BSBLEG415 Apply Contract Law Principles

The assignment focuses on the principles of contract law as outlined in the BSBLEG415 course. It covers essential topics such as contract formation, legal obligations, and consumer rights. Students are required to demonstrate their understanding of these principles through various assessment criteria, which may be evaluated in a workplace or simulated environment. The content includes detailed explanations of legal concepts, case studies, and references to relevant legislation, ensuring a comprehensive understanding of contract law.

Apply the Principles of Contract Law

TABLE OF CONTENTS
1. Stating the importance in relation to establishing the terms of contract ...........................1
2. Outlining the six elements required for contract formation ..............................................1
3. Differentiating condition and warranty ............................................................................1
4. Distinguishing offer and invitation to treat .......................................................................1
5. Explaining postal rule ........................................................................................................1
6. Defining condition precedent and providing example.......................................................1
7. Presenting the implied terms of contract ...........................................................................2
8. Privity of contract...............................................................................................................2
9. Presenting circumstances that may result into the discharge of contract...........................2
10 Stating the aim of making payment at the time of contractual breach..............................3
11. Presenting Competition and Consumer Act for case evaluation .....................................3
12. Stating the condition mentioned in a given case .............................................................3
13. Summarizing case situation..............................................................................................3
14. Assessing alternative remedies.........................................................................................4
15. Showing the latest code of practice for conveyancers .....................................................4
16. Stating the difference between common law and legislation ..........................................4
17. Depicting the legal matter that involves contractual aspects............................................4
18. Stating the option available to the concerned party on breach ........................................4
19. Summarizing the aspects in relation to Mareva order .....................................................5
20. Five condition that court applies in relation to contract ..................................................5
REFERENCES ...............................................................................................................................6

1. Stating the importance in relation to establishing the terms of contract
By establishing the terms of contract innocent party can get security over the undesirable
practices of other one. Moreover, terms of contract clearly depict the obligations of each party
according to which they need to perform (Lindgren, 2016).
2. Outlining the six elements required for contract formation
Consideration, consent, offer and acceptance, lawful object, legal intention of creating
relationship as well as capacities of parties are the main six elements that needed for contract
formulation (Martin, 2016).
3. Differentiating condition and warranty
In the case of condition, innocent party has two options either demand for compensation
or repudiate the contract (Poole, 2016). On the other side, in warranty, innocent party can only
demand for compensation in against to loss suffered. Apart from this, in contract breached
between seller and buyer then contract will be terminated under the condition while in the
warranty, purchaser can claim for the damages. Condition is associated with the purpose of
contract in direct manner while warranty is one kind of subsidiary provision.
4. Distinguishing offer and invitation to treat
Offer and invitation to treat aspect differs from each other to the significant level.
Moreover, in offer, offeror presents proposal which can be either accepted or rejected by offeree.
On the contrary to this, in the case of invitation to treat seller is not bound to sell products or
services (Walker, Accadia and Costa, 2016). In this, seller only invites people to present their
proposals in relation to purchasing or selling aspect.
5. Explaining postal rule
From assessment, it has been identified that acceptance through the means of post is
acceptable to the large extent (Yip and Goh, 2017). According to the postal rule, if postage fees
paid and elements of letter are addressed in an appropriate manner then acceptance through the
means of post is legal or valid.
6. Defining condition precedent and providing example
The law of contract in which conditions are made before occurring any kind of event and
issues between buyer and seller is known as condition precedent. It is the most used case in
contract law for preventing buyer before existing some excuses or events. It implies for the
aspects that must be fulfilled before the formulation of contract. For instance: Individual who
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wants to purchase car will implement the same if monetary institution grants loan (Yip and Goh,
2017). Thus, if banking institution denies granting loan then there will be no contract in relation
to the purchasing of car.
7. Presenting the implied terms of contract
As per the case of Griffith C. explained this requirement in Young v. Tockassie (1905) 2
CLR 470 at 478 courts impose implied term when following conditions are fulfilled:
 Custom or usage is certain
 Allegation in relation to usage or custom must not be offended by statutory principle
(Lindgren, 2016)
Implied terms used by court in context to the contract differ as per the kind of contract.
For instance: in the sales contract, implied terms are like warranty, condition, guarantee etc. of
purchased goods and services.
In context to the custom implied terms are that, goods and services bought by the person
must be fit and should be in accordance to his purpose. If it is not as per the purpose then
contract can breach.
In the statute, specific or particular incident must be occurred among both the parties like
buyer and seller. Further, the rules and regulations are mandatory to follow at the time of making
contract.
8. Privity of contract
In accordance with the aspect of privity of contract only concerned parties have right to
make sue on related party in the case of default in performance (Adriaanse, 2016). Hence,
individuals who are not part of the contract cannot seek to enforce the contractual terms or
aspects.
9. Presenting circumstances that may result into the discharge of contract
Discharge of contract indicates the cessation of contractual obligations where these
obligations refers to those rights and duties that are being set up by the parties who are mutually
entering into a contractual relationship. In subsequent to which, when these rights and duties are
placed out of their agreed contract, then the contact is said to be discharged (Lindgren, 2016).
One after this, when the contract is discharged, none of the involved bodies are liable towards the
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previously settled obligations. However, there together exists certain circumstances under which
such situation of contractual discharge takes place which includes-
 Discharge of Contract by Replaced Agreement- This is also known as a situation where
the contracts are discharged with a mutual conformity among the parties and they
mutually release their terms or alter the same with full conformity of one another.
 Discharge by delay of time- This is in accordance to the statutory norms of Limitation
Act 1963 on whose basis, a contract can easily get discharged if it is not imposed at a
specific period of time.
 Discharge by Impossibility of Presentation- This is a situation in which a well-established
contract may discharge not due to the fault of any of the parties but due to some natural
occurrences that makes it impossible for the parties to abide by their agreed terms.
 Discharge by Agreement and Approval- Accord and satisfaction are the two main
considerations in such type of contractual discharge. In such type of condition, both
involved parties are expected to accept the performance of their agreed contract which
may differ from the originally assured terms.
 Discharge by contractual breach- This occurs when one party ruptures the agreed terms
of the contract due to a faulty performance where in this situation, a breach may be either
anticipatory or actual. Also, the actual breach is clearly due to a reason where either of
the parties have violated a condition or a warranty of an agreed contract.
 Discharge by performance- This is a way of discharging the overwhelming majority of
agreements among two or more parties.
One can hereby consider referring to a factual case of Cutter v Powell (1795) 6 TR 320; 101
ER 573 to ascertain such circumstances resulting in contractual discharge.
10 Stating the aim of making payment at the time of contractual breach
The present question has intended to state the aim of making payment at the time of
contractual breach where it is mainly in accordance to the legal norms of common law that
compels the suspected party to pay a liable compensation for the damages to the injured party.
This compensation is however in the form of money where it is with a main aim of compensating
the party who has suffered some sort of losses due to the violated norms of an agreed contract
(Hiscock, 2016). It is however with a condition where a loss must be suffered before a party will
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be eligible for indemnities. Herein, the damages are payable only for a foreseeable loss with a
principal aim of defending the suffered party.
11. Presenting Competition and Consumer Act for case evaluation
In accordance with Consumer Act, Emily can demand for compensation in against to the
late delivery of backpack by Kathmandu Adventures Ltd. As per the consumer act, the Emily has
right to rescind the agreement or purchasing backpack from the company. Along with this, Emily
can sue for the compensation of loss which is suffered due to late delivery of product from
Kathmandu Adventures Ltd.
12. Stating the condition mentioned in a given case
Cited case situation presents that, condition precedent exists in the scenario of Simon and
Angela. On the basis of this aspect, contract will be made only when purchaser make payment of
$250000. The contract in which time of the product delivery as well as cost of the item
mentioned then considered as the condition precedent. In the present scenario, also four weeks
and $250000 both stated due to which it is of the condition precedent nature.
13. Summarizing case situation
This section has aimed to summarise a given case situation where on considering the given
case scenario, it can be stated that Ian can sue the publisher of national magazine. Moreover,
according to the contractual aspect, breach was occurred from publisher’s. Thus, Ian is legally
liable to demand for compensation due the occurrence of contractual breach. It is because the
publisher did not provide any prior information about ceasing further publications of Ian and due
to which, he may face several issues. On the basis of this condition, Ian has is legally rightful to
sue the publisher of national magazine for the occurred breach where it also indicated the breach
of express terms in the agreed contract. Referring to a factual case of Rankin v Marine Power
International Pty Ltd [2001] 107 IR 117 which is similar to the present given case of Ian; it can
be stated that Ian has the right to sue the magazine because it unexpectedly stopped printing its
publication without giving a prior notice to him and with no valid justifications as well.
14. Assessing alternative remedies for Susan
This question has been addressed by considering the given case of Susan where she is in
requirement of some alternative remedies. On the basis of the laws and legislation, Susan can
demand for compensation against the ordinary or general damages suffered by her due to the
artist named Kent’s refusal to part with the sculpture. However, in the contract, it was clearly
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specified that Susan will purchase the sculpture from Kent @ $100000. Hence, in this, Kent
refused to purchase sculpture that was previously ordered by her. As per the tax rules and
regulations act, Kent is considered to attempt an anticipatory breach of the contract. Whereas,
Susan has followed all the norms as per accepted terms and conditions of the contract agreed by
both of them. Thus, Kent is obliged to pay a liable compensation for the same to Susan within
the aspect of general damages caused to Susan. Considering a factual case law of Ringrow Pty
Ltd v BP Australia Pty Ltd [2005] HCA 71, there exists two alternative measures for Susan
where she can either sue Kent for the incurred damages or can ask for a partial reimbursement to
Kent that ultimately leads to a mutual settlement among them. Beside this, specific performance
is the foremost remedial approach for Susan.
15. Showing the latest code of practice for conveyancers
Latest AIC code of conduct includes guidelines about the best practices regarding ethical
behaviour that promote the profession of Conveyancing to the significant level. It provides
deeper insight to them about the manner in which they need to govern business and maintain
relationship with the clients (AIC Code of Conduct, 2016).
16. Stating the difference between common law and legislation
Common laws come from precedent, whereas legislation is introduced by the government
authority. Hence, it is one of the main aspects which in turn differentiate common laws from
legislation to the significant level (Poole, 2016).
17. Depicting the legal matter that involves contractual aspects
By considering the case of Keneric Tractor Sales Ltd v Langille (1987) it can be said that
in this situation breach of equipment lease occurred. In this, defendant party had undertaken
farming equipments from Keneric on rental basis. On purchase, Keneric provided lease to the
manufacturer in the form of security. During the mid of lease Langille stopped paying
instalments. Hence, it is considered as contractual breach because Langille failed to act
according to the terms and condition (Walker, Accadia and Costa, 2016). In the case of Keneric
Tractor Sales Ltd v Langille (1987) court gave judgement that contract comes to an end when
one party takes decision in relation to repudiation and other accepts the same (Time Limits,
Breach & Remedies, 2012).
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18. Stating the option available to the concerned party on breach
In the case of contractual breach, three options that are available to innocent party as
follows:
 Demand for damages or compensation
 Specific performance
 Cancellation of contract (Boyle, 2016)
19. Summarizing the aspects in relation to Mareva order
In the case of Mareva order, assets are freeze by legal authority until the final resolution
made by the court. The concept of Mareva order is used by the court in order to freeze their
accounts or assets which are considered by the part. Further, at the time of taking particular
decision, court generally makes ancillary orders for example disclosure of the accounts. The
procedure of decision making in which accounts and assets are freezed then known as mareva
order in the court.
20. Five condition that court applies in relation to contract
Court considers and makes evaluation of five elements before making a contract such as:
 Offer and acceptance
 Legal consideration
 Capacity of parties
 Lawful objects
 Intention for creating legal relationship (Cartwright, 2016)
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REFERENCES
Books and Journals
Adriaanse, M. J., 2016. Construction contract law. Palgrave Macmillan.
Boyle, L., 2016. An Australian August Corpus: Why There is Only One Common Law in
Australia. Bond Law Review. 27(1). p.3.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
Hiscock, M.E., 2016. The Universality of Good Faith and Moral Behaviour: A Challenge for the
Principles of Asian Contract Law. In Legal Thoughts between the East and the West in the
Multilevel Legal Order (pp. 355-367). Springer Singapore.
Lindgren, K., 2016. A time difference between Australia and England: Urban 1 (blonk street) Ltd
v Ayres. Commercial Law Quarterly: The Journal of the Commercial Law Association of
Australia. 30(2). p.10.
Lindgren, K., 2016. A time difference between Australia and England: Urban 1 (blonk street) Ltd
v Ayres. Commercial Law Quarterly: The Journal of the Commercial Law Association of
Australia. 30(2). p.10.
Martin, P., 2016. Contract law: When changes to the law: Affect rights under contract. LSJ: Law
Society of NSW Journal. (22), p.86.
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Walker, A., Accadia, R. and Costa, B. M., 2016. VOLUNTEER RETENTION: THE
IMPORTANCE OF ORGANISATIONAL SUPPORT AND PSYCHOLOGICAL
CONTRACT BREACH. Journal of Community Psychology. 44(8). pp.1059-1069.
Yip, M. and Goh, Y., 2017. Convergence between Australian common law and English common
law: The rule against penalties in the age of freedom of contract. Common Law World
Review. 46(1). pp.61-68.
Yip, M. and Goh, Y., 2017. Convergence between Australian common law and English common
law: The rule against penalties in the age of freedom of contract. Common Law World
Review. 46(1). pp.61-68.
Online
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Discharge of a contract | definition | methods of discharge. 2017. [Online]. Available through:
<http://accountlearning.com/discharge-of-a-contract-definition-methods-of-discharge/>.
[Accessed on 21st June 2017].
Time Limits, Breach & Remedies. 2012. [Online]. Available through: <
http://www.duhaime.org/LegalResources/Contracts/LawArticle-93/Part-8-Time-Limits-
Breach-Remedies.aspx>. [Accessed on 21st June 2017].
AIC Code of Conduct. 2016. [Online]. Available through: <
http://www.aicnational.com.au/about/aims/code-of-conduct/>. [Accessed on 21st June 2017].
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