Corporations Law

This document provides study material and solved assignments on Corporations Law. It covers various legal issues and rules related to corporations.

Running head: CORPORATIONS LAW
CORPORATIONS LAW
Name of the Student
Name of the University
Authors Note

1CORPORATION LAW
Answer 1
Issue:
The issue to be identified here is whether Noel will be successful depending on the
formation of a legal relation with James.
Rules:
Creation of a legal relation is established by means of a contract between the parties.
In order to create a valid contract, few essential conditions are to be followed which are as
follows, the first condition is the agreement between the parties that must be initiated by
giving offer by one party to another and such offer when accepted by the offeree, an
agreement results as stated in the case of R v Clarke [1927] HCA 47. The second condition
is consideration as observed in Beaton v McDivitt (1987) 13 NSWLR 162. The parties to a
contract must have the capacity to enter a contract as per section 9 of Contracts Review Act
1980 (NSW). Minors as per Minors (Property and Contracts) Act 1970 (NSW),
intoxicated persons and mentally impaired are prohibited from entering into a contract. The
fourth criterion is the intention of the parties to enter into a legal relation as given in Helmos
Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235. Social or domestic agreements
are to be presumed as not having intention to create legal relation. Lastly, the agreement of
the contract must clearly and sufficiently mentions the rights and duties of the parties to the
contract. It is stated in the case of Whitlock v Brew [1968] HCA 71.
Application:
As per the facts of the case, no legal agreement was formed between them because of
they are students and must be prevented to enter into the contract as per the said Actas they
lacks the capacity. They do not have any intention to enter into the legal relation. Moreover
there lies no certainty about the agreement between them. Thus, the agreement between

2CORPORATION LAW
James and Noel forms a social contract as per the Ermogenous v Greek Orthodox
Community of SA Inc [2002] HCA 8 and not legal contract.
Conclusion:
It can be concluded that Noel will not be successful as no legal relation lies between
them.
Answer 2:
Issue:
The issue here is whether Jack possesses any legal rights over Bert’s land.
Rules:
An easement can be described to be a non possessory right to make use of or enter
into the property without possessing it and such property belongs to another. The provisions
of easements are useful for determining the pathways over two or more properties. The party
who uses or enters into the other’s property is regarded as the dominant estate whereas on
whose property or land, such right is used is called the servient estate. This is provided in the
case of Re Ellenborough Park [1956] Ch 131. Easement can be granted by both express or
implied manner. Express way of granting easement includes grant through deed or any other
legal instrument. Implied easements are granted by the conduct or behaviour of the parties.
Application:
From the facts of the case, it is seen that Jack is being permitted to keep his car in a
shed that is located on the large car wrecker yard of Bert. Jack made a contract orally and for
this paid 20$ weekly. Here Jack has the easementary right over Bret’s land due to which he
can enter and go out the yard to have access to his car. Here Bert’s land acts as servient estate
and the easement is created impliedly.

3CORPORATION LAW
Conclusion:
From the discussion, it is seen that Jack has easementary right on Bert’s land.
Answer 3:
Issues:
The issues involved here the issues arising out of Sale of Goods Act between Harry
and Sally.
Rules:
This case study is to be analysed in the light of the Sale of Goods Act 1979 of UK
that deals with selling of goods. Section 14 of the said Act states that when a seller sells
goods during regular course of business, the goods are to be of satisfactory quality which
means the quality of goods must be fit for the purpose for which the goods are generally used.
Application:
As per the facts given, the salesperson cannot bring into any such clause as per the
section 14 of the Act. It is the duty of the seller to sell goods that are fit for the purpose. Thus
such form signed by Harry and Sally will not be binding on them and they can bring legal
action against the seller for selling the defective clothesline as seen in BSS Group Plc v
Makers (UK) Ltd (t/a Allied Services) [2011] EWCA Civ 809.
Conclusion:
Thus Harry and Sally can enforce their legal rights against the seller.

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References:
Beaton v McDivitt (1987) 13 NSWLR 162
BSS Group Plc v Makers (UK) Ltd (t/a Allied Services) [2011] EWCA Civ 809
Contracts Review Act 1980 (NSW)
Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8
Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235
Minors (Property and Contracts) Act 1970 (NSW)
R v Clarke [1927] HCA 47
Re Ellenborough Park [1956] Ch 131
Sale of Goods Act 1979
Whitlock v Brew [1968] HCA 71