Business Law Case Study: Agency Agreements, Contracts, and Sales Act

This assignment presents three case studies related to business law. The first case examines an agency agreement between Gagan and Ron, focusing on the possibility of contract termination and the implications if Ron were Gagan's father. The second case involves Stanley's attempt to sell equipment via tenders, analyzing which party (Sarah, George, or Peter) has a valid contract based on offer and acceptance principles. The third case explores a breach of contract under the Sales of Goods Act 1954, where Marine Designs Ltd failed to deliver boats on time to Ocean Tours Company, resulting in significant financial losses. The analysis determines liability and potential compensation for the affected parties. Desklib offers students access to these types of solved assignments and past papers for educational support.

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Table of Contents
Case Study 1....................................................................................................................................2
Case study 2.....................................................................................................................................4
Case study 3.....................................................................................................................................5
References........................................................................................................................................7

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Case Study 1
ISSUE
The main issue in the given case is that Gagan was in an agency agreement with Ron who
would act as her agent and help her in becoming popular by managing and promoting her talent.
In return he would get 75% of her income. The contract would last for 10 years. Three years
later, she realizes that she does not need his help anymore and she wishes to terminate the
contract.
Hence, it has to be examined whether this is plausible under the Agency Law and
Agreement. Furthermore the situation needs to be assessed if the agent was her father.
RELEVANT LAW
The relevant law in the given scenario is the Agency Agreement. The agency agreement
guides the relationship and contract between the agent and the principal (Agentlaw.co.uk. 2018).
There are various ways in which the contract between an agent and a principal can come to an
end.
APPLICATION
For the given scenario, there are two situations in hand. The contract between Rob and
Gagan can come to an end in the two given scenarios:
By notice
The agency act can come to an end when the principal sends a legal notice to the agent
stating that the contract can come to an end after a certain period.

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By the Act of the Parties
Under this section, by revocation by the principal, Gagan can end the agreement at any
point of time. However, since the given act is unilateral in nature, this may serve as a breach of
contract. In such a case a notice needs to be sent.
CONCLUSION
Hence, Gagan needs to either a notice or needs if she decides to revocate the act, it may
count as a breach of contract. Therefore, she will not be successful in terminating the contract
easily. Had Rob been her father, the case of a contract would not have binded them, which would
have contributed to an end of their mutual agreement easily.

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Case study 2
ISSUE
In the given scenario, Stanley decided to sell his equipment’s for a sum of 20000$ and
thus, he planned to give away tenders to three different parties. The tender was sent at different
dates and when Sarah tried to confirm by the contract verbally, the call got disconnected. When
George tried to send him a written acceptance then, he could not receive it and with Peter he
agreed to get into the contract with Stanley.
RELEVANT LAW
Hence, under the terms of a legal contract, the three crucial elements need to be present:
Offer: The seller of the contract needs to make an official offer with all terms laid down in the
agreement.
Acceptance: The buyer of the contract needs to accept the contract in written response.
Written agreement: There needs to be a written agreement to validate the contract
(Business.gov.au. 2018).
APPLICATION
According to the given scenario, Peter can be deemed to be the probable acceptor of the
chosen contract because his deal with Stanley abided by all important aspects of the contract and
the written obligations have been followed.
CONCLUSION

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Hence, the verbal contract with Sarah does not stand valid as it wasn’t confirmed.
Secondly, as George’s response did not reach Stanley, it cannot be accepted and lastly, Peter
would be the correct alliance as all the essential elements of a contract have been abided by.
Case study 3
ISSUE
In the given case study, the Yacht Company, Marine Designs Ltd had to deliver the boats
for the Ocean tours company by the 15th of June so that it is able to engage in the whale tour.
However Marine Designs Ltd could not deliver the boats on time and delivered them post the
season due to which the Oceans tour company underwent a huge loss of approximately 20000$.
Furthermore, it lost a personal client as well which further estimated up to a loss of $32000.
Hence, in this scenario The Sales of Goods Act 1954 has been breached.
RELEVANT LAW
Under the section 4 of the Sales of Goods Act, 1954, it has been given that in case any of
the parties are Unable to act under the Performance of the contact then it is taken to be as a
breach of contract (Legislation.act.gov.au. 2018).
APPLICATION
In the given scenario, the goods were neither delivered on time and they were delivered
according to the wrong specification. Hence, this is a case of non-performance on the side of the
Marine Delights Ltd and they are liable to get the goods rejected by the Ocean tourist Pty Ltd
and may be compensated for a breach because of the loss borne by the Tourism company.
CONCLUSION

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The Marine Delights Ltd is at a fault in the given scenario and hence, they must
compensate to the tourism company and the Oceans Company has a right to reject their goods.

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References
Agentlaw.co.uk. ,2018. Australia. [online] Available at:
http://www.agentlaw.co.uk/site/global/Australia.html [Accessed 26 Jun. 2018].
Business.gov.au. ,2018. Types of contracts. [online] Available at:
https://www.business.gov.au/info/plan-and-start/start-your-business/independent-contractors/
understanding-contracts/types-of-contracts [Accessed 26 Jun. 2018].
Legislation.act.gov.au. ,2018. [online] Available at: http://www.legislation.act.gov.au/a/1954-
15/current/pdf/1954-15.pdf [Accessed 26 Jun. 2018].