LAW 10 - University Legal Report: Property, Contract, and Leases

This document is a comprehensive report analyzing several legal issues. Question 1 examines a case involving a certificate of title, loan agreements, and the rights of parties involved in a property transaction, specifically focusing on whether Sleazy can take legal action for the recovery of money. The report delves into the rules of conveyancing, contract elements, and the implications of a cooling-off period. Question 2 explores the duties of a conveyancer when advising a client on starting a small business, detailing business structures, relevant Australian laws like the Corporation Act 2001, and the role of ASIC. It discusses company formation, partnerships, and the importance of ACN, ARBN, and ABN registrations. Question 4 addresses a lease agreement case involving Dr. Bones, analyzing lease terms, the expiration of the lease, and the possibility of a sublease to Dr. Bendit. The report highlights key aspects of lease agreements, including the rights and obligations of lessors and lessees.

Running head: LAW
LAW
Name of the Student
Name of the University
Author Note

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Table of Contents
Question 1........................................................................................................................................2
Issue.............................................................................................................................................2
Rules............................................................................................................................................2
Application..................................................................................................................................3
Conclusion...................................................................................................................................4
Question 2........................................................................................................................................4
Question 4........................................................................................................................................7
The terms of lease........................................................................................................................7
The sublease to Dr. Bendit...........................................................................................................9
Reference.......................................................................................................................................10

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Question 1
Issue
According to the case facts, the issue has found whether Sleazy can take any legal action
for recovers her money or not?
Rules
Conveyancing is a form of business where the title of real property has transferred to one
person to another where it guarantees to grant the encumbrance for a mortgage or lien. Two or
more than two parties form a contract to exchange the equitable interests for settlement the title
rights of the property. The sale of the land is governed according to the jurisdiction of the
location of that property. It is a contract for sale agreement for changing the rights of title of any
property.
According to the contract, it must meet with the elements, which includes the essential
elements of a contract like free consent, consideration, competency of the parties, certainty and
lawful objects. The basic elements of the sale of goods contract are:
 The two or more than two parties, the sale of the actual goods or any property
 Transfer of the ownership and exchange of price of the goods.
Therefore, it is necessary to satisfy all the terms of the sale of any goods or property. When
an agreement has formed for selling any property or take loans then it must processed with
appropriate rules and regulation. A contract for sale must formed between the parties where the
vendor will make the offer for the purchase and purchaser can negotiate the terms with the
vendors. The paying amount of the property will decided according to the value of the property.

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The decided amount may negotiate according to the terms of the contract. The property, which is
sold through any auction then the amount of the property will, decided according to the highest
bid in the auction. In this part, the vendor and purchaser both can negotiate the price. The
exchange of contract depends according to the nature of the formed contract. The cooling off
period is another part where the purchaser has the period where the contract can be rescind by
the purchaser. For the sale of auction, the cooling off periods never applies. In the case of
Westpac Banking Corporation vs. Cronin (1990)1, the plaintiff found to apply for a Certificate
of Title for his property. However, later he claimed that the certificate was delivered as security
for amounts due to the bank in respect of the companies. In another case, Gurfinkel vs. Bentley
Pty Ltd (1996)2 through an action the defendant has found to bankrupt and the plaintiff was the
trustee in bankruptcy of the estate.
For the transfer of the property title the purchaser must transfer the property documents
with the signs of both the purchaser and vendor. Through the conveyancer the registration of any
property swill processed after the settlement of between the purchaser and vendor. In the time for
completion, the contract can be completed after the development of new titles has issued.
Application
According to the fact, Cool has handover the Certificate of Title of his property to his
accountant Happy and asked for arrange a loan. In a letter Happy inform to Cool that she has
enclose a cheque for $25,000 for his business startup and her client Sleazy has provided the fund.
She also mentioned about to hold that the certificate of title in the office. However after Cool has
received the cheque, he did not repayment the amount to Sleazy. Now according to the facts of
the case, Cool is bound to repayment of the debt amount to Sleazy. According to the property,
1 6 BPR 13, 105
2 116 CLR 98

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law the certificate of title only applicable for the owner who holds the possession of the property.
Therefore, in this case Cool has taken a loan amount, which must transfer to the dept payer.
However, according to the agreement, Cool has right to use the Cooling period where he will get
chance to negotiate the amount and pay the debt. Sleazy has transferred the loan amount to Cool
in the exchange of title of the property but it not transfer the ownership of the property to Sleazy.
The loan has been transferred in exchange of the Certificate of Title which defines Cool is the
actual owner of the property and he holds the rights to use the Certificate of Title.
In this matter, Sleazy can take legal action against Cool for not payments of debt amount.
He can send legal notice to Cool for repayment of the debt amount but he has no rights to sell the
property until and unless the ownership of the property has transferred to Sleazy. According to
the terms of the property law, the ownership of the property only exchanged if the actual owner
transfer the rights o another person. Here, according to the fact of case the cooling-off period will
help Cool to repayment of the debt amount.
Conclusion
According to the fact of the case, it has concluded that Sleazy has no right to sell the
property of Cool until and unless the rights of the property have transfer.
Question 2
According to the duty of the Conveyancer, they are requiring to act according to their
professional conduct towards their client to provide advises.

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According to the fact, the client want to purchase a small business called Coffee
Connection where he will sell plants and equipment, stock in hand and goodwill. For starting a
business, it is necessary to set up for business strategies where the structure of the business helps
to get a proper transaction. First, it is necessary to buy a property for start a valid business where
the agreement will for, between the purchaser and vendor.
The startup business must follow according to the code of conducts where the business
will be profitable for the owner. According to the law of Australia, it is necessary to follow the
Corporation Act 2001(Cth) for starting a business. According to the resilient economy and well-
developed infrastructure, Australia is one of the best country which always offer for the best
opportunities in for successfully running a business. A proprietor and private company are bound
to follow the Corporation act where it helps to provide the rights on shares and liabilities of the
member of the company. The dealing with the liabilities of the company and their invitation to
offer helps to presents issue of shares, which are the common rights of the shareholders in a
company. The directors of the company also hold the rights to towards the company and issuing
the bonus for the shareholders according to the investment for the company. According to the
regulation of Australia, a company is bound to follow the regulation of the Australian Securities
and Investments Commission (ASIC) fir running the business operators. For the private company
it must regulates the corporate body according to the state and territory in Australia.
As the incorporated company is a proprietary company then it must follow the regulation
of the Corporation Act 2001. Under the terms of the corporation act, a company must co-operate
with the issue of bonus shares. When a company formed, it becomes a corporation, which sets a
completely separate legal entity under some specific legislation. The Corporation act helps to

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incorporate with the company, the body of the corporate and certain unincorporated bodies,
which are completely exempted from public authorities.
A company may corporate with partnership business where according to the Partnership
Act 1892(NSW). Under this act, a company can corporate with more than two partners. There
are no limits to enter partners under this act for the formation of a company with the terms of the
partnership. As per the facts of the case, those w formed company has no partners. It operated
with sole proprietor.
For the formation of a company, the trusts can able to carry the bushiness. Therefore, the
owner of the business can have a trust that will help to operate the business along with the
directors of the company. The trusty is the body of the corporation who helps holds the legal title
of the business and carries the trading activities with the assets of the corporation on behalf of
the beneficiaries. The trusty can operate the business individually or through a corporation with
the pursuit of lawful aim.
According to the Corporation Act, a company must register the business for corporate in
Australia. Fir setting the limited liability company, it must follow the regulation of the ASIC.
They must operate the business with a registered office in Australia. After the registration of the
business office, it must consist with a business name and conduct with IP mark of Trade Mark
check.
For the business check it must consists with a nine digit Australian Company Number
(ACN) where the company will quoted the publication, cheques, invoices and other related
official documents in the company. Along with the CAN number, another Australian Registered
Business Number (ARBN) also included after they are registered with ASIC.

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For operating with the tax system, the Australian Government has also set the Australian
Business Number (ABN), which consists of eleven numbers for maintained under the Australian
Taxation Office (ATO).
The Australian Securities Exchange (ASX) offers for the marketing trading in equities,
fixed interest securities, derivatives and future interest securities in the business, which is one of
the important part in the business.
The principal law relating to employment is the Fair Work Act 2009 (FW Act). The FW
Act covers all private sector employees in Australia, with a limited exception in Western
Australia.
Question 4
According to the case study, Dr Bones has a Lease Agreement with the lessor in his
recent living address a cluster of 7 retail shops in close proximity to Royal North Shore Hospital.
However he receives the urgent notice from the lessor about vacate the premises as the lease
expires on 31st November 2013. Dr Bones has remembered that the lease commenced on 1st
December 2011 and that has made for 3 years with a 1-year option negotiated verbally with the
lessor. Now Dr. Bones has recently entered into a negotiation with Dr. Bendit to to sublet part of
his rooms and hope that this can proceed so that he can supplement his rent repayment.
The terms of lease
Lease is a contractual agreement, which formed between two parties and the laser for using
any properties like building or vehicles or land. Under various conditions, a lessor has taken by
the lessee. The important terms of lease are:

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 the lease agreement must include the name of the parties
 the date of the starting of the lease and duration of the date when the lease will be over
 address and other relevant specific objects must be mentioned in the agreement
 the agreement must provide the condition for renewal or non-renewal of the agreement
 the amount of lease which will be provided to lessor by the lessee also mentioned in the
agreement
 the agreement must has a specific consideration for the security deposit and the process
to return the amount the specific list where the default condition and specific remedies is
available for the parties
 The other specific conditions like restrictive use maintenance insurance for loss of the
property should mention in the agreement for the termination of the contract clauses also
specific in the lease agreement.
For The lease all kind of private property or land any apartment can given as lease by the
owner and he grant to use the property for a certain periods. The term of the lease is depends
according to the features of grant the lease agreement for the property. It only applicable for a
certain of time with legally binding contract.
According to the Retail Leases Act, it governs Retail Shop Leases and agreements for lease.
It applies to basic leases and subleases and the Act makes no distinction between leases and
licenses as there is no requirement for a right of exclusive occupation. Under the Section 3 of this
act when the lease agreement formed between the lessor and lessee it provides the value of rights
for the occupation of the premises for the purpose the shop will be used. The section 6 of this act
provides the rights to enter into a retail shop lease. The section 7 has defines the preliminary

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issues for the lease agreement. The Zaoud vs Musico & Anor [2000]3 it has found that the
lessor’s wrongful withholding of consent to assignment of retail shop lease according to the
Retail Leases Act 1994 (NSW). In another case Goodlink vs. Sing & Ors [1999]4, a lease
negotiation has occurred through the application of Retail Leases Act (NSW). The effect of oral
lease has found under retail leases legislation in a significant case, which is Aspromonte vs.
Zagari [1999]5.
The sublease to Dr. Bendit
The section 42 of the Retail Leases Act defines the sub lease in the section 42 where this
provision allows the lessor to provide sub lease the lessee. As the matter in the negotiation, the
act never governs with the fact where lessee has any right to sublet or not. For the absence of the
absolute or qualified prohibition on subletting, it provides the premises should be sub let. Any
proposed right to sublet should sort out at the time of the negotiations. If there is no prohibition
then sub-letting is permissible. Therefore, according to the case facts, Dr. Bones has right to
entered into negotiations with Dr. Bendit, a chiropractor, to sublet part of his rooms.
3 NSW ADT 107
4 NSW ADT 71
5 NSW SA 381

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Reference
Aspromonte vs. Zagari [1999] NSW SA 381
Goodlink vs. Sing & Ors [1999] NSW ADT 71
Gurfinkel vs. Bentley Pty Ltd (1996) 116 CLR 98
Westpac Banking Corporation vs. Cronin (1990) 6 BPR 13, 105
Zaoud vs Musico & Anor [2000] NSW ADT 107