Law in Commerce - Problem Solving Assignment: Edition 6 - Analysis

This assignment presents a detailed analysis of several legal problems within the context of commerce, focusing on key areas of contract law and tort law. The assignment begins by examining a scenario involving an agreement for services and the breach of express terms, exploring relevant case law such as Dick Bentley Productions V Harold Smith Motors and Bannerman V White. The analysis continues with a discussion of a unilateral contract, drawing on Carlill V Carbolic Smoke Ball Co to determine the obligation of a reward. The assignment then addresses the doctrine of promissory estoppels, analyzing a case and applying Combe V Combe to determine if a party can recover benefits from a promise. The document further delves into exemption clauses, discussing scenarios where NRL attempts to limit liability, referencing case laws such as Houghton v Trafalgar Insurance and Hollier V Rambler Motors. Finally, it explores the concepts of puffery and misrepresentation in the context of sales, referencing cases such as Lens V Devonshire Club and Oscar Chess V Williams, as well as the use of contractual terms. The assignment provides clear explanations of legal principles and applies them to various scenarios, offering insights into court judgments and the application of relevant case law.

Law in Commerce Edition 6

Table of Contents
PROBLEM 1...................................................................................................................................3
a. Stating the issue according to case situation............................................................................3
b. Assessing the relevant law related to the problem...................................................................3
c. Presenting the main case according to the issue......................................................................3
d. Explaining the judgment of court............................................................................................3
PROBLEM 2...................................................................................................................................3
a. Issues........................................................................................................................................3
b. Law..........................................................................................................................................4
c. Case..........................................................................................................................................4
d. Court judgment........................................................................................................................4
PROBLEM 3...................................................................................................................................4
a. Stating issue.............................................................................................................................4
b. Identifying law.........................................................................................................................4
c. Presenting case.........................................................................................................................5
d. Court’s judgment.....................................................................................................................5
PROBLEM 4...................................................................................................................................5
Scenario 1....................................................................................................................................5
a. Issue.........................................................................................................................................5
b. Legal laws................................................................................................................................5
c. Relevant case...........................................................................................................................6
d. Decision of court......................................................................................................................6
Scenario 2....................................................................................................................................6
a. Evaluating issue.......................................................................................................................6
b. Legal regulation.......................................................................................................................6

c. Case law...................................................................................................................................6
d. Court’s judgment.....................................................................................................................7
PROBLEM 5...................................................................................................................................7
a....................................................................................................................................................7
b...................................................................................................................................................7
c....................................................................................................................................................7
REFERENCES................................................................................................................................8

PROBLEM 1
a. Stating the issue according to case situation
In accordance with the given case situation, Bill agreed to give $70 for mowing his yard
and the same is agreed by Emma. Once, yard has mowed thereafter Bill offered $50 to Emma
which is the main issue in given case scenario.
b. Assessing the relevant law related to the problem
Under this situation, express terms are applied in which terms and conditions are
agreed by both the parties. In the given case, Emma agreed to mow the yard @ $70 and Bill will
pay the same so it is considered as express contract.
c. Presenting the main case according to the issue
Dick Bentley Productions V Harold Smith Motors (1965) and Bannerman V White
highly suits to the case scenario. In this, court gave judgment that in the case of express terms
both the parties are obliged to act according to mutually agreed terms conditions (Terms of a
contract, 2017). On the basis of this aspect, if one party makes default in their performance then
other one or innocent party has right to make sue for the compensation.
d. Explaining the judgment of court
On the basis of case situation, Emma can sue on Bill for the breach of contract. Hence,
Emma will win in the court according to the expressed terms and conditions. Moreover,
defendant party is obliged to give compensation for the default made in relation to making
payment such as $50 rather than $70.
PROBLEM 2
a. Issues
Cited case situation shows that a man has robbed Mrs Verity’s diamond ring worth of
$50000. In this, with motive to get ring back Mrs Verity has announced the reward of $1000.
One day Police Constable Smith arrested the theft but Mrs Verity denied giving reward to the
concerned authority which is considered as main issue.

b. Law
By considering the given case situation it can be stated that unilateral contract exists in
this. Moreover, in unilateral contract offeror give offer to the general public at large and obliged
to perform the same if offeree acts accordingly (Butler and Rodrick, 2015). In this, PC Smith has
arrested the robber and demanded for the reward amount. Thus, unilateral contract law is applied
in such case.
c. Case
Relevant case law which is highly suited to this situation implies for Carlill V Carbolic
Smoke Ball Co (1892).
d. Court judgment
Contract law entails that in the situation of unilateral bindings Mrs. Rich has obligation to
give reward to PC Smith. Hence, if Smith will make sue on Mrs. Rich then claimant party has
possibility to enjoy the winning situation. Thus, by keeping in mind the case law of Carlill V
Carbolic Smoke Ball it can be stated that Smith has authority to get reward from Mrs. Smith.
PROBLEM 3
a. Stating issue
Presented case situation entails that Mary and her husband Tim both lived in USA.
Later, Marry decided to return Australia and her husband Tim agreed to pay weekly allowances
such as $500. Three months later, Marry was not provided with the allowances agreed by her
husband namely Tim. Marry got divorced from Tim and sued for getting the payment of weekly
allowance.
b. Identifying law
On the basis of legal aspects case law of promissory estoppels is applied on cited case.
Doctrine of promissory estoppels clearly entails that one party can recover the benefits of
promise if there is no existence of legal contract. Law of promissory note relies on the extent to
which promisee’s loss is significant in the absence of fulfilled promise. Promissory note may be
defined as a legal principle which is enforceable by law irrespective of the fact that it is made
without having formal consideration. Hence, promissory estoppels enable injured party to

recover on a promise (Rees, Rice and Allen, 2014). According to promissory estoppels person
can claim for the compensation when he meets three legally required elements such as promisor,
promise and a detriment suffered.
c. Presenting case
Combe V Combe (1951) is one of the well known cases of promissory estoppels that will
help in resolving such situation more effectually. In such case, court gave the judgment that
when one party made promise to another party then obliged to act accordingly. Hence, such Act
will assist Marry in getting allowance such as $500 from her husband.
d. Court’s judgment
If Marry will sue on Tim then there is the possibility that situation is in favor of her.
Moreover, promise has been made by Tim to Marry in relation to the offering of weekly
allowance such as $500. Previous case findings or results clearly shows that Marry will win the
case if sue is made on Tim.
PROBLEM 4
Scenario 1
a. Issue
Given case presents that car has badly damaged by another car which was parked in the
parking area of NRL. For parking the car fees of $30 charged by NRL and given a ticket to the
concerned authority. On such ticket, it was mentioned that NRL will not accept any kind of
liability for loss or damage. It is clearly cited on ticket that vehicles and goods are left at
customer’s risk.
b. Legal laws
Rule and regulation of exemption clause is highly associated with the given case
problem. Exclusion clause is one which enables individual to limits the liability to a certain
extent. Specifically, there are mainly two types of clauses such as limitation and exclusion
clause. Under limitation clause, liability of the party is limited to some extent (Vance and et.al.,
2013). On the other side, in exclusion clause, concerned party is excluded from liability to the

significant level. Rules and regulations also entail that individual is required to give explanation
of each clause which is inserted into the contract.
c. Relevant case
By taking into account the case law of Houghton v Trafalgar Insurance (1954), it can be
presented that company cannot limit its liability on the basis of exclusion clause. In such case,
court decided that on the basis of ambiguity company could not be exempt from liability.
Further, case law of Hollier V Rambler Motors (1972) entailed that defendant party could not
exclude himself from the liability.
d. Decision of court
In the parking area, it is the accountability of the owner to take care of vehicles which in
turn prevents accidents or any kind of damages. However, in the present case accident happened
due to the negligence of third party. Thus, both the parties are liable to give compensation to the
claimant party.
Scenario 2
a. Evaluating issue
Present case situation entails that on return Guy or individual found that an elephant
destroyed the car by sitting on it. Under this, issue is that NRL failed to make proper safe
arrangements regarding the car parked in the parking area.
b. Legal regulation
Laws related to exemption clause are applied to such case situation or scenario to the
large extent. Moreover, in this, NRL restricted their liability by mentioning the exclusion clause
on parking ticket.
c. Case law
Case of Parker V The South Eastern Railway co (1877) it can be said that ticket is merely
receipt. In accordance with this, one cannot limit the liability by including the exclusion clause
on ticket. Hence, such clause is highly in line with the case of NRL parking (Exclusion Clause,
2017).

d. Court’s judgment
Referring the case laws it can be stated that Guy will win the situation if he sues in
against to NRL. Moreover, it is liability of NRL to take high level of caution which in turn
restricts undesirable practices. In the parking area, it is the responsibility of NRL to make proper
safety arrangements (Vance and et.al., 2015). If NRL will make proper arrangements then there
is less possibility that elephant will enter in the parking area and damage the car. Hence, NRL is
obliged to give compensation to the guy whose car was damaged.
PROBLEM 5
a.
Case scenario entails that seller of car said that price cannot be beaten anywhere in the
world. Hence, by taking into consideration the case situation and judgment in the case of Lens V
Devonshire Club (1914) it can be presented that it is merely a puff. Moreover, with the motive
to attract custom, tradesman usually makes vague exaggerated claims in adverts. Thus, statement
presented by seller to sale motor vehicle is mere a puff and it does not form any basis of the legal
binding or contract.
b.
On the basis of cited case scenario, negotiation which takes place between the buyer and
seller comes under the category of mis-presentation. By considering the case scenario of Oscar
Chess V Williams (1957) it can be presented that in the case of mis-presentation buyer has right
to make sue on defendant party (Contractual term or representation, 2017).
c.
Given case presents that the statement such as ‘The sound system is brand new’ is
considered as express or contractual terms. Moreover, contractual terms are the one which in turn
forms the part of a contract. By referring the case of Reardon Smith Line Ltd V Hansen Tangen
it can be depicted that buyer can demand for compensation in against to seller if such statement
is not true.

REFERENCES
Books and Journals
Butler, D. A. and Rodrick, S., 2015. Australian media law. Thomson Reuters (Professional)
Australia Limited.
Rees, N., Rice, S. and Allen, D., 2014. Australian anti-discrimination law 2nd Edition. The
Federation Press.
Vance, T. R. and et.al., 2013. A millennial proxy record of ENSO and eastern Australian rainfall
from the Law Dome ice core, East Antarctica. Journal of Climate. 26(3). pp.710-725.
Vance, T. R. and et.al., 2015. Interdecadal Pacific variability and eastern Australian
megadroughts over the last millennium. Geophysical Research Letters. 42(1). pp.129-137.
Online
Contractual term or representation. 2017. Online. Available through: < http://e-
lawresources.co.uk/Contractual-term-or-representation.php>. [Accessed on 24th April 2017].
Exclusion Clauses. 2017. Online. Available through: <
http://www.lawhandbook.sa.gov.au/ch10s02s06.php>. [Accessed on 24th April 2017].
Terms of a contract. 2017. Online. Available through: <
https://www.australiancontractlaw.com/law/scope-terms.html>. [Accessed on 24th April 2017].