Fundamentals Of Law

This document discusses the fundamentals of law, including a buyer's claim against a seller, potential defenses for the seller, and potential remedies for the buyer. It also covers concepts such as chattel mortgage, perfection, fixture, Torrens-registration system, and leasehold. The document provides references for further reading.

Running Head: Fundamentals Of Law
FUNDAMENTALS OF LAW

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Table of Contents
Question 1..................................................................................................................................3
1. Claim of buyer against seller, Potential defense for seller and Potential prevailer............3
2. Remedy for buyer...............................................................................................................4
Question 2..................................................................................................................................6
a. Chattel Mortgage................................................................................................................6
b. Perfection............................................................................................................................6
c. Fixture.................................................................................................................................6
d. Torrens-registration system for interests and rights regarding land...................................7
e. Leasehold............................................................................................................................7
References..................................................................................................................................8

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Question 1
1. Claim of buyer against seller, Potential defense for seller and Potential prevailer
The provided case scenario has mentioned that the buyer wanted to buy a van to start a
courier service and he has mailed a check of $5000 to the seller for booking the van. Sellers
have mentioned that he can sell the van to buyer if he gets the check. He will sell the van
after taking rest of the money in the very next week. However, he has breached his promise
and buyer has the right to proceed legally against the seller by claiming for compensation
based on the promise. In this case, contractual promises have been done by sellers and he has
failed to keep his promise. As suggested by Otabor-Olubor (2015), contractual promises
are made before legal contract and estoppels are considered in order to evaluate this kind of
promises. Buyer can legally proceed to get his claim by considering the concept of
promissory estoppels. Similar case has been seen in the case study of Legione v Hateley
[1983] and first time the concept of estoppel has been adopted by the Australian High Court.
In this case, breach of contractual speculation has taken place as one of the parties has denied
providing extension after getting the deposit money. The buyer has the written proof of that
mail to the seller regarding provision of deposit amount and this aspect can help buyers to
claim his money back along with compensation. The seller has misrepresented the price of
the van through his advertisement. On the ground of misrepresentation by the seller, the
buyer is able to proceed against him in the Court with the help of the Competition and
Consumer Act 2010.
Potential defense for seller
There was no legal agreement have been signed between the buyers and the seller. The seller,
in this case, can consider this aspect to defend him. As there well no legal boundary, seller
can step back. According to Engel, George & Keller (2016), the Australian Contract Law

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helps to get legal justice if any of the contracting party breach any terms mentioned in the
contract. However, in this case, the seller can refund the deposit amount to the buyer in order
to safeguard himself from facing legal issues. In that case, the Court may make a judgment on
the behalf of the seller and he can escape from paying the compensation.
Potential prevailer
The buyer may prevail this lawsuit as he has believed in the words of the Seller. He had
mentioned to pay the rest of the money by the next week from the payment of initial amount.
Accordingly, he has invested more amounts to start his business based on the van.
Misrepresentation of seller and his breach of promise have caused monetary loss of the buyer.
Based on this ground the buyer can get his money back along with the compensation amount.
As opined by Qu (2019), consideration of promissory estoppels can help the buyer to prevail
this lawsuit. In the case study of Waltons Stores (Interstate) Ltd v Maher (1988), a similar
question has arisen and the judge has taken decision based on all relevant areas. However, in
that case, misrepresentation of defendant has been found and the promissory estoppels has
been considered.
2. Remedy for buyer
If the buyer prevails this lawsuit, the Court may help him to get monetary benefit. Firstly the
court will consider statement of the seller a contractual promise. A contract supposed be
taking place and based on this assumption, the buyer has done further investments. The buyer
has relied on the promise of the seller and based on this fact he has arranged investors. In
addition, he has invested more amount to set his courier service business. After that, the seller
has denied to give extension and have asked for $10000 extra amount for the courier van. It is
a clear case of harassment. Due to the changed behavior of the seller, the buyer has been
forced to face financial loss. Tyagi, Shukla & Kulkarni (2016) have mentioned that The Court

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will make judgment by instructing the seller to refund the money he has taken and the buyer
is entitled to compensation as well.
He may be asked to provide the proof of investment of $1200 as it can be seen as proof of
harassment and the same or higher amount can be obtained from the seller by the buyer. In
the case study of Greasley v Cooke [1980], it was mentioned that claimant first needs to
prove that promise have taken place in real and then the legal framework for promissory
estoppel can be applied. Similarly, in this case, the buyer must provide proof of promise to
get the refund and the compensation. For example, he can provide mail details to the court to
prove that he has relied on the promise made by the seller and have provided the check of
initial amount to the seller for buying the courier van. As commented by Pope, Gallimore &
Shi (2016), this kind of aspect is potent enough to prove that he was expected the contract
and based on expectation he have invested money.
Seller has changed his words regarding the contract and asked for extra payment. The buyer
can achieve remedy under consumer and competition act 2010. According to Beale et al.
(2018), this law helps in providing aid to affected individuals regarding trade and contract. In
the case study, it is mentioned that buyer has provided all the documents like check according
to terms of mutual contract. However, later seller refuses to sell the van according to
discussion. This has caused damage of the buyer and caused financial loss. This law includes
provision of contract regarding buying of goods and service. If evidence regarding
conversation is provided by buyer to court then this can help to achieve remedy (Giancaspro,
2017). According to this law if a price of goods is changed after making a contract then price
fixed during preparation of contract will be considered. Hence, buyer can sue seller under this
law and remedy and compensation of financial loss can be obtained from court.

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Question 2
a. Chattel Mortgage
This term is related to commercial vehicle finance. As stated by Anderson (2016), chattel
mortgage allows a lender to lend money to a consumer regarding purchasing a vehicle. In this
case, customer takes ownership of the vehicle but lender takes mortgage on the vehicle as
security regarding the loan. Chattel securities act 1987 incorporates this concept and explains
different sections of taking lease of vehicles and commercial purchase of vehicles. This
contract also differentiates the concepts between lease and purchase. This term is most suited
for those individuals who will use a vehicle for business purposes. Main benefit of this
concept is flexibility in purchasing a vehicle.
b. Perfection
Perfection in law is a concept that is borrowed from the law of bankruptcy in USA. It can be
referred to a process by which a security interest archives protection. A security interest that
is perfected is not impregnable however; it is desired by parties who want security (Skelton,
2017). Different ways are there that can provide perfection in security interest. Among this
registration is most popular and secure way in which perfection is achieved by registering
with statutory authority. Personal property securities act 2009 is related to this concept, which
is a law related to security interest and handling personal property.
c. Fixture
A fixture can be considered as a legal factor that states, any physical part that is attached with
a property. If land is sold then title to the piece of land needs to consider all the fixtures. As
stated by Solinger et al. (2016) anything related to land can be considered as a fixture. For
example, in agricultural fixtures, different rights have been provided to a tenant. This allows

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a tenant to retain the title of a property. This concept is affected by fixtures and personal
properties Act in 2009. This law is related to priorities of interest in fixtures.
d. Torrens-registration system for interests and rights regarding land
This term is related to the process of land registration and transferring system of land. In this
process, the state generates a register regarding holding of land that helps in acting as
evidence (Douglas, 2017). In this register, title of an individual is stated as owner of a piece
of land. In southern Australia Torrens, land registration system is included under the act of
real property, which was incorporated in 1886. This concept is related to legislation of
properties or land and helps to manage disputes regarding land fraud.
e. Leasehold
This term is related to land or property, which is leased by the state to a company or an
individual. However, in this case, all the rights regarding that land are totally reserved to the
state. As mentioned by Griggs (2016), there are different types of leasehold that include term
lease, perpetual lease, and others. Land administration act 1997 is related to this concept of
law. This law deals with different types of leaseholds like pastoral and perpetual leases and
helps to protect interest of all related parties in a lease.

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References
Anderson, J. (2016). Uniform evidence law. Federation Press. retrieved from:
http://lib.oup.com.au/he/samples/anderson_UELG_sample.pdf
Beale, H., Fauvarque-Cosson, B., Rutgers, J., & Vogenauer, S. (Eds.). (2018). Cases,
materials and text on contract law. Bloomsbury Publishing.retrieved from:
https://books.google.co.in/books?
hl=en&lr=&id=jdSLDwAAQBAJ&oi=fnd&pg=PT11&dq=contract+law+australia&ots=xT9j
HB4VsR&sig=96YDlqUfUNVqSDkw6wzQX2Aa8jM
Douglas, M. (2017). Anti-suit injunctions in Australia. Melb. UL Rev., 41, 66. Retrieved
from:
Engel, E., George, T., & Keller, J. (2016). Residential mortgage lending for underserved
communities: recent innovations. ProfitWise News and Views, 1, 10-19. retrieved from:
https://www.chicagofed.org/~/media/publications/profitwise-news-and-views/2016/pnv-
issue1-2016-lmi-article2-pdf.pdf
Giancaspro, M. (2017). Is a ‘smart contract’really a smart idea? Insights from a legal
perspective. Computer law & security review, 33(6), 825-835. retrieved from:
https://www.researchgate.net/profile/Mark_Giancaspro/publication/317354410_Is_a_
%27smart_contract%27_really_a_smart_idea_Insights_from_a_legal_perspective/links/
5c2d5891a6fdccfc707902d8/Is-a-smart-contract-really-a-smart-idea-Insights-from-a-legal-
perspective.pdf
Griggs, L. (2016). The doctrinal coherence of the Torrens system of land registration in
Australia: evolution or revolution?.2(2), 123-235. Retrieved from:
https://pure.bond.edu.au/ws/portalfiles/portal/17512508/the_Doctrinal_Coherence_of_the_To
rrens_System_of_Land_Registration_in_Australia.pdf

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Otabor-Olubor, I. (2015). Stuck in a time warp: security interests in chattel mortgages and the
bills of sale legislation in Nigeria. International Company & Commercial Law
Review, 26(11), 345.retrieved from: http://irep.ntu.ac.uk/id/eprint/26210/1/3808_Otabor-
Olubor.pdf
Pope, A., Gallimore, P., & Shi, S. (2016, January). Leasehold Property and Investor Risk
Misestimation. In Proceedings of the 22nd Annual PRRES Conference, Sunshine Coast,
Queensland, Australia (pp. 17-20). retrieved from:
http://www.prres.net/Papers/pope_leasehold_risk_misestimation.pdf
Qu, J. (2019). Research on the perfection of the countermeasures of the judicial execution
scheme in the administrative law system based on annealing algorithm. EURASIP Journal on
Wireless Communications and Networking, 2019(1), 37.[Online] retrieved on 13th may 2019,
from: https://link.springer.com/article/10.1186/s13638-019-1355-y
Skelton, A. (2017). Restitution and contract. Informa Law from UK: Routledge.
Solinger, O. N., Hofmans, J., Bal, P. M., & Jansen, P. G. (2016). Bouncing back from
psychological contract breach: How commitment recovers over time. Journal of
Organizational Behavior, 37(4), 494-514. retrieved from:
http://eprints.lincoln.ac.uk/24756/1/Solinger_etal_2015_JOB_Word.pdf
Tyagi, S., Shukla, N., & Kulkarni, S. (2016). Optimal design of fixture layout in a multi-
station assembly using highly optimized tolerance inspired heuristic. Applied Mathematical
Modelling, 40(11-12), 6134-6147. retrieved from: https://ro.uow.edu.au/cgi/viewcontent.cgi?
article=6976&context=eispapers
Case laws
Greasley v Cooke [1980] 1 WLR 1306; [1980] 3 All ER 710
Legione v Hateley [1983] 57 ALJR 152 CLR 406
Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387

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