The attached is the assignment question for business law
LAWS 1018 – SP5 2021 – Assessment 1 Problem Questions – Short Answers LAWS 1018 SP5 2021 Problems - Short Answers Assessment 1 Due 18 September 2021 at 11:00pm 2500 Word Limit (750 – 900 words per question) INSTRUCTIONS There is no set format for this document just that it is set out clearly in 1.5 line spacing and a minimum font of 12. Word count is 2500 and does not include headings or referencing. There is an acceptable 10% (+/-). Word count exceeding 2500 (+/- 10%) will be penalised 5 marks per 100 words. NOTE: Word count DOES NOT include headings and referencing Late submission penalty – 10 marks per day Referencing must comply with Harvard (or AGLC if you are a law student). You must include Case Law in your answers. There must be at least 1 case cited per answer. However, you can cite more Case Law per answer if you need to. Contract Law Question 1A – Offer and Acceptance Gary wishes to sell his commercial fishing vessel as he has no use for it anymore, so he advertises it for sale for $100,000. Brenda phones and says she will buy it at that price. However, when talking to Brenda on the phone, Gary says he has changed his mind about selling. Nevertheless, he mentions that he might be open to selling but that he would charge $120,000 for it if he decides to sell. Brenda then offers $110,000 but Gary says he needs to think about it. A couple of days later, Gary is suddenly in need of lots of cash. He phones Brenda, saying that he accepts Brenda’s offer of $110,000. However, Brenda says she has changed her mind and doesn’t want to buy the commercial fishing vessel anymore. Analyse the communication between Brenda and Gary and advise them of their individual contractual liabilities. (10 Marks) Question 1B – Consideration After the fiasco of the negotiations with Brenda, Gary has decided that the best way to make money from a commercial fishing vessel is to lease it for an annual rental fee. In 2010, Gary leased the vessel to his cousin, Sam, for 10 years at an annual rental of $10,000. In 2012, it became apparent that scallop numbers were declining, and Sam soon realised that he would be unable to meet the annual rental charge unless the catch improved. He approached Gary and advised him of his fishing and financial difficulties. He also complained that the engine in the commercial fishing vessel was not as powerful as he had been led to believe. Gary denied that he had ever made any promises or statements about the engine power. However, he said that he was prepared to halve the annual rental until the catch improved and, accordingly, the rental charge was reduced to $5000. Gary signed a document to this effect. In 2015, the catch improved to such an extent that Sam is able to resume paying $10,000 a year. Gary was delighted and advised Sam that not only did he have to pay $10,000 a year until 2020, but also the $15,000 forgone by Gary in the previous three years. Advise Sam whether he must pay the $15,000 claimed by Gary. (10 Marks) Question 1C – Exclusion Clauses After the lease ended in 2020, Sam terminated his lease and returned the commercial fishing vessel to Gary. And then the COVID lockdowns came. Gary realised that as a commercial fisherman, he would be considered an essential worker. So, he decided to become a fisherman again instead of just a landlocked fishmonger. After two weeks of going out to sea, the commercial fishing vessel had mechanical problems. It happened while still on the docks. Gary telephoned his local boat repair shop, Port Adelaide Boat Motors, who agreed to send out Bert, a mechanic, to repair the vessel. Bert arrived in a towboat. After diagnosing the problem, he told Gary that the vessel could not be repaired at the docks. Bert said that the vessel would have to be towed to the shipyard. Gary agreed to this. Bert winched up Gary’s commercial fishing vessel in order to tow it to the shipyard, but a worn clip on the towing gear being used by Bert slipped open, allowing the vessel to break free. The commercial fishing vessel drifted and crashed into the pylons. The bow of the ship and one of the outriggers was severely damaged in the crash. Displayed on the back of the towboat was a notice: All towing takes place at customer’s risk. Port Adelaide Boat Motors and their employees accept no liability for any damage, injury, or consequential loss, whatsoever caused, while a vessel is being towed. Did Port Adelaide Boat Motors provide reasonable notice of the exemption clause? Can it be part of the contract with Gary? (10 Marks)