Commercial Law 12: Australian Commercial Law Assignment Report

This report provides a comprehensive analysis of Australian commercial law, examining key concepts and legal principles. It begins with an overview of Hart's analysis of legal systems, differentiating between primary and secondary rules and their application within the Australian context. The report then delves into Australian contract law, discussing issues of genuine consent and the application of contract law principles, with a focus on the case of Rogers v Whittaker. Finally, it presents a business case involving a coal supply contract, exploring issues of frustration and mutual obligation. The analysis incorporates relevant case law and legal concepts to provide a thorough understanding of the subject matter.

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Australian Commercial Law

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Table of Contents
Part A:..............................................................................................................................................3
Part B:..............................................................................................................................................5
Part C Common Law.......................................................................................................................8
Part D Business Case.....................................................................................................................11
References......................................................................................................................................13

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Part A:
The rules for the new group as well as new tribe can be enforced with the help of Hart’s analysis
within the legal system of Australia. Hart has divided the rules into two main categories which
include primary rules as well as secondary rules. Primary rules require specific actions that help
to generate obligations of duties. As per the primary rules, a citizen is obliged to follow the rules
of their tribe in some specific manner (Turner and Trone, 2017). These rules have the moral
obligations as well as systematic quality that enable the people to follow the moral values in
order to make demand insistent for the conformity. These rules also enforce etiquette rules and
speech rules that help to maintain social life within the community which also avoid any conflict
that can be raised in between the new group and their tribe as per the given context.
Further, secondary rules help to set the procedures or legal processes using which all primary
rules could easily be enforced, modified or introduced within the legal system. These rules are
considered as significant rules for the society and without these rules; society will face severe
threats or challenges in their lives. Without the secondary rules, there will be so many challenges
as analysed by Hart which includes,
 There will not any systematic method to create rules for the society that will create the
uncertainty about the objectives or purposes for the rules.
 Without these, legal system will become static in nature that makes changes within the
rules to be occurred organically (Turner et al, 2016).
 Inefficiencies will be raised without a predefined adjudication method over the fact
that actually rules are broken or not under the legal system.

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All the above problems or challenges can be overcomes or remedied using the different rules
including adjudication rules, change rules as well as recognition rules with reference to the
Australian legal system.

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Part B:
Hart’s analysis is one of the major contributions in enhancing the modern legal system of
Australia. Hart’s analysis on the legal system is mainly based on two categories which includes
primary rules as well as secondary rules. In order to enforce the above rules, different methods
have been used in the Australian legal system for reducing the challenges or issues as per Hart’s.
The legal system of any country mainly based on three concepts of Hart’s. This includes change
rules, recognition rules as well as adjudication rules (Thampapillai et al, 2015). All the three
rules play their significant role in establishing significant legal system. These rules are important
aspect of the secondary rules as described by Hart which mainly help to set the procedures or
legal process through which different primary rules could be easily introduced, modified or
enforced within the legal systems.
Recognition rules are formulated to counter the uncertainty as well as vagueness for the
traditional laws. This rule mainly provides some explicit aspect or criteria in order to determine
the significance for the primary rules as described by the Hart’s analysis. It is also considered as
the most significant rules among all the three rules as described in the concepts of Hart. This rule
mainly identifies the legal status for the different constitutional documents, common laws,
parliament acts as well as other different sources for the legal authorities (Clarke et al, 2017).
This mainly existed in the complex form but concordant by nature, practice for the courts,
private persons or officials in order to identify laws using the specific criteria. These types of
rules are not generally in the written form with reference to the legal system of Australia. At the
same time, this also defines the validity for the different laws in the Australian legal system.
Change rules are significant during the invention, extinction as well as amendment of different
primary rules. This also defines different process or procedures for amending or changing the

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rules in the legal systems. These types of rule are mainly used in the conditions of evaluation that
is also called as correspondence for the conduct of order in legal manner under the system.
Judicial activities and court ruling are some of the important examples for the change rules
within the Australian legal system. This type of rules can be private or public depends on the
legal conditions as per Hart’s criteria. The rule also defines the ways by which changes in the
laws could be made under the legal standards or process.
Adjudication rules are also significant aspect for the Hart’s analysis through which society,
culture, jurisdiction or territory may ascertain regarding the fact when there would be violation
or breach and at the same time, also prescribe remedial measures in order to deal with the legal
issues or challenges (Turner et al, 2016). This rules mainly focused to set judicial institutions like
courts in order to determine guilt or to interpret the statutes.
(Source: Turner et al, 2016)
On the basis of Hart’s analysis, Australian legal system generally compassed with several
features that make it more unique and reliable among the citizens. This includes,
 The legal system of Australia is one of most unique and common law system all across
the world.

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 The legal system of Australia is adversarial system which provides equal opportunities to
the citizens to protect their legal as well as moral rights (Turner et al, 2016).
 The legal system is also consists of specialized hierarchy for the courts which enable to
protect moral as well as social rights of the citizens whether from Australia or any other
country across the globe.
Further, this also describes other features as well which includes moral rules feature that is the
notion for obligation or laws. The legal system enables the individual to follow the moral rules in
order to make demand insistent for the conformity (Thampapillai et al, 2015). In addition, the
legal system is also encompassed with systematic quality which generally depends over
secondary as well as primary rules as described in Hart’s analysis for the legal rules. This system
also enforces speech and etiquette rules that help to maintain social like within the community as
witnessed from the legal system of Australia.

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Part C Common Law
Issue:
Australian Contract Laws is evidenced by the common law in Australia that is concerned to the
interest protection of consumer in case of any disputes and matters of conflicts between the two
parties. Basically, Australian contract law is evidenced from the English legal system that
provokes to the responsibilities and duties of two partners in terms of contract principles that
enforce the parties to fulfill the promises of underlie contract (Humanrights, 2013). Under the
Australian contract law there are two major problems that are encountered by the parties such as
accessibilities and uniformities under the variant consideration of contract law while following
the general principals of contract.
In this part, the issue is raised for the genuine consent of parties to enter into the contract and
perform the duties according to the agreement of contract law under the statutory legality system
of Australia constitution (Lawsociety, 2012). Many times it becomes an issue between the parties
where one party does not take any confirm assent of against party who is ready to perform the
contractual binding.
Case: Rogers v Whittaker (1992) is related to the genuine consent in which a health professional
and patient are involved. It dictates that the health professional has not performed his duty to
inform the patient about the risk due to the treatment and he has not taken any consent from the
patient (Australiancontractlaw, 2016).
Rule:
Contract law is a rule under the legal system of Australian statutory law which integrates the
interest of two parties for performing duties and responsibilities for the result of successful
accomplishment of perceived contact under the legal procedure of

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Contract law is concerned to the five principals that are the legal boundation for parties to come
under the law of contract and these five characteristics of laws are considered the roots for law
formation and come into a contract through performing duties of a party. Five principals of
contract law are as agreement, consideration, and intention to create legal relations, capacity and
formalities. Where, agreement is the first one that includes the formation of a legal contract
under the legal statutory body of Australia, it consist two aspects as offer and acceptance by the
mutual co-ordination of both parties. Second is consideration which insists the monetary
transaction for the exchange of service and products between the two parties because without
worth full exchange the principal is dumped by the legal system.
Under the genuine consent of both the parties to involve in an agreement to perform liabilities in
order to successful contract law is essential to being informed with every action.
Given case of genuine consent of the parties to enter into the contract or not is termed as issue
for the parties where one party has involved another party to proceed under legal process. In
order to outcome, court applies the principals of contract law to perform the duties of default
party.
Application:
The Australian court apply the contract law in relation to the conflicts arises between the parties,
where one party is not performing the duties that leads to the successful contract. As per the
court decision, parties are bound to perform the responsibility and action that is misleader by
party with the intention to come into contract and being active partner. On the other hand,
contract may also be discharged by the several reasons like, agreement, breach and frustration of
one party, if it is proved by the high court of Australia under the provision of high court.

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Australian high court applied the consideration of genuine consent over the health professional in
the case of Rogers v Whittaker (1992), to once inform the parties that the particular treatment
may be risky for your body and can influence its health to creating else disease (Lawhandbook,
2013). High court said that the health professional has not performed his duty to awaking the
patient about the attached risk.
Conclusion:
On the basis of above case of Rogers v Whittaker (1992), it is concluded that the health
professional is responsible for any injury of patient. If the client has not felt any health issues
than its warning to take any decision of providing medicine or treating with the fully informed
and consent of against party.

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Part D Business Case
Issue
In the given case of Ram (Coal Mine Owner) Betty (User), it is contracted that the Ram would
supply the 400 tons of coal to Betty for ten years which is starting from 2014 to 2024. Basically,
Betty uses the coal in his steal works. The contract was proceeding easily but after two years of
contact, problem occurred with the coal mine business due to heavy rain. Further, the Ram was
unable to supply for the coals to Betty after 31sy July 2016 because the mines are flooded due to
rain and the supply of coals cannot be made from August to December. Regarding to this, Ram
(Coal mines owner) has informed the Betty that due to the reasonable issues he was unable to
supply for the coals.
In the case of Gold Group Properties Ltd v BDW Trading Ltd has happened same, where Gold
Group Properties was unable build flats due to the economic downward in market price of
property and contract was terminated by the frustration (Lexology, 2010).
Rule
Under the contractual binding, there are some legal obligations that are need to be determined
while contracting with another party to being applicable for the liability and duty to perform.
Under this case, the principal of mutual obligation arises in which the both of the parties are
responsible to perform his or her duties as per the contract legal formation. Along with this, the
contract has also the principal of valid enforceable; under this offerer and ofree should treat the
agreement consideration to perform arisen liabilities.
Valid enforceable contract is the mutual contractual formalities between the parties and law
enforces the parties to come over the liabilities and perform the duties in concern to the valid

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enforceable contract. An enforceable contract, as per the legal boundation should be valid under
this all the formalities have been done according to the contractual agreement.
Application
Valid enforceable contract is considered the legal boundation of both parties to perform the
duties of as per the contract (Bailey, 2016). At the same time, Betty can appeal to the court for
the not performing of duty by the Ram but under these circumstances of heavy rain contractor is
not able to perform his duties and he cannot be bound. Betty can terminate the contact with the
Ram if she has essential supply for coals in their steal works or he can contract with the other
party for the supply of coals. In this case the rule of termination of contract by frustration would
take place as one party (Ram) is unable to perform his duties under the unforeseen circumstances
and court cannot bind to the Ram to make the availability for coal under this situation.
In the case of Gold Group Properties Ltd v BDW Trading Ltd, the rule of termination of contract
due to the frustration took place and contract was breached.
Conclusion
On the basis of case evaluation, it can be stated that the Ram is not able to perform his duties due
to the heavy rain and the contract was valid and enforceable but Betty cannot enforce the Ram to
perform his liabilities. It is also concluded that the contract would be terminated by the
frustration because of reasonable circumstances Ram was unable to perform the legal
boundation.

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References
Australiancontractlaw, (2016) Cases. Available at:
https://www.australiancontractlaw.com/cases.html (Accessed: September 01, 2017).
Bailey, J. (2016) Construction Law. USA: CRC Press.
Clarke, M., Hooley, R., Munday, R., Sealy, L., Tettenborn, A. and Turner, P. (2017) Commercial
Law: Text, Cases, and Materials. UK: Oxford University Press.
Humanrights, (2013) Common law rights, human rights scrutiny and the rule of law. Available
at: https://www.humanrights.gov.au/common-law-rights-human-rights-scrutiny-and-rule-law
(Accessed: September 01, 2017).
Lawhandbook, (2013) Consent. Available at: http://www.lawhandbook.sa.gov.au/ch29s02.php
(Accessed: September 01, 2017).
Lawsociety, (2012) Australian Government Review of Australian Contract Law. Available at:
https://www.lawsociety.com.au/cs/groups/public/documents/internetyounglawyers/644777.pdf
(Accessed: September 01, 2017).
Thampapillai, D., Tan, V., Bozzi, C. and Matthew, A. (2015) Australian Commercial Law. UK:
Cambridge University Press.
Turner, C. and Trone, J. (2017) Australian Commercial Law, 31st edition. Australia: Thompson
Reuters
Turner, C., Trone, J. and Gamble, R. (2016) Concise Australian Commercial Law. Australia:
THOMSON LAWBOOK Company.