Business Law: Case Study Analysis of Contract Law Principles

This document presents a comprehensive analysis of several business law cases, focusing on contract law principles. It begins with a detailed examination of Unison Finance Group Pty Ltd v Electric Life Pty Limited, exploring the interpretation of renewal clauses in hire-purchase agreements, the elements of contract formation (offer, acceptance, intention, and clarity), and the application of the Parole Evidence Rule. The document then moves on to Southern Cross Autoglass Pty v Ltd Protector Glass Industries Pty Ltd, analyzing issues related to asset sale agreements, repudiation of contract, and the termination of agreements. Each case includes a background summary, specific questions, and detailed answers that apply relevant legal concepts and principles. Bibliographies are provided for each case, including articles, books, journals, cases, legislations, and other relevant resources to support the analysis. The document offers a thorough review of contract law concepts, providing a practical and insightful resource for students studying business law.

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Business Law
Cases
23-Oct-17
(Student Details: )

BUSINESS LAW 2
Contents
Case 1.............................................................................................................................................11
Background................................................................................................................................11
Question 1..................................................................................................................................12
Answer 1................................................................................................................................12
Question 2..................................................................................................................................13
Answer 2................................................................................................................................13
Question 3..................................................................................................................................14
Answer 3................................................................................................................................14
Question 4..................................................................................................................................14
Answer 4................................................................................................................................14
Bibliography..................................................................................................................................16
Articles/ Books/ Journals...........................................................................................................16
Cases..........................................................................................................................................16
Legislations................................................................................................................................16
Others.........................................................................................................................................16
Case 2.............................................................................................................................................17
Background................................................................................................................................17
Question 1..................................................................................................................................19

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Answer 1................................................................................................................................19
Question 2..................................................................................................................................19
Answer 2................................................................................................................................19
Question 3..................................................................................................................................20
Answer 3................................................................................................................................20
Question 4..................................................................................................................................20
Answer 4................................................................................................................................20
Question 5..................................................................................................................................21
Answer 5................................................................................................................................21
Bibliography..................................................................................................................................22
Articles/ Books/ Journals...........................................................................................................22
Cases..........................................................................................................................................22
Legislations................................................................................................................................22
Others.........................................................................................................................................22
Case 3.............................................................................................................................................24
Background................................................................................................................................24
Question 1..................................................................................................................................25
Answer 1................................................................................................................................26
Question 2..................................................................................................................................26
Answer 2................................................................................................................................26

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Question 3..................................................................................................................................27
Answer 3................................................................................................................................27
Question 4..................................................................................................................................27
Answer 4................................................................................................................................28
Question 5..................................................................................................................................28
Answer 5................................................................................................................................28
Bibliography..................................................................................................................................29
Articles/ Books/ Journals...........................................................................................................29
Cases..........................................................................................................................................29
Legislations................................................................................................................................29
Others.........................................................................................................................................29
Case 4.............................................................................................................................................31
Background................................................................................................................................31
Question 1..................................................................................................................................32
Answer 1................................................................................................................................32
Question 2..................................................................................................................................33
Answer 2................................................................................................................................33
Question 3..................................................................................................................................33
Answer 3................................................................................................................................34
Question 4..................................................................................................................................34

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Answer 4................................................................................................................................34
Question 5..................................................................................................................................34
Answer 5................................................................................................................................34
Bibliography..................................................................................................................................35
Articles/ Books/ Journals...........................................................................................................35
Cases..........................................................................................................................................35
Legislations................................................................................................................................35
Others.........................................................................................................................................35
Case 5.............................................................................................................................................36
Background................................................................................................................................36
Question 1..................................................................................................................................37
Answer 1....................................................................................................................................38
Question 2..................................................................................................................................38
Answer 2....................................................................................................................................38
Question 3..................................................................................................................................39
Answer 3................................................................................................................................39
Question 4..................................................................................................................................39
Answer 4................................................................................................................................39
Question 5..................................................................................................................................40
Answer 5................................................................................................................................40

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Bibliography..................................................................................................................................41
Articles/ Books/ Journals...........................................................................................................41
Cases..........................................................................................................................................41
Legislations................................................................................................................................41
Others.........................................................................................................................................42
Case 6.............................................................................................................................................43
Background................................................................................................................................43
Question 1..................................................................................................................................44
Answer 1................................................................................................................................45
Question 2..................................................................................................................................45
Answer 2................................................................................................................................46
Question 3..................................................................................................................................46
Answer 3................................................................................................................................46
Question 4..................................................................................................................................46
Answer 4................................................................................................................................46
Question 5..................................................................................................................................47
Answer 5................................................................................................................................47
Bibliography..................................................................................................................................48
Articles/ Books/ Journals...........................................................................................................48
Cases..........................................................................................................................................48

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Legislations................................................................................................................................48
Others.........................................................................................................................................48
Case 7.............................................................................................................................................49
Background................................................................................................................................49
Question 1..................................................................................................................................51
Answer 1................................................................................................................................51
Question 2..................................................................................................................................51
Answer 2................................................................................................................................51
Question 3..................................................................................................................................52
Answer 3................................................................................................................................52
Question 4..................................................................................................................................52
Answer 4................................................................................................................................53
Question 5..................................................................................................................................53
Answer 5................................................................................................................................53
Bibliography..................................................................................................................................54
Cases..........................................................................................................................................54
Legislations................................................................................................................................54
Others.........................................................................................................................................54
Case 8.............................................................................................................................................56
Background................................................................................................................................56

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Question 1..................................................................................................................................58
Answer 1................................................................................................................................58
Question 2..................................................................................................................................58
Answer 2................................................................................................................................58
Question 3..................................................................................................................................59
Answer 3................................................................................................................................59
Question 4..................................................................................................................................59
Answer 4................................................................................................................................59
Question 5..................................................................................................................................59
Answer 5................................................................................................................................59
Bibliography..................................................................................................................................61
Cases..........................................................................................................................................61
Legislations................................................................................................................................61
Others.........................................................................................................................................61
Case 9.............................................................................................................................................62
Background................................................................................................................................62
Question 1..................................................................................................................................64
Answer 1................................................................................................................................64
Question 2..................................................................................................................................64
Answer 2................................................................................................................................64

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Question 3..................................................................................................................................64
Answer 3................................................................................................................................65
Question 4..................................................................................................................................65
Answer 4................................................................................................................................65
Question 5..................................................................................................................................65
Answer 5................................................................................................................................66
Bibliography..................................................................................................................................67
Books.........................................................................................................................................67
Cases..........................................................................................................................................67
Legislations................................................................................................................................67
Others.........................................................................................................................................67
Case 10...........................................................................................................................................69
Background................................................................................................................................69
Question 1..................................................................................................................................71
Answer 1................................................................................................................................71
Question 2..................................................................................................................................72
Answer 2................................................................................................................................72
Question 3..................................................................................................................................72
Answer 3................................................................................................................................72
Question 4..................................................................................................................................72

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Answer 4................................................................................................................................72
Question 5..................................................................................................................................73
Answer 5................................................................................................................................73
Bibliography..................................................................................................................................74
Cases..........................................................................................................................................74
Legislations................................................................................................................................74
Others.........................................................................................................................................74

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Case 1
Unison Finance Group Pty Ltd v Electric Life Pty Limited1
Background
In this case, the parties had the intent of entering into a hire-purchase agreement in which some
electronic equipment had to become the renting party’s property once the initial four year term
was expired. Though, the agreement terms failed to reflect the same and instead the agreement
stated that the rental agreement would roll over once the initial term ended automatically. As a
result of this, the rental payments were being deducted for every quarter from the bank account
of the renting party for a period of 9 years, since the expiry of the initial term. These payments
were attempted to be recovered based on these being made in error, though it was claimed upon
by the hiring party that the contract had been renewed and was on foot when these payments had
been made. As a result of this, the payments were deemed to have been made in a proper manner
and also been received properly2.
The rental agreement covered a renewal clause where automatic renewal was provided for a
twelve month period, once the initial term ended. The main issue of dispute here was that the
renewal clause had to be read to mean that there had to be only a single renewal or whether each
of the successive terms had to be subjected to their own twelve month auto renewal. It was stated
in the agreement that there would be an automatic renewal once the initial term was brought to
an end “upon the same terms and conditions as appear in this Agreement”. It was stated by the
1 [2015] NSWSC 170
2 King & Wood Mallesons, Unison Finance Group Pty Ltd v Electric Life Pty Limited [2015] NSWSC 170 (02 July
2015) <http://www.kwm.com/en/au/knowledge/insights/unison-finance-group-electric-life-nsw-contract-law-
20150702>

BUSINESS LAW 12
court that the clear wordings of this meant that the renewal clause had been incorporated into the
agreement which was renewed, in addition to all of the other terms. This meant that the
agreement had to be renewed automatically, in addition to all of the other term3.
In short, the agreement had to be renewed again for a twelve months period, in succession, till
the time the one of the parties took some action to terminate the contract. As a result of this, the
renting party formed a view that with the end of initial term, the agreement had expired, where
the reality was that the same had been renewed for an additional period of 9 years resulting in
creating of additional liability for the next 9 year period, for the rental payments. Even though
this result was deemed as quite harsh, it was deemed as just as the court could not depart from
the clear wordings which gave a clear meaning to the agreement4.
Question 1
Whether the term “upon the same terms and conditions as appear in this Agreement” created a
new (renewed) contract, with regards to offer and acceptance?
Answer 1
The contract formation requires certain elements to be present for the contract to be binding in a
legal manner. This includes the offer, the acceptance, the intention, consideration, capacity and
clarity5. The agreement clauses are that of offer and acceptance. For a contract to be made, one
party has to offer certain terms to the other party. This offer than has to be accepted by the party
to which the offer had been made6.
3 Austlii, Unison Finance Group Pty Ltd v Electric Life Pty Limited [2015] NSWSC 170 (10 March 2015) (20 March
2015) <http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2015/170.html>
4 At 2
5 Linda Mulcahy, Contract Law in Perspective (Routledge, 5th ed, 2008)
6 Paul Latimer, Australian Business Law 2012 (CCH Australia Limited, 31st ed, 2012)