Contract Law and Negligence Cases
Added on 2020-03-02
8 Pages2160 Words38 Views
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1Q 1Issue: the issue in this case is if BikeHike Ltd is liable under the Australian Consumer Law forthe false statement made by its accountant, Gary.Rule: The Australian Consumer Law, which is a part of Competition and Consumer Act, 2010provides that any statement related with the products or services of the business need to beaccurate, true and capable of being substantiated. On the other hand, if the consumers have beenmisled, points may be prescribed. In such a case it does not matter if the false statement wasmade intentionally or not. Therefore the Australian Consumer Law provides that it is illegal for abusiness to make an incorrect statement or a statement that may create the false impression..Such statements include the statements or advertisements issued in the media (including print,television, radio or social media) or on the packaging of the product. Similarly, it also representsany statement that has been made a person who represents the business. Although the lawprovides that competitive advertising can be used for the purpose of promoting the superiority ofthe products or services of the company as compared to its competitors, but in such a case theclaim should be accurate. Such a comparison can be related with the quality, price or the range ofthe product or services.Application: By applying the above mentioned legal rules to the facts of this question, it can besaid that BikeHike Ltd is liable for the statement made by Gary. The reason is that this statementwas a false statement and it has been made on the social media. Similarly, the statement wasmade by a person who represented the business.
2Conclusion: Therefore, ToughMount can bring action under the Australian Consumer Lawagainst BikeHike Ltd for the false statement made by Gary on the Facebook page of thecompany. Similarly, as Gary was representing the company, BikeHike Ltd when he made thestatement, it can be said that the companies liable for Gary's actions.Q 2Issue: the first issue in this case, is if the elements required to create a valid contract are presentbetween Brenda and Steven which may allow Brenda to sue Steven for breach of contract.Similarly, another issue is the remedies that may be available to Brenda, if it is established thatthere has been a breach of contract. Rule: The Australian contract law provides the rules related with the formation of a validcontract between the parties. The formation of a contract deals with the requirements that arenecessary to make a valid contract. A contract can be described as a promise or a set of promisesthat can be legally enforced against the parties. Therefore in this regard, a promise can bedescribed as an undertaking by one party or not to do something in return the other person agreesor promises to do or not to do something. Such a promise or a set of promises becomes legallyenforceable if certain essential elements are present. For this purpose it is required that thereshould be an agreement between the parties (offer and acceptance), along with consideration andthe intention of entering into legal relations, as well as the legal capacity of the parties tocontract.
3The common law provides for the remedy of damages and liquidated claims. In cases wherethere has been a breach of contract. In this context, the damages are awarded by the court as asubstitute for performance. Before the damages are awarded with a view to raise the plaintiff inthe same position in which it would have been if the contract was not breached. Hence, punitivedamages are not awarded. They could ever remedies include the remedy of specific performanceand injunctions. In case of the remedy of specific performance, the court makes an order underwhich the breaching party is directed to perform the contract in the way. That is specified by thecourt. Injunctions can be described as the orders, which are about the not to do something, forexample, the party should not persist with the breach of the contract.Application: giving in to the facts that have been mentioned in this question, it can be said thatthe necessary elements, required for creating a valid contract are present between Brenda andSteven. An offer was made by to purchase the particular cloth and Brenda had accepted this offerby replying through the e-mail. Therefore it can be said that a valid contract was created betweenBrenda and Steven. As a result, Brenda can take action against Steven for the breach of contract.Similarly, the remedies that are available in case of a breach of contract will be available toBrenda.Conclusion: Brenda can take action against Steven for the breach of contract. Similarly, she maysee the remedy of damages or the remedy of specific performance for the breach of contract bySteven.
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