Business Law in Brazil and Australia

Running head: BUSINESS LAW
Business law
Name: NIKHIL KUMAR DODLEY
ID: 00173065T
Scenario country: BRAZIL
Prof: BARRON
TORRENS UNIVERSITY
Word count: 1800

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BUSINESS LAW
Law Scenario country (Brazil) Home Country (Australia)
Legislative system
Rule of Law
The law of brazil is based on
statutes and, partly and more
recently, a mechanism
called súmulas vinculantes. It
derives mainly from the civil
law system of European
countries
There are many codified
statutes in force in Brazil.
The current Federal
Constitution, created on
October 21, 1988, is the
supreme law of the country
The Constitution organizes
the country as a
Federative Republic formed
by the indissoluble union of
the states and municipalities
and of the federal district.
Under
the principles established in
the Federal Constitution,
Brazil's 26 federate
states have powers to adopt
their own Constitutions and
laws.
There is a constant progress
towards establishing uniform
laws and maintaining and
changing legislative laws.
Australian legal system
reflects a parliamentary
democratic system. Federal
system can be observed in
that country. It means the
power is divided between one
national government and six
states. The states are self-
governing states and the
judges are depending on the
precedents.
The Constitution of Australia
is the primary legal document
and it is supreme law of the
land which gives all the
powers to the legislative
documents.
Every citizen and the
government is entitled to a
uniform law and the laws are
made to make sure there is no
bias and everyone is made to
feel equal in the eyes of law
(Curtin, 2016).
Court system The court system is
multifaceted and the law
followed is mostly civil in
nature. The jurisdictions are
divided into electoral,
constitutional.
There is a hierarchy of courts
in Australia and the courts are
divided into federal and state
levels. The highest court in
Australia is High Court.
Types of courts The Supreme Federal Court,
Superior Court of Justice,
Magistrates’ Court, Local
Court, District and County

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BUSINESS LAW
Superior Labour Court,
Superior Electoral Court
Court, Supreme Court,
Federal Courts, High Court.
Diagram of courts The Supreme Federal Court-
Superior Court of Justice-
Superior Labour Court-
Superior Electoral Court
( picture 1 in appendices)*
Magistrates’ Court-Local
Court- District and County
Court-Supreme Court-Federal
Courts- High Court.
( picture 2 in appendices)*
2. Contract Law
Elements of contract law
The contract law in Brazil is
influenced by the Brazilian
Civil Code and it also takes
into consideration
Consumer’s Code. The
contract should be legal and
moral.
The contract law has to be
valid only if there is an
agreement, offer and
acceptance and a lawful
consideration. Australian Law
is influenced by common law
and it ensures the relationship
between the two parties who
are willing to enter into a
party. Contract law is formed
by the legally enforceable
agreements which are valid in
the eye of law. In cases of
any breach, the parties can
claim damages (Mason,
2016).
How are contract laws made The agreement has to be legal
and moral and the agreement
should deal with possible
standards which can be met
by both the parties (Smits,
2017).
The parties have to make a
free bargain and they need to
enter into a legally binding
agreement.
Frustration of Law A contract is said to be
frustrated when it cannot be
legally enforceable. (Klee,
2018)
When the contract cannot be
enforced because of
unenforceable conditions and
the parties cannot enforce the
contract. None of the parties
are at fault in cases of
frustration of contract. The
functions of the contract is to
meet the goals and objectives
of the contract and in cases of
frustration, the contract
becomes terminated
automatically and thereafter
the parties are not obligated
to honour the ends of the

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BUSINESS LAW
contract. In cases of frustrated
contracts, it becomes void ab
initio, that is, void since the
inception. Delay is one of the
reasons when a contract
becomes frustrated. One of
the problems of claiming
frustration is the difficulty in
establishing it and therefore it
increases the chances of
claiming damages.
Remedies of contract law Punitive damages mean they
can punish the offending
parties.
Damages can be either
liquidated or unliquidated
where the sum is either
decided or left for court to be
decided. Liquidated damages
are calculated on a weekly
basis whereas unliquidated
damages can be claimed in
cases of breach (Hoeppner,
Freud & Depoorter, 2017).
Unliquidated damages can be
claimed when the breach
could not have been
anticipated (Eldridge, 2016).
3. Agency Law
Duties of agent
The agent has to promote the
business of principal.
Brazilian Civil Code of 2002
manages the law of agency in
Brazil. It is a contract entered
into between the agent and
the principal and the rules of
federal apply.
The agent is duty bound to
work for the profit of the
principal. He has to act as the
intermediary promoting the
business of the principal
(Piva & Sasanelli, 2017)
Rights of agent In Brazil, the agent has rights
to be compensated for the
loss that is suffered in the
transaction. The Brazilian
Civil Code, 2002 talks about
the rights and duties of the
agent. The agent has the right
to be indemnified in cases of
loss.
The agent is compensated by
the principal for working
under him. The agent has the
right to be reimbursed by the
principal for all the expenses
that he bears on behalf of the
principal. The agent shall also
be indemnified against
unlawful acts and the agent
shall not be held liable for the
acts of the principal. The
agent shall only be treated as
the representative of the