Business Law Assignment

This article discusses four different scenarios related to Contract Law of Australia. Each scenario has a specific issue, rule and application. The conclusion is drawn based on the application of the rule to the given scenario. The scenarios include issues related to the validity of a contract, delay in performing contractual duties, clarity of terms in a contract, and implied terms in a hire agreement.

Running head: BUSINESS LAW ASSIGNMENT
Business Law Assignment
Name of the Student
Name of the University
Author note

1BUSINESS LAW ASSIGNMENT
Question 1:
Issue
The related issue of this scenario is whether the note in small print about the $1000
replacement fee will bind Weitao.
Rule
The Contract Law of Australia will be applied in this particular scenario. The
elements that constitute the formation of a contract is essential as it decides whether the
contract is valid or not. A contract is therefore, formed when one party makes an offer and
the other party accepts it. The general constituents that form a contract are offer, acceptance,
consideration, capacity and legality. Therefore, if these elements are present when a contract
is formed between two parties, it will be considered to be valid. This has been mentioned in
the case of Sydney City Council v West. Contracts can thereafter be void, valid, voidable and
unenforceable in nature. When the offeror is making an offer or when the proposal is placed
to the offeree, it must be in a written form. Such a situation has been observed in the case of
R v Clarke. Therefore, these are the necessary requirements that need to be fulfilled and
checked when a contract is being formed. The nature of the contract depends on how, when
and under what circumstances the contract was formed. If one party has agreed with the terms
and conditions of a contract, it will come into existence.
Application
From the given scenario, it can be stated that all the necessary elements were present
when the contract was formed between Weitao and Evelyn. While hiring the projector from
Electric Blues, he had signed a document that included all the intricate details and duration of
the of the hiring process. However, there was also an information provided by Evelyn at the

2BUSINESS LAW ASSIGNMENT
bottom of the page that was overlooked by Weitao while signing it. The note at the bottom
stated that in case any kind of damage is caused to the equipment that has been hired, the
customer would be bound to pay an amount of $1000 as a replacement fee. Thereafter, the
casing was damaged by Weitao and he was asked to pay the amount for the repair. It has been
observed that the offer was accepted by Weitao when the proposal was made by Evelyn. Such
a situation was established in the case of R v Clarke. Therefore, it can be stated that since all
the elements were present during the formation of the contract, it will be treated as a valid
contract.
Conclusion
Lastly, it can be concluded stating that Weitao will be bound by the note and will pay
the amount of $1000 for replacing the projector.
Question 2
Issue
The issue in this situation is whether Warren is correct from his point of view
regarding the contract that was formed between Evelyn and Warren.
Rule
As per the legislation of the Contract Law, it can be stated that when the contract is
formed, the essentials should be present otherwise, it will be considered as an invalid one. A
contract can be formed either orally or in a written format. When a contract is formed, both
the parties must be aware of the terms and conditions they are agreeing upon. It has been
established in the case of Carlill v Carbolic Smoke Ball Co. Both the offeror and offeree
should abide by the necessary policies and terms of the contract. From the legislation, it can
be said that both the parties must have the knowledge of the nature of the contract. Hence,

3BUSINESS LAW ASSIGNMENT
both the parties involved should know the important elements of the contract that they are
forming. A valid and legal contract must always be in writing in the form of an agreement.
Both the parties have a certain duties that should be carried out accordingly. Contractual
parties should take care of the benefits of a contract.
Application
From the given situation, it can be stated that an oral agreement was formed between
Warren and Evelyn. Evelyn had hired Warren to paint the internal walls of the store. Both of
them agreed on the condition or consideration, which was the fact that the painting will take a
full day’s time. Thereafter, Warren had called repeatedly and got a response from Evelyn
where she delayed the entire plan of painting. Therefore, the legislation of contract will be
applicable in such a situation where the terms and conditions of a contract must be carried out
at the decided time and not delayed. Every contractual party should perform their duties and
responsibilities accordingly. Evelyn should not have formed the contract with Warren if she
wanted to delay the procedure.
Conclusion
It can be concluded by stating that Warren is correct since Evelyn was making him
wait for performing his duties as it was discussed and formed in the contract.
Question 3
Issue
The issue that is associated with this scenario is whether Ambreena used the term that
involves those particular tablets with more storage space or not.

4BUSINESS LAW ASSIGNMENT
Rule
According to the Contract Law, it has been observed that when a contract is formed
with all essential elements, it is important for both the parties to comprehend the terms and
conditions of the contract. When the contract is being created, the terms used must be
clarified if not understood by the other party. Hence, there should not be any confusion
among the parties. Such a scenario has been observed in the case of Causer v Browne. There
must be a proper consideration involved in such kind of situations. One must be careful about
what he or she stating when the contract is being formed. The necessary elements play a
major role in deciding whether the contract can be treated as valid or not. However, in the
case of Codelfa Construction v State Rail Authority of NSW, it was observed that there was
a confusion among the parties forming the contract since neither of the parties stated anything
clearly or evidently.
Application
In this scenario, it has been observed that Ambreena had bought a tablet from Evelyn
and the purpose of which was to complete a significant project. Evelyn had stated that the
tablet that she sold to Ambreena had a lot of storage capacity and will be helpful to her.
Thereafter, while installing the applications, Ambreena noticed that there was not enough
space. Hence, it can be said Ambreena did not ask for the storage directly to Evelyn but
Evelyn made her buy one tablet saying that it has a storage but it did not. This will be treated
as Evelyn’s fault as well as Ambreena not being clear about what kind of tablet she wants.
Conclusion
It can be concluded stating that Evelyn will be liable towards Ambreena.

5BUSINESS LAW ASSIGNMENT
Question 4
Issue
The issue of this case study is whether there was an implied term in Jake’s hire
agreement and if the charger will be provided with the laptop being hired.
Rule
As per the Contract Law, it can be said that an implied contract is formed when two or
more parties have no written contract. There arises a situation where the law creates an
obligation as per the interest of fairness, which is based on the behavior and situation of the
parties. It is therefore important to establish the existence of an implied fact in the contract. It
has been observed in the case of Associated Newspapers Ltd v Bancks. The terms of an
implied contract are generally assumed and implied. As per the legislation, the essential
elements are offer, acceptance and consideration of an implied contract. Such a scenario was
established in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists
(Southern) Ltd. The parties in case of an implied contract or when it is formed implies the
general rules.
Application
This scenario deals with the concept of implied contract. It has been observed from
the case study that Jake had purchased a laptop from Evelyn by filling out the paperwork.
Thereafter, he later realized after reaching home that Evelyn did not give him the charger of
the laptop. When he asked for it, she informed that he would be charged extra for that. There
was hence an implied term in the hire agreement of Jake. There was no mention of the
charger when the laptop was being purchased by Jake from Evelyn. Neither of the parties
mentioned the term of the charger, hence neither of the party will be held liable. However, it

6BUSINESS LAW ASSIGNMENT
can be stated that Jake implying that the charger will be provided will be considered as he
using an implied term for the hire agreement.
Conclusion
It can be concluded stating that in case of an implied contract, it creates an obligation
based on the circumstances. Hence, in this situation, Evelyn will not be held liable for not
providing the laptop charger.

7BUSINESS LAW ASSIGNMENT
References:
Case Laws:
Associated Newspapers Ltd v Bancks
Carlill v Carbolic Smoke Ball Co.
Causer v Browne
Codelfa Construction v State Rail Authority of NSW
Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd
R v Clarke
Sydney City Council v West