Business Law
BLO1105
Assignment
Semester 1, 2017
Answer questions 1 and 2.
Total marks: 30
Question 1
Josie makes a living painting watercolour pictures and selling them from her studio located in her house.
On Sunday 19 February, Sam visits her studio and admires a painting of sunflowers. The price tag indicates it is for sale for $900. Sam offers Josie $700 for it, but Josie says that she cannot accept less than $800.
Sam indicates that would be a good price but asks Josie to hold the painting so his wife could also look at it and approve his decision. However, Sam points out that the earliest his wife could do so would be the following Tuesday, 21 February. Josie said that would be fine and gives Sam a form that reads:
I, Josie, offer to sell Sam one framed picture of sunflowers for $800. This offer shall expire at midnight on Tuesday 21 February.
Signed: Josie
The following day, Monday 20 February, Wendy, an art enthusiast, visits Josie’s studio and is very impressed by the same painting. Without haggling over the price, she buys the painting for $ 900 cash and takes it away with her.
The same day, Josie phones Sam and leaves a message on his answering machine saying that the painting has been sold for $900. Sam does not return the call, apparently unable to retrieve any messages due to the machine being faulty for the past few days.
On Tuesday 21 February, Sam told his wife about the painting and she is very enthusiastic about it. She tells Sam to go ahead and buy it for $800. At 10 am that day Sam telephones Josie and after only managing to greet her, he is cut off as Josie’s telephone goes dead due to a flat battery. Sam is unable to continue the conversation and Josie does not attempt to call him back. Instead, an hour later, Sam decides to post a letter to Josie formally accepting Josie’s offer. The letter arrives in the mail at Josie’s house on Thursday, 23 February.
Required
(i) Advise Josie whether there is a binding contract with Sam. ( 11 marks)
(ii) For the purpose of this part only, assume a contract had been formed between the parties. Explain briefly whether a breach of contract has occurred and identify the remedies that might be available. ( 4 marks)
( In answering this question, address all the events that have occurred, describing their legal status or significance. Use IRAC format. Maximum 1,000 words)
Total for question1: 15 marks
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Question 2
The rule in Pinnel’s case expresses the requirement for consideration in simple contracts. Generally, the rule works sensibly and fairly, but there are some situations when it does not.
Discuss this statement, and explain the circumstances in which courts see it as unfair to apply this rule.
( Answer in essay format: maximum 1,500 words)
15 marks
Assignment Instructions
Overview of the task
Task: Assignment consisting of two questions
Total marks: 30
Total length of both questions: 2,000 (minimum) - 2,500 Words ( not including footnotes and bibliography)
Due Date:Week 9 of the semester.Please refer to closing date and time specified in Assignment Dropbox.
Details of the task
· The assignment is to be completed individually and requires students to undertake their own research of academic materials outside of those prescribed or provided in the unit as a basis for their completed assignment (e.g., legal journal articles, case summaries, other texts).
· Students mustread and follow all instructions carefully and familiarise themselves with the VU Academic Integrity and Plagiarism policies.
· Question 1 of the assignment should be written using the IRAC method. Question 2 should be written in the style of an essay.
· Statements shouldbe supported with appropriate references to Australian law (cases) and relevant articles/journals. Students shouldbe wary of using internet sources that are not of acceptable academic standard.
· A bibliographyis required.
· Referencing style: AGLC. For details, see https://www.vu.edu.au/library/get-help/referencing/referencing-guides
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Preparation
The potential topics covered in the questions include topics up to Week 4, as well as one other topic beyond Week 4.
Students are expected to review thetopic (i.e., lecture materials and relevant chapters of prescribed text) as well as to conduct more in-depth research into the topic using a variety of reputable academic resources.
It is recommended that begin researching the assignment as early as possible.A markingrubric for this task will be made available in the Assessments module of this space.
Assessment Criteria and Submission
All assignments are to be submitted electronically via the Assessment Dropbox provided. Assignmentswill be submitted viaTurnitin, whereoriginality reports will be generated can be viewed.
Students should endeavour to achieve less than 30% similarity. Students may submit multiple drafts until the due date.
An assignment declaration form must be submitted with the assignment.
Marc Posthouwer,
Unit co-ordinator, BLO1105 (SY).
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