Term 2, 2019 LAWS11030 Foundations of Business Law Assignment

This business law assignment solution addresses several key legal concepts and cases. Part A analyzes a case regarding contract formation through email, examining the essentials of a contract, the Electronic Transactions Act, and relevant case law like Giblin v Duggan. It discusses the court's decisi...Read More

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

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Part A
Answer 1
The case of Ford & Anor v La Forrest (2001) was heard and the explanations were
provided by the Supreme Court of Queensland. This Court is at the top of the hierarchy chain in
the State of Queensland in the nation of Australia. There are two jurisdictions of this Court, the
original and the appellate jurisdiction. The trial division of the Court hears civil matters in
relation to claims amounting to more than 750000 dollars. Criminal matters which includes
murder and issues under the Corporations Act of 2001, are also heard by the Court. Appeal
matters are also heard by this Court (Stewart, 2013).
Answer 2
The above-mentioned case is a matter of civil case. This case involves a contract. It
involves issues relating to offer and acceptance of contract. The primary issue in the case was
that if an acceptance of offer is made through e-mail, then what shall be the status regarding such
acceptance creating contractual obligations.
In the provided case, the burden of proof is on the appellant, that is, Adele La Forrest,
presently her name is Adele Morrow. Ms. Morrow must prove that based on the circumstances of
the case her acceptance do not create any contractual obligations.
Answer 3
The chief issue in the provided case is that whether binding contract and obligations from
such contract is created when the acceptance of offer is made via e-mail. The legal issues in the
case include the provisions of the Electronic Transactions Act (Cth) of 1999. Section 4 and sub-

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section (1) of Section 8 of the above-mentioned Act has been discussed in this case. The issues
relate to offer and acceptance of a particular media through electronic means.
Answer 4
In the given case, the essentials of a contract are highlighted. The following are
considered to be the essentials of a lawful contract according to the laws of the nation of
Australia:-
 Offer and the Acceptance: The offer shall be certain and must be accepted. The
acceptance of the offer has to be done in an unambiguous and timely manner.
 Intention of Parties: There must be an intention of the parties to enter into an agreement
which shall be lawfully binding. In most cases, the existence of consideration is the
requisite indication for a prevailing contract.
 Consideration: The consideration of a contract is the worth rewarded for the promise
made by the other party. Consideration do not mean cash or money in all the scenarios. It
could be any interest, or some right or profit.
The law states about the lawful capacity of the parties to enter into a contract. A contract
must not be for an unlawful purpose and it shall be in conformity with the essentials (Frey,
2015).
Answer 5
The case law of Giblin v Duggan was used as a reference in the given case. The Court
stated that in the Giblin case it was held that when a letter is a response to a warning of
proceedings, then such letter will not be considered as a conclusion to the actual contract. It may
be considered as a general declaration made with an intent to admit liability. The Court also

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mentioned the case of Newton, Bellamy and Wolfe in order to provide the distinction between the
Giblin case and the Newton case.
Answer 6
In the given case, the main issue of contract was that if an individual made an acceptance
through e-mail, then would such acceptance give rise to a relationship based on contract. The
Court passed an order according to the Electronic Transactions Act (Cth) of 1999. The provision
of sub-section (1) of section 8 of the Act mentions that a particular contract cannot be made
invalid simply because the contract was created with the help of any electronic media or
communication. Applying this provision the court decided that the parties to the contract had
reached an agreement which is binding upon them and the principles of a valid contract shall be
applicable.
In the case, the statement of ‘prepared to accept’, made by Ms. Morrow in a reply to the
mails to the respondent parties is not considered as only an intention. It was a declaration by Ms.
Morrow stating the fact that the liability has been accepted by her. This was considered by the
Court as an acceptance by the appellant for the offer made by the respondents and therefore, it
constitutes a contract (McKendrick & Liu, 2015).
The utilization of the statutes in the case might be hostile towards the business
transactions. The business organizations deal in great many transactions each and every day. The
decision of the Court in the provided case might be problematic for the business houses. In the
corporate world, generally all the contracts are written and printed exclusively. The business
world avoid transactions and contracts which have no written evidence. The contracts in the
business sectors involve huge amounts and therefore for safety purposes all such transactions are
done by written and manifested contracts. Oral contracts are strictly avoided. However, in this

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case the Court allowed an agreement that was done through e-mail with the help of an electronic
media, to be a binding contract. A business organization manages the operations through e-mails
and electronic media. Not all of them conclude to be contracts or agreement. Hence, the decision
in this case is not in favor of the business organizations as any individual or association may
refer the decision of this case as an example of the fact that contracts are binding even when
there are no written evidence of such agreements.
Answer 7
In the provided case, the Court stated that the contract between the appellant and the
respondents is binding even though it was done electronically, as it had all the necessary
requirements of a valid contract.
Depending upon the circumstances of this particular case it can be said that the result of
the case was just and fair. The appellants and the respondents of this case agreed to compromise
and settle their dispute. The appellant agreed to the terms of the settlement by sending an e-mail
to the respondents. Later, the appellant decided not to settle and tried to justify that her reply to
the respondents through mail cannot be considered as an acceptance to the offer by the
respondents. However, the Court disagreed and stated that based on the series of negotiations,
the words in the e-mail sent to the appellant by the respondent constituted an offer and the words
in the reply to the mail that was send by the appellant to the respondents constituted an
acceptance. The consideration between the parties was the promise to not move forward with the
appeal and to bare the imbursement of their own expenses. Hence, it can be said that the decision
forwarded by the Court is just and fair to allow the settlement agreement among the parties.
It may be acknowledged from the outcome of this case that transactions which are not
exclusively codified or manifested can also be considered as contracts if such transactions have

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the necessary elements of a valid contract. This situation is also possible in the business world in
case of corporate transactions. Hence, such business transactions must be dealt with accordingly.
Part B
Answer 1 (a)
Issue
The issue in this case is whether the contractual agreement can be enforced by Sally
against Margaret.
Rule
The rules provided in relation to a valid contract states that a contract will be considered
to be a valid one only if the essentials of a contract are fulfilled. The essentials of a valid contract
are the parties to the contract, offer and acceptance in relation to the contract, consideration of
the parties to the contract, lawfulness of the contract and lawful purpose.
The rule provided in the case of F.Y.D. Investments Pty Ltd v Promptair Pty Ltd (No 2)
[2019] states that a party can claim damages for any breach of contract committed.
Application
In the given case, Margaret is a successful owner of a shop in Brisbane that deals in
antique furniture. In the year of 2017, Margaret requested her daughter, whose name is Sally, to
work in the shop without any kind of payment for a period of three years and after three years the
ownership of the shop and the stock shall be transferred to Sally by Margaret. However, after a
heated argument between Margaret and Sally in the month of June in the year 2019, Margaret
sold the business to Ben, a regular customer, without any kind of warnings to Sally.

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Applying the rules of a valid contract it may be stated that the agreement between
Margaret and Sally constituted a valid contract as it had all the necessities of a valid contract.
Applying the rule provided in the F.Y.D. Investments Pty Ltd v Promptair Pty Ltd (No 2)
[2019] case law, Sally may claim compensation from Margaret for the violation of the terms of
the contract.
Conclusion
To conclude it might be said that Margaret is liable to compensate Sally because
Margaret violated the contractual terms between them.
Answer 1(b)
Issue
The primary issue in this case is what are the rights that fletcher has against Stan.
Rule
The rule as provided in the case of Lucas v Zomay Holdings Pty Ltd [2019] states that
damages shall be paid to the party for disingenuous and deceiving conduct by the party who
committed such a fraud.
The rule of the case of Alati v Kruger (1955) states that an individual may rescind a
contract when fraud and misrepresentation has been committed by the other party.
Application
In the given case, Fletcher was an individual who was not literate, was suffering from
health issues and had limited knowledge about businesses. Fletcher relied on his best friend Stan
who was also his trusted lawyer and advisor. A document was signed by Fletcher which
according to Stan was merely a permission for keeping cows and horses for some time.

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However, later Fletcher discovered that the document was actually a transfer of ownership of the
land in the name of Stan.
Applying the rule of the case law Lucas v Zomay Holdings Pty Ltd [2019], it might be
said that Fletcher shall have the right to claim compensation from Stan because Stan committed
fraud and his conduct towards Fletcher was deceptive and misleading.
Applying the rule as mentioned in Alati v Kruger (1955), Fletcher shall have the right to
rescind or cancel the contract due to fraud and misrepresentation being committed by Stan.
Conclusion
To conclude, it might be stated that Fletcher will have the right to claim compensation
and the right to cancel the contract as fraud and deception was committed by Stan.
Answer 2 (a)
Issue
The main issue in this case is that whether Susan will be able to obtain any remedy
according to the Consumer Law of Australia.
Rule
The rule in the case of Lucas Earthmovers Pty Limited v Anglogold Ashanti Australia
Limited [2019] is that any conduct or action of an individual or an association that is
misrepresentative and deceptive in nature and contradictory to the section 18 of the Australian
Consumer Law shall be prohibited by law.
The rule as provided in the case of Lucas v Zomay Holdings Pty Ltd [2019] states that
damages shall be paid to the party who suffered due to the misleading and deceiving conduct by
another party as opposed to section 18 of the Australian Consumer Law (ACL).

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Application
In the given case, an agreement was made between Sydney Cleaners Pty. Ltd (SC) and
Susan regarding the cleaning of the wedding dress of Susan. A receipt was given to Susan by the
sales assistant which was a confirmation of the agreed price for the cleaning. Unbeknownst to
Susan, at the back of the receipt was a very tiny printed term stating that SC cannot be held
accountable for any damage caused to any dry-cleaned item. The dress of Susan was terribly
burnt while returning it to her. The sales assistant mentions it to her that the contractual term that
is provided at the back of the receipt precludes any customer to sue SC.
Applying the rule as stated in Lucas Earthmovers Pty Limited v Anglogold Ashanti
Australia Limited [2019], it can be said that the dry-cleaners did not clearly inform Susan about
the terms provided at the back of the receipt which can be very hard to miss as it was provided in
a very tiny manner. By not informing Susan about the terms, the dry-cleaners committed the act
of deception and misled Susan, in contravention of the provisions provided in section 18 of the
ACL.
Applying the rule as provided in the case of Lucas v Zomay Holdings Pty Ltd [2019], the
party who suffered damages due to the misleading and deceptive actions of another, shall be able
to extract compensation from the other party who committed the fraud.
Conclusion
In conclusion, it might be stated that Susan shall be able to extract damages from the
dry-cleaners.

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Answer 2 (b)
Issue
The main issue in the given case is that whether an action can be brought against Uncare
and whether remedies can be obtained under the Australian Consumer Law (ACL).
Rule
The rule in F.Y.D. Investments Pty Ltd v Promptair Pty Ltd (No 2) [2019] states that any
misleading and deceptive action or conduct shall be in contradiction of the ACL.
Section 18 of the Australian Consumer Law states that any behavior or action of an
individual or an association that is misleading or deceptive towards another shall be in
contradiction to ACL and prohibited by law.
Application
Uncare is an organization that manages and operates care centers all over the nation of
Australia. In the year of 2018, this organization made a promise to all the customers that much
better and additional services shall be provided to them. Extra fees were charged in the name of
the additional services. However, later it was discovered that not all the centers had these
facilities and services.
Applying the rule of section 18 of the ACL in the given case, it might be said that Uncare
organization had made a promise to its customers which was not true. Hence deception and
misleading has been committed by the organization.
Applying the rule provided in the case F.Y.D. Investments Pty Ltd v Promptair Pty Ltd
(No 2) [2019], it can be stated that the actions of the organization was deceptive and misleading
and contradictory to the Australian Consumer Law.

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Conclusion
In conclusion, it might be mentioned that an action can be brought by Australian
Competition and Consumer Commission (ACCC) against the Uncare Organization and remedies
shall be provided to the ACCC regarding the aged populace.

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References
Alati v Kruger (1955) 94 CLR 216
Australian Consumer Law (ACL)
Electronic Transactions Act, 1999 (Cth)
F.Y.D. Investments Pty Ltd v Promptair Pty Ltd (No 2) [2019] FCA 419
Ford & Anor v La Forrest (2001) QSC 261
Frey, M. A. (2015). Essentials of contract law. Cengage Learning.
Lucas Earthmovers Pty Limited v Anglogold Ashanti Australia Limited [2019] FCA 1049
Lucas v Zomay Holdings Pty Ltd [2019] FCA 830
McKendrick, E., & Liu, Q. (2015). Contract Law: Australian Edition. Macmillan International
Higher Education.
Newton, Bellamy and Wolfe v SGIO (1986) 1 Qd R 431
Stewart, A. (2013). Stewart's guide to employment law. Federation Press.