BSBLEG415 - Applying Principles of Contract Law - NBI Australia

This assignment provides a comprehensive overview of contract law principles, covering key aspects such as the importance of establishing contract terms, the six elements required for contract formation, the differentiation between conditions and warranties, and the distinction between offers and invitations to treat. It also explains the postal rule, defines condition precedent with examples, and presents the implied terms of a contract. Further, the assignment discusses privity of contract, circumstances leading to contract discharge, the aim of damage payments upon breach, and the application of the Competition and Consumer Act for case evaluation. It summarizes a case situation involving a magazine publisher and assesses remedies available to parties in breach, referencing the AIC code of conduct for conveyancers and differentiating between common law and legislation. The document also depicts a legal matter involving contractual aspects, options available upon breach, aspects of a Mareva order, and five conditions courts apply in relation to contracts. Desklib offers this assignment and many more resources for students.

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...................................2
11. Presenting Competition and Consumer Act for case evaluation...........................................2
12. Stating the condition mentioned in a given case...................................................................2
13. Summarizing case situation...................................................................................................3
14. Assessing alternative remedies..............................................................................................3
15. Showing the latest code of practice for conveyancers...........................................................3
16. Stating the difference between common law and legislation................................................3
17. Depicting the legal matter that involves contractual aspects.................................................3
18. Stating the option available to the concerned party on breach..............................................4
19. Summarizing the aspects in relation to Mareva order...........................................................4
20. Five condition that court applies in relation to contract........................................................4
REFERENCES................................................................................................................................5

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.
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
It implies for the aspects that must be fulfilled before the formulation of contract. For
instance: Individual who 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.
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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)
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
Condition in relation to discharge of contract occurs when associated parties failed to
perform as per the specified terms and conditions. Hence, according to Australian law, contract
can be discharged by the concerned parties in the following way:
 By operation of the law
 By frustration
 Through the breach of contract
 By agreement (Lindgren, 2016)
10 Stating the aim of making payment at the time of contractual breach
Main motive behind making payment of damages is to avoid the situation or possibility
of termination to a great extent (Hiscock, 2016).
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.
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12. Stating the condition mentioned in a given case
Cited case situation presents that, condition precedent exist in the scenario of Simon and
Angela. On the basis of this aspect, contract will be made only when purchaser make payment of
$250000.
13. Summarizing case situation
By considering the given case situation, it can be stated that Ian can sue on the publisher
of national magazine. Moreover, according to contractual aspect breach occurred from the side
of publisher. Thus, Ian has right to demand for compensation due the occurrence of contractual
breach.
14. Assessing alternative remedies
On the basis of the laws and legislation, Susan can demand for compensation in against to
the ordinary or general damages suffered by it. Moreover, in contract it is clearly specified that
Susan will purchase sculpture from Kent @ $100000. Thus, Kent is obliged to give
compensation of same to Susan under the aspect of general damages.
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
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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).
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.
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.
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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
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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