ACBUS201A Commercial Law Case Study Assessment 3 Questions Answers
- There was no offer in the prescribed manner between Audrey and XYZ Tours. Audrey had the telephonic conversation with Tommy who was the representative of the Company but she didn’t give her acceptance, so there could not be contract between them. So, the both parties cannot enforce it (Edelman, 2012). In a relevant case of “Entores Ltd v Miles Far East Corporation  EWCA Civ 3”, Lord Denning held that there should be a communicated acceptance to form a valid contract.
Audrey was the employee of NSW Wealth managers Association, so there was no formation of contract between XYZ Tours and NSW wealth managers Association. Audrey posted a letter for confirmation of booking but according to the policy of XYZ tours, the booking must be online, so the contract cannot be formed.
- An agreement was formed between NSW Wealth managers Association and DEX Outfitters for manufacturing the jackets for delegates who will participate in the conference. But the shop owner delivered the goods below the standard and quality as decided at the time of formation of contract. NSW Wealth mangers Association is not bound to accept the performance of the contract. Audrey can repudiate the contract as the shop owner has not abided by the obligations of the contract. This contract would be considered as voidable contract (Twyford, 2007). In a relevant case of The Sibeon and The Sibotre , the negotiated rates were set aside by the parties on the grounds of economic duress.
- There was the contract between “A Class Travel” and NSW Wealth Managers Association and it is a valid contract, so the travel agency can enforce the contract but due to supervening impossibility, the contract cannot be enforced before the court. So the booking and facilities can be cancelled as the contract cannot be performed as there was the condition precedent for performance of contract. To deal with such condition, the legal principle of doctrine of frustration can be implemented (Doneley, 2018). In the case of “Dickson v James B. Fraser & Co Ltd  AC 265”, it was stated that if enactment of legislation makes the contract illegal then it can be considered as a cause to frustration of contract.
- There is the breach of contract by the tour agency in making the appropriate arrangements for the accommodation of delegates as the association thought to reschedule the conference at Katoomba in Blue Mountains regions of NSW. The tour agency breached the contract; hence the association can claim the damages. The association can bring an action for damages for inconvenience made to the delegates due to inappropriate arrangements in the accommodations (Mawdsley, & Cumming, 2008). These damages for the inconvenience in contract can be punitive, compensatory or incidental damages.
- There was the valid contract between Audrey and DEX Outfitters for manufacturing of jackets for the delegates who will participate in the conference. So the Audrey on the behalf of NSW Wealth Managers Association is considered as consumer. As per section 3(3)(a), a consumer includes any person who renders the services or supplied the goods of worth $40000 or the goods or services availed or rendered for personal, domestic or household use or any vehicle or trailer acquired for transportation of goods by road. There is one clause that if the goods or services are acquired to resupply or using it in trade or commerce. So the NSW Wealth Managers Association shall be deemed as Consumer (Bowley, 2019).
- As per section 54 of ACL, the acceptable quality of goods should be delivered to the consumer. It was described in section 54 (3) (c) (d), for the purpose of matter of acceptable quality, any statement made about the goods or a representation made for their label or packaging by the manufacturer or supplier shall be regarded as the promised quality of goods which should be delivered to the consumer. Here, the shop owner represented that he would manufacture the jackets in the good quality and cotton fabric but he has not provided the goods in the standardized quality as promised at the time of the formation of contract. The shop owner manufactured the goods below the standard quality and embroidered the 2010 instead of 2020. So the shop owner has committed the breach and he would be liable to pay the damages under the contract law as well as consumer law for protection of the rights of consumers (Fleming, 2017).
- The Precedents are the judgments or decisions of the higher court which are given by the interpretation of common law provisions and stated after reviewing the present and dynamic conditions of the society. The precedents are also termed as stare decisis.
Common law is also known as case law and depends upon the detailed view of the case studies because the case laws come before the court for the interpretation of law in case of ambiguity in the provisions of the law. This law comes from the opinions and interpretation of judges. The ultimate goal is to set the results by application of standards of interpretation. While the precedent varies according to nature of the case and jurisdiction of the court. The jury interpret a case on the basis of the merits of the case. Common laws are used to formation of new legislations which are to be written.
Hence, the common law and precedent are useful for regulation of modern business practices. Originally, the legislation is applied and then, if there is any ambiguity in the legislation, the jury would analyse the cases and legislation and establish the harmony between the objects of the legislation and the provision of law (Winfield. 2016).
- Precedent is the legal case that set up the principle or rule. These rules or principles are used by other judicial bodies or court when deciding the cases. The precedent is the external source of the interpretation of the statutes and it helps to establish the principle interpretated by the jury or judges. In the disputes, the judges analyse each fact minutely and decide the cases by establish the principle or rule. The judges make the precedent for the other judicial bodies or court which are lower in the judicial structure. Precedents are given on the basis of facts of the case and judges analyse the legislation and its relevant provision. Whether there is any preamble or object of the provisions. The judge sees the current scenario of the society and suggest the necessary changes to be made in the legislation. They compare the provisions of the legislation with the current position of the remedies the general public intend to seek from the law (Keeton, 2017).
Hence, the judges play an important role in the interpretation of the provisions of the statutes and apply them in the modern business practice. They made the precedent according to the changes required as the time is changing so the business practices are changing according to the time. The judges made the precedent as per the case require and by applying the principles of the natural law of justice and give the remedies according to the common law. The legislatures are responsible to make the laws according to the nature of the law (Eldridge, 2019).