LST2BSL Business Law Assignment: Sources, Contracts, and Ethics

This essay provides a detailed analysis of business law within the Australian legal system. It begins by defining business law and its significance, followed by an exploration of the sources of law, including both statute and common law, with specific examples like the Taylor v Johnson case. The essay then delves into contract law, outlining the essential elements for contract formation, ethical considerations, and the roles of offer, acceptance, and consideration. It references the Carlill v Carbolic Smoke Ball Co. case to illustrate ethical offer practices. The essay further examines the different types of contracts and the legal remedies available for breach of contract, such as damages, injunctions, and specific performance. Finally, it concludes by summarizing the key aspects of the Australian legal system and its impact on business operations, emphasizing the importance of ethical standards and legal compliance. The essay also touches upon the role of alternative dispute resolution methods like arbitration.

COMMON LAW ASSIGNMENT

Contents
BUSINESS LAW..................................................................................................................................3

BUSINESS LAW
Business law refers to the body of laws which is regulated to manage and control the
activities in the business. In refers to business laws which is designed by the Australian
government to manage and control the activities in business. Laws are morally imposed in
respect of managing the social, cultural and economic factors which resulting in adapting the
change in right manner1. In this essay the discussion is based upon the sources of law and
also its perspective of managing the business entities in better way. It also carries the forms
of contract which is made between the parties and also they are legally bound to follow the
contract as per the set terms. It also stated that ethics is to be maintained in the business
regarding not committing breach in any of the terms which is imposed under the contract act.
Laws are mainly imposed upon the business in respect of securing the right of the
parties to deal in any type of transaction. In modern times, it is Necessary to amend the laws
due to changes in time and thus by this aspects ethical standards are to set which they had to
achieved within the stipulated time period2. As it is not proven that every person entered in
the business are in favor of performing the contract as per the set indication. Thus breaches
raised in respect of performing the contract with the set terms. In respect of sources of law, it
is stated that it carries two forms such as statue law and common law. In context of common
law, it stated that the judges interpreted the decision on the bases of referring the previous
cases and then accordingly the decision is passed3. In respect of statue law, it is stipulated that
they refers the judgment by viewing the laws mentioned under the constitution. Usually in
case of business, they had to follow the legislation mentioned under the corporation act,
2001.
This is explained with the case of Taylor V Johnson (1983) 151 CLR 422 as in this
case the issues is raised regarding entering into the false agreement with Johnson regarding
purchasing the land for the particular amount. But due to carrying confusion in respect of
deciding the amount, Johnson refuse to perform the contract4. Taylor demands for the specific
performances of the contract but due to carrying mistaken about the amount. The contract is
repudiated and also new contract is formed in which both the parties mutually decide to enter
into the contract as per the new norms or standards.
In respect of undertaking the matters of the jurisdiction, it is stated that the every
terms whatever implied and express terms are equivalent in the eyes of laws and thus the
1 Allen, D., & Blackham, A. (2018, June). Confidentiality and Settlement: Uncovering
the Hidden Secrets of the Enforcement of Equality Law in Australia and the UK.
In Berkeley Comparative Equality & Anti-Discrimination Law Study Group 2018
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2 Gardner, J., & Kariyawasam, K. (2019). Online Auctions and Consumer Protection in
the United Kingdom and Australia: The Value of Transparency.
3 Gray, A. (2019). Sponsor pressure to discipline employees who have unexpressed
unwelcome views and reform of the business torts in Australia. Australian Business
Law Review. 47(5). 349-363.
4 Di Lieto, G., & Treisman, D. (2018). International Trade Law. International Trade
Law, Textbook published by The Federation Press, Sydney (Australia).

person can file the suit under both the terms in case of infringing their rights. As jurisdiction
carry the power to hear the matters which is related to civil and criminal matters5. In terms of
legislation, it is stated that the federal courts carry the rights to hear the cases in which the
infringement of the federal cases are stipulated.
Ethical standards are applied to the business in respect of entering into the valid terms
and agreement. In respect of Contract Act, the parties must enter into the agreement regarding
entering the contract in respect of making an offer on particular things and other person is
accepting the offer6. It is necessary that the parties must be competent to handle the contract
and such contract is made with the mutual consent. The contract must be made on the bases
of consideration. In this case, ethics reflects in the terms of contract act. As it is necessary for
the both the parties to follow the essential elements which is required to make the contract
valid. As offer is to be made to the parties in ethical way. This is presented through
examining the respective case as Carlill V Carbolic Smoke Ball Co. as in this case the
company offer to buy the balls through the mode of advertisement and thus in respect of
getting benefits of such purchase, Carlill deal to buy the balls. But after using the balls, he
suffered with the diseases. Carlill file the suit in the court regarding claims for the damages in
respect of hiding the real situation which is undertaken after using the products.
In respect of acceptance of the offer, it is stated that it is necessary to communicate
the offer before entering into the contract. The offerror carry the right to terminate the
contract before they gets acceptance from the offerree regarding carrying forward the contract
on the stipulated terms of contract7. The parties cannot claim for the damages, if the time
period of the contract is expired or also made on the bases of counter offer. This indicates that
the other part demand to counter offer the contract on the bases of their respective terms
which they stipulated upon the contract. This refers to the ethical standards which is imposed
upon the business regarding working under the norms stipulated by the government.
In respect of oral forms, the contract is not valid if both the parties orally decide to
exchange some valuable things with each other or promise to pay the money in future. In
terms of laws such contract are not valid and also no person imposed any of the remedy
regarding getting justice on particular case. If any of the party mutually decide whether to
carry the contract in future perspective or not, than it refers to be ethical. Ethics in laws terms
refers the matters which are legally and bound upon the party to follow under the guidelines
mentioned under the contract act8. As it is tough to impose any laws in the country, as before
imposing any laws, it is necessary that bill is to passed regarding making any new laws which
is necessary in the business. It is duty of the public authorities to inspect the changes and then
5 Miller, R. L. (2016). Business Law Today, Comprehensive. Cengage learning.
6 O'Brien, L., Ramsay, I., & Ali, P. (2018). The hidden dimension of business
bankruptcy in Australia. Australian Business Law Review. 46(5). 291-306.
7 Long, Z., & Huang, S. (2019). A Comparative Study of Transfer Pricing Taxation
System between China and Australia. Journal of Chinese Tax and Policy. 5(1).
8 Chen, X. & et.al., (2018). The Effect of Sanctions on Continuous Disclosure Under
the Responsive Enforcement Strategy: Evidence from Australia. Available at SSRN
3221640.

pass the bill to the further committee9. The stability of the bill depends upon the voting which
is undertaken in the committed and after finalizing the bill and also gets approval from all the
committee, the bill is signed by head of the government.
Similarly in case of remedy which is imposed regarding resolving the issues which is
arising in the country is relating to the damages or injunction or imposing specific
performances of the contract. In case of common law remedies, it is imposed in respect of
paying damages to compensate for the losses incurred10. Through this manner, it indicates
that the defendant are liable to pay the actual damages in respect of breach committed. It is
necessary that in mostly cases the court decide the amount of damages to be paid to the
plaintiff. The plaintiff also carry the right to terminate the contract with the stated terms and
such termination is mainly undertaken regarding not facing any issues in adapting the work11.
As the right of terminate is mainly carried by the parties whose rights are affected in respect
of not performing the contract as per the set terms.
Injunction is the legal remedy which is mainly provided by the courts after getting
suggestion from the parties whose rights are infringed. If any of the party not perform the
contract and also not complete the order which is set in the contract or the issues is raised in
respect of entering into the contract with the third party12. The other party carry the right to
place injunction regarding stopping the party to perform the contract. They can also demand
for the specific performance of the contract, if the contract is necessary to be fulfilled as per
the terms of the plaintiff.
The legal issue which is raised is relating to the not resolving the issues between the
parties or it carries the costly and time consuming procedure. Thus, in such cases court
demand to take the services which is provided out of court such as in case of appointing the
arbitrator to settle the matters. The decision which is provide by arbitrator is also bound upon
the person and also after their rewards, no person can further reach to court for not satisfying
the arbitrator decisions13. Thus, through this manner, they can resolve the issues in better
manner and also can save the time and cost regarding spending for further cases.
9 Uddin, N. (2019). Rahul K. Gairola PhD (University of Washington, USA) is The
Krishna Somers Lecturer in English & Postcolonial Literature in the College of Arts,
Business, Law, & Social Sciences and a Fellow of the Asia Research Centre at
Murdoch University in Perth, Western Australia. He is the author of Homelandings:
Postcolonial.
10 Benjamin, J & et.al (2018). Underwater archaeology and submerged landscapes in
Western Australia. Antiquity. 92(363).
11 Brown, E. F. (2016). Lessons from efforts to manage the shift of pensions to defined
contribution plans in the United States, Australia, and the United Kingdom. Am. Bus.
LJ. 53. 315.
12 Eagle, L., McCarthy, B., & Low, D. (2018). Winds of change: a study of the
acceptability of renewable energy in regional Australia.
13 Clarkson, K. W., & Miller, R. L. (2020). Business law: Text and cases. Cengage
Learning.

From this essay, it concluded that the Australian legal system impose the judgment on
the bases of referring the case through the common law or statue law. As in context of
business, it is stated that the laws are imposed in respect of working under the set norms
mentioned under the Corporation act, 2001. It is discussed that ethical standards are to be
maintained in respect of entering into the contract. It is necessary to offer some valuable
things to another person and the other person accepts such offer. The offer must be made on
the bases of consideration. Various legal solution are given to the parties regarding resolving
the disputes in better manner.