2015 MID TERM ASSIGNMENT FOR LST2BSL

1. Vladimir is a successful business person. He owns the Lew Hoa Shopping Complex at Norton Place. He has several shops vacant in the complex. Vladimir’s shopping complex Managing Agents place the following notice on the Lew Hoa Shopping Complex Notice Board in Norton Place on his behalf:

“Shop available for lease. Good rates, electricity included. Contact

Vladimir, MOBILE: 005566779”.

Sasha is anxious to find a venue to sell her range of dresses. She reads the notice and telephones Vladimir seeking a meeting with him. At the meeting on June 1^st Vladimir says that his terms of the lease are $1,000 per week for a 12 months lease but the tenant is to pay all outgoings including electricity. Sasha protests saying that the advertisement promised that all electricity charges would be included in the rental payment. Vladimir just shrugs his shoulders and says, “This is my offer. Go away and think about it. You had better get back to me soon by email as there is a lot of interest in the premises and I am actively looking for people as well”. Sasha leaves the meeting and goes home.

(i)Do you consider that Sasha would succeed in a claim to the effect that Vladimir should be bound by the advertisement on the Notice Board? Illustrate your answer with decided common law cases, providing the basis of your reasoning. (10 marks).

On the 5^th of June, that is 4 days after she had the meeting with Vladimir, Sasha decides to accept the offer that he had made verbally to her at the meeting. She writes out a letter in her own handwriting a letter to Vladimir accepting the offer. Sasha signs the letter, puts it in an envelope, affixes a stamp and posts it in a post box outside her local post office at 4 pm on 6th June.

On the same day that is the 6^th of June, Vladimir makes his weekly visit to ‘The Cossacks’ a local rugby club of which he is a prominent member and to which he has donated a lot of money. At the club Vladimir meets a fellow member , Milo. Milo says to Vladimir that he has some spare capital and would like to start up a business. Vladimir wants to be thought of as a good fellow and tells Milo that he has a shop vacant which would be ideal. He offers it to Milo for a year’s lease at $1,000 per week. Vladimir also says, “As a favour to you, Milo, I will pay all the electricity outgoings for the shop”. “That’s beaut. I accept your offer.”

When Vladimir comes to his office on the 7^th of June, he finds Sasha’s letter dated 5^th June accepting his offer waiting for him. Vladimir immediately telephones Sasha  and says, “Sorry, Sasha you are too late, I have already leased the shop”. Sensing Sasha’s disappointment, he adds, “I told you to be quick, didn’t I ?”

(ii) Sasha consults you saying that she desperately wants the lease of the shop. What advice would you give her? Once again, provide the basis of your reasoning outlining the legal principles. (10 marks).

Vladimir then starts up a conversation with Roberto another member of his football club. Roberto is anxious to start up a small business of his own. Vladimir offers him a shop fitted out as a coffee shop. The agreed rental is $1,000 per week. Roberto signs the lease. Business is not good and Roberto becomes worried when he sees other shopkeepers leaving the complex. He asks Roberto whether his rent can be reduced to $500 per week. Vladimir agrees in a conversation with Roberto at the club. There is no formal acknowledgement of this arrangement. For the next 20 weeks, Roberto pays the reduced rental and Vladimir accepts it. Vladimir hears a rumour that Roberto is going to give notice to terminate the lease. Vladimir is annoyed at this and sues Roberto in the Local Court to recover $10,000 “arrears in rent”.

(iii) Advise Roberto as to his legal position. You should cite relevant case law and provide the basis of your reasoning.  (10 marks).

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 Questions 2 to 11 TRUE/FALSE QUESTIONS

After you have finished writing out the answers to the three (3) parts of Question 1, please present the answers to the questions in the following form.

State the number of the question in digits and simply set down “TRUE or FALSE” directly after numbering the questions. Please make sure that you are setting out the correct numbers IN DIGITS. Each question is worth one (1) mark. The questions are as follows:

2. If I display prescription drugs with the price stated on each cardboard pack of drugs, I am making an offer to any customer who walks in. (TRUE or FALSE)
3. There is no limit to the number of people that I can make an offer to. (TRUE or FALSE)
4. There is no requirement for an intention to create legal relations in order for there to be a valid contract. (TRUE or FALSE)
5. In promissory estoppel there is no requirement for the promisor to unfairly break a promise.( TRUE or FALSE)
6. For equitable estoppel to apply parties need not be in a contractual relationship. (TRUE or FALSE)
7. The common law has provided solutions to all situations. (TRUE or FALSE)
8. In the case of Donoghue v Stevenson the court held that the manufacturers of the ginger beer owed no duty of care to the plaintiff as no contract existed between the manufacturers and the plaintiff. (TRUE or FALSE).
9. Historically, speaking legislation existed in Australia long before common law. The position is the reverse as far as the UK is concerned. (TRUE or FALSE)
10. The Australia Act 1986 (Cth) was passed in order for the States and Territories to maintain effective control of the Commonwealth.(TRUE or FALSE)
11. The Executive arm of the government in Australia is entrusted with the task of administering the laws of Australia. (TRUE or FALSE).

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INSTRUCTIONS

1. SUBMISSION DATE IS 5^TH OF MAY 2015. This takes the place of the original submission date which was stated in the Subject Learning Guide to facilitate better time management for students who have most of their other assignments due at the end of this month.
2. For the three essay questions, your word limit excluding references will be 1,800 words (for all three essay questions). The number of words used should be displayed at the end of each of the three parts of Question 1. You do not need to exceed the word limit, based on the questions asked. Remember to use the IRAC method in structuring your answers to the three parts of Question 1. Students should ideally set out what the issues are, the law or legal principles to be applied, the consequence of such an application to the rights and obligations of the respective parties and the basis of your reasoning. You may of course, cite cases.
3. As far as reference works are concerned, you are not expected to go into the virtual Law Library. What you are expected to do is to refer to the other recommended books on Business Law which have been set out for recommended reading in the Subject Learning Guide.

When you quote from other text books, the order of such reference in your text will be as follows: Name of the author(s); the full title of the book; state which edition it is and name of publisher; and most importantly, the page number or numbers you are quoting from. When you quote a case, provide the full name of the case, the volume of the law report and the page number from which you are extracting the information from. Use the Harvard referencing method which is to cite in brackets in the body of your essay the publication or law report references along the lines suggested.

Good Luck!