Contract Law Assignment: Case Analysis and Contract Law Principles

This contract law assignment analyzes a scenario involving a minor, Eddie, and various contractual issues. The assignment explores the formation of contracts, the capacity of minors to enter into contracts, breach of promise, and available remedies. It examines the application of New Zealand contract law, referencing relevant legislation such as the Contract and Commercial Law Act 2017 and case law, including cases like *Wine Country Credit Union v Kerry Charles Riener*, *Nash v. Inman*, and *Attorney-General v Whangarei District Council*. The assignment follows the IRAC method, identifying issues, stating the relevant rules, applying those rules to the facts, and drawing conclusions. The analysis covers topics such as test driving, payment agreements, loan repayment, car purchases, and promises made. The document provides a comprehensive legal analysis of the given scenario, offering insights into the application of contract law principles in New Zealand.

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Contract law

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Table of Contents
Answer to Question 1.................................................................................................................4
Issue........................................................................................................................................4
Rule........................................................................................................................................4
Application.............................................................................................................................4
Conclusion..............................................................................................................................4
Answer to Question 2.................................................................................................................4
Issue........................................................................................................................................4
Rule........................................................................................................................................4
Application.............................................................................................................................4
Conclusion..............................................................................................................................4
Answer to Question 3.................................................................................................................4
Issue........................................................................................................................................4
Rule........................................................................................................................................5
Application.............................................................................................................................5
Conclusion..............................................................................................................................5
Answer to Question 4.................................................................................................................5
Issue........................................................................................................................................5
Rule........................................................................................................................................5
Application.............................................................................................................................5
Conclusion..............................................................................................................................5
Answer to Question 5.................................................................................................................5
Issue........................................................................................................................................5
Rule........................................................................................................................................5
Application.............................................................................................................................5
Conclusion..............................................................................................................................6
Answer to Question 6.................................................................................................................6
Issue........................................................................................................................................6
Rule........................................................................................................................................6
Application.............................................................................................................................6
Conclusion..............................................................................................................................6
Answer to Question 7.................................................................................................................6

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Issue........................................................................................................................................6
Rule........................................................................................................................................6
Application.............................................................................................................................6
Conclusion..............................................................................................................................6
Bibliography...............................................................................................................................7

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Answer to Question 1
Issue
The main issue is whether there was a contract between Eddie and Sam with regard to
Eddie’s acceptance of an offer pertaining to test driving.
Rule
Since New Zealand is headed by the monarch of the United Kingdom, the common law of
England and Wales is applicable as far as the law of contract is concerned1.
Application
In the case of Wine Country Credit Union v Kerry Charles Riener, the High Court of New
Zealand held that, contract would be enforceable against minors if it involves rationality and
fairness.
Conclusion
The aspect relating to contract between Eddie and Sam is justified.
Answer to Question 2
Issue
The main issue is whether there was a contract between Eddie and Sam with regard to the
payment of the sum as mutually agreed2.
Rule
The rule relating to minor’s capacity to enter contract would be applicable.
Application
In the case of Morrow and Benjamin Limited v. Whittington, it was held by the High Court
of New Zealand that the opening of an account in the name of minor was not reasonable.
Conclusion
The aspect relating to contract between Eddie and Sam is justified.
Answer to Question 3
Issue
The main issue is the repayment of loan by Eddie which has been obtained by Shark Finance
Limited.
Rule
The rule relating to Sub-section 2 of Section 5 of the Minors Contract Act would be
applicable.
1Jill Poole Textbook on contract law (4th ed., Oxford University Press, Oxford, 2016).
2 Hugh Beal et al. eds. Cases, materials and text on contract law(Bloomsbury Publishing, Camden, 2018).

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Application
In the case of National Bank of New Zealand v. Ram, it was held by the District Court of
New Zealand that contracts with minors cannot be enforced. It was further decided that if
Ram was minor, he would have stronger defense pertaining to the repayment of loan. As a
result, the contract was not unfair.
Conclusion
Eddie can claim defense on grounds of being a minor accordingly
Answer to Question 4
Issue
The main issue is whether there was a contract between Eddie and Sam with regard to
Eddie’s purchase of the car.
Rule
The Contract and Commercial Law Act of 2017 would be applicable3.
Application
In the case of Nash v. Inman, it was held by the King’s Bench that any contract which does
not involve necessaries for a minor is void.
Conclusion
The aspect relating to contract between Eddie and Sam is justified.
Answer to Question 5
Issue
The main issue is whether the promise by Sam towards Eddie is enforceable or not.
Rule
Since New Zealand is headed by the monarch of the United Kingdom, the common law of
England and Wales is applicable pertaining to breach of promise4.
Application
Since Eddie had been promised by Sam that the car would be kept until Friday, there is a
breach of promise on part of Sam. It is implied by the decision made in the case of Attorney
General v. Wangarei District Council in which it was held that the aspect of consideration
would imply breach of promise as in the instance pertaining to contract5.
Conclusion
The aspect relating to breach of promise is justified.
3 Contract and Commercial Law Act 2017
4 John Cartwright Contract law: An introduction to the English law of contract for the civil lawyer. (6th ed.
Bloomsbury Publishing, Camden, 2016).
5 Attorney-General v Whangarei District Council [2005] 6 NZCPR 561

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Answer to Question 6
Issue
The main issue is whether Sam is right in saying that there cannot be any agreement between
brother and sister.
Rule
Since New Zealand is headed by the monarch of the United Kingdom, the common law of
England and Wales is applicable pertaining contract.
Application
Since it is an agreement for sale and not a gift deed, Sam is absolutely incorrect in saying this
as far as Section 11 of the Commercial and Contract Law of 2017 is concerned. The aspect of
consideration can be applied to both contract of sale and gift deed as implied by the decision
of House of Lords in the case of Currie v. Misa.
Conclusion
The aspect relating to correctness of Sam’s statement is justified with regard to the transfer of
rights of the ownership of the car.
Answer to Question 7
Issue
The main issue is whether remedies are available for Eddie against Sam.
Rule
The law relating to duties and obligations in a contract to be performed by the parties
accordingly would be applicable as far as the common law of England and Wales is
concerned with regard to the jurisdiction of New Zealand.
Application
It was the duty of Sam to provide a proper functional car to Eddie as far as the undertaking
for due diligence is concerned. Section 35 of the Commercial and Contract Law of 2017
would be applicable in this regard as far as compensation is concerned with reference to
misrepresentation. In Young v. Hunt, it was held by the High Court of New Zealand that a
contract simply cannot be cancelled on grounds of misrepresentation, unless the act of
misrepresentation resulted in the breach of certain terms of the contract
Conclusion
It is observed that Eddie must be provided remedial measures in a proper and appropriate
manner as far as the aspect related to compensation is concerned.

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Bibliography
Attorney-General v Whangarei District Council [2005] 6 NZCPR 561
Contract and Commercial Law Act 2017
DL Limited v VO [2016] NZDT 952
Hugh Beal et al. eds. Cases, materials and text on contract law(Bloomsbury Publishing,
Camden, 2018).
Jill Poole Textbook on contract law (4th ed., Oxford University Press, Oxford, 2016).
John Cartwright Contract law: An introduction to the English law of contract for the civil
lawyer. (6th ed. Bloomsbury Publishing, Camden, 2016).