Business law case study questions and answers

HA Business LawTri 3, 1. Margaret owned an antique store that specialised in rare porcelain dolls. When she opened the business init was at a shop in an eastern suburb of Melbourne.

Business law case study questions and answers

The given questions have been answered below. Is there a valid enforceable contract between Chen and John? The question that has been given, itself is the issue, which is, if the contract between Chen and John is a valid one?

The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchanges "consideration" to create "mutuality of obligation. When the definition of the contract is analyzed and the given situations is considered it can be seen that it lies parallel to one another.

It also creates a mutual obligation between them which is that John would build the extension of the house within the given period of time and Chen in return will give him the payment they have agreed upon.

And the situation given fulfills all the given criteria; hence the contract between John and Chen is a valid enforceable contract. Case law where the offer was a valid one: What arguments could Chen use to support his refusal to pay John more than the Original agreed price?

Here the terms and the considerations has already been decided and no clause has been put in, as to change in either because of unforeseen circumstances, and since when entering into a contract the parties are into a mutual obligation to complete the given work within the stipulated time, Chen can refuse to pay on the basis of breach of duty or the mutual obligation by the other part John - Contract Law Analysis: What we see is that Chen had agreed to pay the given price only on one condition that is the extension should have been completed by June, which certainly has not been done.

When the only reason on which the extra payment was agreed upon is not kept in mind by John, Chen can hence deny the payment on ground of breach of duty of John, and can therefore refuse to pay the extra charges that John had asked for. Hence there are reasons which Chen can when he refuses to pay the extra amount of labor cost as his work was not done according to the terms of the contract.

What arguments could Chen use to support his claim for compensation for the hotel? Punitive damages are not available. The loss claimed must not be too remote from the breach and the non-breaching party must do what is reasonable to reduce mitigate the damage they suffer.

Business law case study questions and answers

And this was the only reason why eventually and reluctantly Chen had agreed on paying more labor cost to John. Johnson v Perez CLR at By brining in the estoppels method, John can claim that Chen had actually promised him to pay the increased amount of labor cost and the material cost which on completion of the house extension, he cannot refuse to pay.

It was only after Chen had agreed to pay for the increased prices that John had started working. This case may also see the reference where the third party labor force used by John to complete the completion of the house is used, and thus their payment has to be made as well from the payment that comes from Chen.

Topic 2 Common law elements of contracts. Last accessed 14th Jan Damages and Equitable Compensation in a Commercial Setting. Australian Contract and Consumer Law. We are committed to resolving students' all academic problems and help them acquire higher grades.

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Business law case study questions and answers

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