logo

Business Law Assignment | Valid Contract

7 Pages1405 Words120 Views
   

Added on  2020-05-16

Business Law Assignment | Valid Contract

   Added on 2020-05-16

ShareRelated Documents
Running Head: BUSINESS LAWBusiness lawName of the student:Name of the University:Author Note
Business Law Assignment | Valid Contract_1
1BUSINESS LAWIssue:Was a valid contract formed between Rofi and The Bolton Connect Pty Ltd?Was there unconscionable conduct on the part of John, agent of The Bolton Connect PtyLtd.?Rule:It is to be stated that the conduct or action of a party to a contract will be held to beunconscionable if such conduct defies good conduct and is considered unreasonable. Theprovision of unconscionable conduct however, is ambiguous as there are no clear definitions of itprovided by the law (Knapp, Crystal and Prince 2016). It is to be mentioned that the clause of unconscionable conduct is governed by thecommon law of Australia. Schedule 2 of the Australian Competition and Consumer Act 2010also governs the provision of unconscionable conduct.Section-21 of the Australian Consumer Law states that a contract should be signed by aconsumer, only if he completely understands the terms of such contract. However, such principleholds true for written contracts. A person dealing with the acquisition and supply of goods willbe regarded to have conducted in an unconscionable manner if he fails to act in good faith orimpose any unreasonable terms on the weaker party. Unconscionable conduct will also be said tohave been exhibited by the stronger party if he uses undue influence on the weaker party to enterinto such contract.
Business Law Assignment | Valid Contract_2
2BUSINESS LAWSubsection 21(3) mentions that the court will consider the circumstances which arereasonably foreseeable to a reasonable man in determining whether the subsection of theaforementioned act has been breached.It can be stated according to subsection 4c that the court will assess the terms of thecontract and the execution of duties of the parties in determining whether any unconscionableconduct was exhibited by either of the parties. In addition it can be said that the court might alsoassess the circumstances of the parties at the time when the contract was formed. Intervention of equity is essential and inevitable in certain circumstances according tocommon law to protect the interests of the weaker party to a contract. However equity intervenesin circumstance where one of the parties takes advantage of disability of the weaker party. If it isestablished that one of the parties intended to form the contract on harsh terms which were likelyto create oppressive results for the weaker party, such party has the right to rescind the contract. The case, Louth v Diprose High Court of Australia (1992) 175 CLR 621; [1992] HCA61 deals with the clause of unconscionable conduct. In this case the defendant had emotionallyblackmailed the plaintiff to buy a house for her. The defendant had taken advantage of theplaintiff’s feelings for her. However, after their relationship failed and the two fell out theplaintiff started legal proceedings against the defendant and claimed the house back. The courtheld that the plaintiff had every right to claim the house back. The action of the defendant washeld to be unconscionable as she had emotionally blackmailed him to buy the house and suchconduct created ‘an atmosphere of crisis’ and was not necessary to be exhibited in reality.Another important case dealing with the same provision is Blomley v Ryan (1956) 99CLR 362. In this case the defendant had agreed to buy from the plaintiff a farm. The plaintiff
Business Law Assignment | Valid Contract_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Law Assignment: Valid Contract
|7
|1427
|170

Unconscionable Conduct in Louth v Diprose (1992) - Business Law
|6
|977
|131

Critical Analysis of Kakavas v Crown Melbourne Ltd
|10
|2792
|18

Unconscionable Bargain: Principles and Legislation
|13
|4141
|83

Business Tort Law: Assignment
|4
|854
|19

Unconscionable Conduct and Misrepresentation in Contract Law
|8
|2229
|411