IRAC style

  • Category:
    Law
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1755

Assignment Questions.

Practice question 2

Bob v Stalin

The issue is whether Bob has a legal right to rescind the contract. This is after Stalin indicated that he will be able to access the daily gym activity which was not the case. This led to Bob refusing to pay the amount and indicated that he has cancelled the contract.

Under the contract law, a contract can be rescinded under various circumstances. The recession of a contract usually lead to its termination with the parties going back to the same as they were before the contract was entered. According to the common law, a rescission can only take place if the contract was fully formed (Gibson & Fraser, 2015, p310). Problems during the formation of a contract are a ground for recession. Mistake is one of the grounds for the contract to be rescinded. A mistake involves a contract being entered due to reliance upon or belief in mistaken fact. Fraud is a los a ground for termination of a contract and it occurs due to misrepresentation of facts by another party. Coercion is also a ground for termination of a contract.

Application

Stalin indicated to Bob that he will be able to access the gym on a daily basis which influenced his decision to enter into the contract. This is despite Stalin being fully aware that his facility does not provide daily access to the gym services. His action amounts to coercion as well as fraud which are a ground for rescinding a contract. This was highlighted in the case of Leaf v International Galleries1. There was a mistake on the part of Bob in signing the contract as he believed he will be able to access the gym on a daily basis.

Conclusion

Bob has legal rights to rescind the contract due to the presence of a mistake, coercion as well as fraud that influenced his decision to sign the contract.

Bob v Wizard

The issue is whether there is a valid simple contract between Bob and Wizards. This is after the terms changed when Wizard had already accepted the contract before the changes.

According to the postal rule, acceptance of an offer takes place when communicated (Gibson & Fraser, 2015, p231). The acceptance takes effect when the letter is posted. This means that when the letter is dropped in a post box or handed to a postal worker acceptance takes place. The post office is considered as an implied agent when the means is used. By using the postal means, the parties are perceived to have accepted the risk involved including delay. The posting rule is however applicable only for the purposes of acceptance and not revocation. According to the contract law, a letter of revocation can be effective only when it is received.

Application

Wizard sent an acceptance offer to Bob on 10th April. In accordance to the postal rule, the offer was accepted on 10th April. However, Bob had sent a letter indicating change of plan on 9th. The letter can be considered as a revocation to the first offer. It can therefore not be considered valid in terms of changing the terms of the offer. The letter from Bob was received after Wizard had sent the acceptance letter and it was therefore too late to revoke the offer. In the case of Stevenson, Jacques & Co v Mclean it was highlighted that a letter revoking an offer is not effective until it is delivered2.

Conclusion

A simple contract between Bob and Wizard is valid and it involves the earlier agreement to deliver the spare parts at $ 500 each including the machine parts.

Question 3

Council v James

The issue is what type of law is city by law and whether James has committed any offence under it.

The city by law is a delegated legislation and it forms part of a statute law (Gibson & Fraser, 2015, p97). In most cases, definitions are usually provided in order to ensure that the law is clear and it can be applied effectively. When there are no definitions regarding legislation, the common law rules and maxim of ejusdem generis is applied. This means that the general words are read narrowly in terms of the specific word. In the case of Watt v Trail, the judge indicates that where specific words are followed by general expressions, the expression is limited to the characteristics of the specific words although it may ordinarily have a broader meaning3.

Application

The city by law is a delegated legislation that is applicable in the case of James. The presence of the words “Any acts whatsoever” gives rise for ejusdem generis. Although James was not sing, shouting, speaking or playing a musical instrument, he was dressed in a guerrilla suite. This can therefore be interpreted as any act whatsoever causing obstruction to traffic. The activities of James were attracting attention and could lead to obstruction of traffic.

Conclusion

In conclusion, the city by law is a statute and James has committed an offence based on its wording and lack of definition.

James v Hopeless

The issue is whether Hopeless has any defenses if charges of negligence are instituted against him by James. This is after James sustained a serious injury when being driven by Hopeless who was not sober and driving on the wrong side of the road.

Volenti non fit injuria is one of the defenses that can be used by a person accused of negligence (Gibson & Fraser, 2015, p148). This common law doctrine states that is a person willingly places themselves in a position where harm might result or knowing that some degree of harm might result, they are not able to bring a claim against the other party for damages. However, according the common law, the risk is only limited to what a reasonable person would consider as having summed by their actions. The doctrine also considers the voluntary assumption of risk.

Application

James voluntarily accepted the lift from Hopeless and even notices that he was drunk. He had an opportunity to alight from the vehicle when it dropped the first passenger. However, despite the knowledge that Hopeless was drunk, he opted to continue with the journey. In the case of Morris v Murray, the court of appeal rules that the passenger should not be paid any damage4. This is after voluntarily accepting a lift from a drunk driver who cause the accident and died leaving the passenger injured. Although the passenger was also drunk it was not to the extent that he would not realize the risk of taking a lift from a drunken pilot.

Conclusion

Hopeless has a defense against James if sued for negligence. However, he has to admit being drunk and to prove that James knew about it based on his actions.

Question 4

Rich v Alana

The issue is whether a remedy and equities for breach of contract is available for Rich. This is after Alana breached the contract due to rumours that an international collector willing to pay doubles the amount that had been offered by Rich.

An anticipatory breach of contract usually occurs prior to the performance date of the contract. Under the common law different forms of remedies exist for anticipatory breach of contract. The remedies include damages and discharge by breach. The damages are mainly aimed at return the plaintiff to the same financial position if the contract has been performed. Discharge by breach involves remedies to the innocent party for the termination of contract. The equitable remedies include an injunction which is a court order that requires the party to carry out its obligations under the contract (Gibson & Fraser, 2015, 408).

Application

Rich can apply for damages in order to be compensated for the losses suffered due to the breach of contract. However, sine Rich is interested in the specific artwork, he can obtain an injunction which may force Alana to fulfill her obligation to the contract and sell to him the artwork. This is however dependent on the decision of the court. In the case of American Cyanamid Co v Ethicon Ltd, a test for interim relief was set by the court5.

Conclusion

In conclusion remedies and equities for breach of contract are available for Rich with the injunction being the most effective. However, the answer would not be the same if the painting was widely available as it would have been easy to obtain the same from different arts dealers.

Alana v Theatre

The issue is who take action and what would be the assessment for damage if there is a breach of contract in the presence of an implied term that was not mentioned to Alana.

A contract may have express or implied terms. The express terms is usually made prior to the contract while the implied terms involves a notice which has to be understood by both parties to the contract. When dealing with the implied and express contract terms, factors such as loss, remoteness and causation has to be considered (Gibson & Fraser, 2015, 364).

Application

In the case of Hadley v Baxendale, loss of business was caused to the plaintiff as a result of the defendant failing to deliver within the agreeable date6. Alana was not provided with all the information and the actions can lead to loss of business. This is financially in the form of $ 500 in taxi fares and loss of customers as an upset about missing the show. The reputation of the business is may be affected as a consequence of the breach by the theater.

Conclusion

In conclusion, Alana may take legal action against the theater and the assessment for a assessing the damages caused is based on the loss suffered by the business as the consequence of the breach.

References

Gibson, A., & Fraser, D. (2015). Value pack business law (9th Ed.). Melbourne, Victoria: Pearson Australia.

Leaf v International Galleries [1950] 2 KB 86

Stevenson, Jacques & Co v Mclean (1880) 5 QBD 346

Watt v Trail (2000) 190 DLR 4th 439

Morris v Murray [1990] 3 All ER 801

American Cyanamid Co v Ethicon Ltd [1975] AC 396

Hadley v Baxendale [1854] EWHC J70

1
Leaf v International Galleries [1950] 2 KB 86

2
Stevenson, Jacques & Co v Mclean (1880) 5 QBD 346

3
Watt v Trail (2000) 190 DLR 4th 439

4
Morris v Murray [1990] 3 All ER 801

5
American Cyanamid Co v Ethicon Ltd [1975] AC 396

6
Hadley v Baxendale [1854] EWHC J70