LST2BSX: Business Law and Ethics - Common-Law Assignment IRAC

This report presents an analysis of several breach of contract scenarios under Australian common law, using the IRAC (Issue, Rule, Application, Conclusion) method. The report examines cases involving the sale of goods, focusing on whether specific terms, such as gluten-free flour and the color of cream, constitute conditions or warranties. It explores the implications of implied terms in contracts, particularly in the context of a children's party. The analysis includes discussions on material breaches, repudiatory breaches, and the potential defenses against breach of contract claims, such as the limitation of statutes and force majeure. The report also explores the distinction between warranties and conditions and their consequences in the event of a breach, providing a comprehensive overview of contract law principles as applied to the given case studies.

Common-Law
Assignment IRAC

Table of Contents
INTRODUCTION 1
MAIN BODY 1
REFERENCES 7
Books and Journals 7

INTRODUCTION
Propounding breach of contract in Australia comes into the plan when an individual does
fully full fill the duty which is specifically prescribed in the contract by the other individual,
whereas both individuals are competent contracting parties. A lawfully obligated contract has
some undermined terms and conditions, which are to be maintained, accepted, and then satisfied
by the party who is liable for it, if the clauses of the contract are not satisfied, it results in a
breach of contract. The regulations of the contract of Australia are formulated by the English
Common Law. The crucial postulates on which the contractual directives of Australia standards
is freedom of contract, the parties will have free rein to negotiate as they deem fit, this report will
describe the case law in the IRAC format, which involves contract essentials, breach of contract,
breach of warranty and conditions (Alazab, Hong, and Ng,2021).
MAIN BODY
(1) PARTIES- Sunil & Top Five Stars Flour
ISSUE- Was it a term of the contract between Sunil and Top Five Stars Flour that the
flour would be gluten-free?
RULE- a breach of contract happens when the party to the contract, fails to do so the
liabilities which are mentioned in the contract, the breach can take place when one of the party
will exhibit a mannerism not satisfy the needs of the contract, or the party is reluctant, the entire
fright is on the claimant to appear, on the adjusting of the possibilities, that there has been a
breach of the agreement that has caused the misfortune claimed, will depend on the discretion of
the court. A repudiatory breach is a breach of contract that permits a non-breaching party, to treat
the contract like it on its conclusion, the foremost common illustration of a repudiatory breach
could be a breach of condition.
Breaches of guarantees, don't end the contracts, and the proper cure for such breach will be
damages. Implied terms in a contract, must be reasonable, efficacious toward the contract, and
fair-minded, must be obvious without even stating it (Raushan, 2020).
APPLICATION OF RULE - it is really easy to shatter down a perfectly drafted lawful claim,
for the damages of the breach of contract. Businesses that are breaching the contract and taking
off the guiltless party within the reel tally of it. In an indefensible lawsuit, the summary of the
judgment application can be warranted. In the case where the claim is not safeguarded, default
judgments are accessible to urge the judgment promptly. The expression of 'Material Breach'
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has no set lawful meaning unless it is added to the meaning scope of a contract, something else
will be taken into account to set the variable by the court of law. One judgment held that the
breach may be material, in the event of having a genuine sense and genuine impact on the
innocent party, the breach of material is important but is not required to be repudiatory. In the
case of Bains v Arunvill Capital Ltd v Anor (2020), the court held that the material breach
clause in the contract can assist in avoiding the need for any arguments about the amount of a
repudiatory breach, but such clause needs to seize the opportunity to look into the standard of a
material breach
CONCLUSION - When Sunil specifically asked for 'gluten-free flour ( but in an expressed
manner) Richard ' who spokes as the representative of top five-star flour, the terms of the flour
choices were intended to be very clear from Sunil's side, the implied term which was stated was
not that obvious and not giving efficiency to the contract between the parties. As per that Richard
is not liable for any breach of contract regarding the implied term clause.
(2) PARTIES- Sunil & Denies and Jenny
ISSUE- Was there an implied term in Denies and Jenny's contract with Sunil, that the kid's party
cream bun is gluten-free?
RULE- a terminology, that will be known as implied when it has not been expressed by either of
the party, the terms will be not written anywhere in the contract, but anyhow it is presumed they
are to be agreed upon as nonverbal terms of the contract and still allocated to legally binding
which arises obligations. In the case of Shell UK v Lostock Garage Ltd (1976), the courts have
usually inferred a hesitation when it comes to the implied terms, as they think it is deemed fit for
the parties to make the terms as transparent as possible, but in most specific occurrences, the
courts will suggest allowing the terms which are not set out in the contract, hence, the implied
terms of the contract (Lanyon,2021).
In the case of The Moorcock (1889), the involvement of the court will let t choose the important
term, and grant it crucial for the contract, the term must be required to create the contract work.
APPLICATION TO RULE - In the case of the Liverpool City Committee v Irwin (1977), the
contracts which are utilized on a day to day suppositions have created a criterion pair of terms
that can be inferred in any contract, like contract building up for rental housing or any contract
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which is related to the term of employment. They usually enhance the rights of the party who has
a light hand in the contractual terms.
CONCLUSION- the implied term which arises between Sunil and Denies and Jenny, regarding
the cream buns which were served at the kid's party, was supposed to be hygienic and gluten-
free, it was an implied term in the contract of employment between the parties of the contract,
that the cream buns will not harm anybody it did, Sunil was liable for the breach of contract, as
the implied term was reasonable and efficient for the contract, the quality of the cream buns
came into question and the buns did not meet the requirement of Denies and Jenny.
(3) PARTIES - Kiran & Sunil
ISSUE- Was the color of cream a condition or a warranty of the contract
RULE- Warranty and Condition in the purview of contract law allude to the particular
stipulations set in a contract of sale. A contract tends to be an assertion that stays put between
two parties to complete the formulations of a complete transaction. Terms that are assessed as
conditions, when the breach will occur, permit the innocent party to end the contract, and terms
that are analyzed as a warranty for most parties will allow the guiltless party to claim the
particular damages for the breach that occurred.
APPLICATION TO RULE - In the case of Associated Newspaper Ltd v Banks (1951), to
address whether a term mentioned in the contract is a condition or a warranty, or is
fundamentally essential or not, solely depends upon the purpose of the parties as shown in the
contract. the test of essentiality will show the clear nature of the contract, this doctrine will
collect the entirety, be the specific terms or collective terms in the contract, the promise which is
made is of utter importance to the promisee, that significance can not be compromised, unless
the assurance is provided for the considerable execution of the promise, the refinement between
the warranties and conditions has been used in the enactment, in the regulations of Goods Act
(1958), characterizes warranty within this act, in Section 3, warranty implies as assertion
concerning products which are subject of a contract of sale but collateral to most of the reason of
such contract the breach of which gives rise to claim for harm but not to a right to dismiss the
goods and take the contract into question and deny it (Gooley,Radan, and Vickovich, 2021).
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CONCLUSION - The color of the cream bun which was in question by the facts of the case,
will be included in a mere warranty, Kiran can most certainly ask for remedy or damages in case
of it, but cannot deny to take the goods or cancel the contract regarding the goods.
(4) PARTIES - Sunil & Kiran
ISSUE- Is Sunil still responsible for the cream being the wrong color on the buns ordered by
Kiran?
RULE- in the essence of the performance of a contract, a cause of activity for breach of contract
in Australia emerges, where one party comes up short of the accomplishment of the
commitments which are mentioned in the contract. This may happen by way of disappointment
to perform or a standard of anticipatory breach. The burden of confirmation lies with the party
affirming the breach present in the contract, failure of accomplishing what can happen to non-
performance, flawed execution, late action, and a breach of a legally binding warranty. The non-
breaching party will for the most part collect a right to claim the damages but will not
continuously be entitled to a programmed right of termination of the contract.
RULE APPLICATION- in the case of Triumph v Primus, pertains to all the normal
components of a warranty conflict, an endeavor to maintain a strategic distance from the
impediments by contending a claim was not a warranty claim, a contention over revelation, and a
resistance around the benefit and substance of the taken note of the breach, eventually, despite
the fact, it was a warranty approximately the cautious arrangement of projections that was the
failure of the purchaser. As warranties include a portion of the contract and accepting the
contract enforceable, within the nonattendance of vulnerability, a few shapes of statutory
forbiddance or open policy considerations (Sanchez-Lasaballett, 2022).
Depending on the nature of the warranty, which arises in the contract, it might need to
substantiate :
● An assertion for the damages, which perhaps includes the form of liquidated damages.
● An expression of the right of cessation and a declaration for the damages,
● Rights of statutory, frequently incorporating a right to damages.
CONCLUSION - Sunil can be responsible for breaching a specific performance of a contract,
under the warranty systems, as the requirement for the cream bun was not fulfilled by him,
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anything more the termination of the contract, can be denied but anyhow, the damages can be
claimed by Kiran (Bryan,.and Rafferty, 2018).
DEFENCES OF BREACH OF CONTRACT
● Limitation of statutes, the court of law affirmed that the parties of the contract can call
out the contractual terms and liabilities, of the application of the statutes of restrictions
where the terms of their understanding give a party has deferred or revoked its right to
depend on the time confinement, within the following regulations (Vujačić ,2020).
● Force majeure and doctrine of frustration, recognizable regulations in the Australian
law, roots are rigged within the setting of vitality and supply system. Force majeure in
Australian contracts is legally binding terms tending to results of an extraordinary or
startling occurrence. The postulate frustration will be applicable when the opposite party,
fails to perform the commitments mentioned in the contract because the terms of the
contract had been drastically distinctive from those, which was addressed by the party at
the time of the contract.
● Coercion, influence, or unconscious procedure, if it proved that the contract is obtained
by any of the above parameters, Australian law considers the contract to be voidable by
the party.
CONCLUSION
The facts of the varied case which is mentioned above, entirely talk about the breach of contract,
which can be related to the Civil Law Act of Australia, as well the contractual regulations. The
breach of contract is specified in the terms of warranties, implied terms, and specific
performance of a contract (Kryla-Cudna, 2018).
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REFERENCES
Books and Journals
Alazab, M., Hong, S.H. and Ng, J., 2021. Louder bark with no bite: Privacy protection through
the regulation of mandatory data breach notification in Australia. Future
Generation Computer Systems, 116, pp.22-29.
Gooley, J., Radan, P. and Vickovich, I., 2021. Principles of Australia contract law: cases and
materials. LexisNexis.
Vujačić, J.S.P., Anticipatory Breach of Contract in Uniform Contract Law: Overview of the
Solution of the UN Convention on the International Sale of Goods. Balkan
Yearbook of European and International Law 2020, 2020, p.61.
Bryan, D. and Rafferty, M., 2018. Risking together: How finance is dominating everyday life in
Australia. Sydney University Press.
Lanyon, V., 2021. Share sale and purchase agreements. Taxation in Australia, 56(1), pp.64-69.
Sanchez-Lasaballett, E., 2022. Case note:'Valve Corporation v Australian Competition and
Consumer Commission'[2017] FCAFC 224. Commercial Law Quarterly.
Raushan, P., 2020. Hadley & Anr. vs Baxendale & Ors. Jus Corpus LJ, 1, p.67.
Kryla-Cudna, K., 2018. Breach of contract and damages for non-pecuniary loss. European
review of private law, 26(4).
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