Business Law: Contract Law and Law of Torts and Negligence

This presentation provides an overview of contract law and the law of torts and negligence in the context of business law. It discusses the importance of exclusion clauses in contracts and the duty of care in preventing negligence. The presentation also includes case studies to illustrate these concepts.

BUSINESS LAW
PART A AND PART B

INTRODUCTION
Business law are such laws which is imposed mainly on business and the employees engaged with
their business activities. Theses laws are enacted by the parliament and they are bound on every
business and the parties are bound to follow such rules. They are regulated by applying certain
policies and agreement to parties in respect of entering into the contract. Business laws provides a
fair decisions between the parties, employees and public which are dealing with each other so that
there rights are secure and they can enter into the agreement in fair terms and conditions. Present case
study is based on contract law which is made between the Sam and Quick Klean Dry cleaners Pty
Ltd. regarding the exclusion clause. Second case study is based on Law of Torts and Negligence
which happens with the Frank in the local ground at the time of watching the football game.

PART A
ISSUE
• As per this case study, the issue which is found in this case is that Sam first time try the
Quick Klean Dry cleaners to dry clean his suit.
• Quick Kelan in return given a receipt in which it clearly mentions all the details in
agreement which they made regarding the dry clean.
• They clearly present that they will take care of that suit but they will not take any
responsibility during the cleaning or stains which already exits.
• The assistant to communicate with Sam had clearly notifies that these clauses is also
written in the back of the tickets and it is considered to be the biggest evidence to prove
any guilt.

RULES
• As under the contract law, exclusion clause are generally inserted in the contract law as
under this clause it involves exception or exclusion to implement any condition which are
imposed in the contract.
• As Contract law is an agreement which is made between the parties and both the parties
are legally bound to follow the contract and their terms and condition are also to be
fulfilled.
• The contract law are exempted in cases when the parties had not attained the age of
majority or they are not competent to carry the contract or of unsound mind.

CONTINUE
• Thus, under Exclusion clause various point are to be fulfilled to make it valid such as
true exclusion clause in this clause the point which are written in the contract doesn't
result in breach to any of the parties.
• This clause is made to present the true and fair values and the duties which they person
are also in various terms and conditions.
• Next is related to time limitation clause as every contract is valid till it is under the time
which is decided by the parties.

CONTINUE
• In the case of Darlington Futures Ltd V Delco Australia Pty Ltd [1986], both the parties
entered into a contract on 12 June 1981 regarding providing brokerage services.
• They entered into an agreement which is clearly mentioned as clause that Delco
Australian wish to open an account of traded at the discretion of the appellant company
I.e. Darlington Futures Ltd. and the answer was No.
• After that appellant stuck from such losses and they demand from the respondent that
they engage in some transaction regarding to tax saving which helps them to avoid losses.

APPLICATIONS
• The contract law is relevant to this case study and as per the rules which is discussed
above clearly stipulate that there is an agreement between the parties regarding the
clauses which is clearly mentioned at the back of tickets and both the parties agree to
such activity.
• As if the assistant not discussed the fact regarding the non removal of stain during dry
clean than it results in breach of contract.

CONTRACT LAW
• As under contract Law, Sam enters into the agreement with the Quick Klean regarding
the dry clean of suit and after examining all the terms and condition which is imposed by
one or the parties and the other party agree it, than they enter into the agreement which is
legally bound on both the parties.
• Sam enters into the agreement which means that they agreed all the terms and condition
and the condition which the assistant mentioned at the time of taking that suit that they
will take care of their suit but are not responsible if any stains arises at the time of
cleaning.

EXCLUSION CLAUSE
• Exclusion clause are the clause which is made in the contract and which clearly identifies
the rules which are excluded from the contract and the other party is not bound if any
incident happens against such case.
• Sam cannot file any suit against the Quick Klean as they have clearly identifies that they
are not bound to follow any such act which they have clearly mentioned in the receipt.
• As it is the Sam own mistle that after knowing such facts they still enter into the
agreement with the other party

CONCLUSION
From the above case study it can be concluded that Sam is not liable to sue any of the
parties as he is bound under the contract. The decision are finalised by both the parties and
the terms and condition are also be disclosed under the contract so in such cases they enter
into the valid contract and both the parties have to follow such terms till the contract is
under the time limitations.

PART B
ISSUE
• In the case study of Frank, he is a football lover and attended various games which is held
in his local ground.
• One day occasionally, the football hit his stand where he is sittings and then hit his head
which bring him to push from their seat and break his arm.
• As Frank was the frequent visitors in that local ground and the games are held every time.

RULES
• Under the Law of Torts and Negligence, it results in arising any mistake which is to
committed under the civil liability or neglect any act which cause any injury to the other
party.
• There are various factors which examined under the law of torts and negligence as duty
of care, breach in duty and damages caused with such act.
• It is the duty of the one party to take care of certain activity which results in causing any
damage to other party.

CONTINUE
• As under the Rules of Australian Rules Football, they have to take care of their players at
the time of playing so that they can secure their life from affecting to any injury.
• There are certain norms which the viewers also have to take care at the time of watching
the matches.
• As it is the football grounds so it carries various risk and injuries to their life at the time
of match occurs.
• If the injury is committed wilfully to any viewers than the ground where the matches are
organising is liable to compensate that person on resulting in neglecting the duty of care.

APPLICATION
• a) Frank cannot sue the local ground on account of causing any injury to him. As under
the rules of Australian Football, if any viewers watch the match they are at their own risk
and no ground is liable to compensate him from any loss suffered.
• As they are known of the facts that the ball can be raised at any person and it can hit
anyone at any place until the incident is committed wilfully.
• As Frank not use the law which is related to torts and negligence as there is no breach in
duty as any party not affected their rights wilfully and the duty of care is also mentioned
which is most important in civil liability.

CONTINUE
• b) The council or the club can use the duty of care in relation to football ground against
the frank.
• According to Australian Rules football, it is the own duty of the people that at the time of
seeing the match anything can be happened.
• As it is the outdoor games which has no restricted area to play.
• The ball can be reached to any place and it is the own duty of the viewers that they know
that this game is risky and bring injuries to their body they have to see that match
accordingly.

CONCLUSION:
From the above case study it can be concluded that Frank cannot claim any compensation to
the council or club for the injuries he caused at the time of watching matches in the local
ground. As frank had to imposed their own duty of care as he is familiar with the injuries
which can be caused at the time of playing the football. If he causes arm injured it's his own
mistake as if any player commit this act wilfully then he is liable to get compensation and
also punished under the law if torts and negligence. If any damage's or breach is conducted
in any of the activity than they are imposed to compensate to other party in other cases there
are not liable to be proved in any such cases and in these matters the frank is liable for his
own injuries

CONCLUSION
According to the above case study it is concluded that Business law helps in representing
the ethics and norms which the government imposed against the business and employees
and various parties who enters into the business agreement with the other parties. Business
law are mainly imposed at the time of entering into the contract or maintain an agreement
with the parties. Various terms and condition are to be fulfilled and also civil liability are
imposed against the parties in cases of violation of contract. Civil cases in relation to law of
torts and negligence are also conducted which results in lack of duty of care, breach in any
duty or damages which arises wilfully to any other parties.

REFERENCES
• Cheung, F. Y. K. and et.al., 2016. Relationship contracting in Australia. Journal of Construction
Procurement. 11(2). p.123.
• Lindgren, K. E., Carter, J. W. and Harland, D. J., 2015 Contract Law in Australia. Butterworths.
• Lindgren, K. E., Carter, J. W. and Harland, D. J., 2015. Contract Law in Australia. Butterworths.
• McDonald, B., 2018. Legislative intervention in the law of negligence: the common law, statutory
interpretation and tort reform in Australia. Sydney L. Rev. 27. p.443.
• Nygh, P. E., Davies, M. and Davies, M., 2017. Conflict of laws in Australia. (p. 29). Butterworths.

CONTINUE
• Peden, E., 2017. Incorporating terms of good faith in contract law in Australia. Sydney L.
Rev. 23. p.222.
• Stewart, P. E. and Stuhmcke, A. G., 2015. Australian principles of tort law. The
Federation Press.]
• Tomasic, R., Bottomley, S. and McQueen, R., 2018. Corporations law in Australia.
Federation Press.
• Wilks, J. and Davis, R. J., 2015. Risk management for scuba diving operators on
Australia's Great Barrier Reef. Tourism Management. 21(6). pp.591-599.

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