Business Law Exam (Please be online on time) – four cases analysis 2hrs
Hi, actually I’m looking for someone who can do a business law exam. It’s an exam with four cases analysis, and you have 1hr and 40mins. Please refer to the attachments.Please arrive on time, I will send you the questions through the platform, so that you can give me the answer.Since there are time differences, once you take this order, please tell me where you are, I’ll convert it to your local time so that you can know when you should be online.(Exam start time: Beijing 3pm-5pm)Thank youQuestion 1
Rick operates a cartage service. Jake is in the business of supplying medical
equipment to hospitals in Victoria. Jake enters a one-year contract with Rick for the
delivery of equipment to hospitals. Jake signs (without reading) a standard form
contract given by Rick. The contract contains the following terms:
Rick will pick up the equipment from Client’s (Jake) factory in Melbourne and will drive
to the designated hospital to drop off the equipment.
“All goods are transported at the owner’s risk. Rick shall not be liable for any loss or
damage to the Client’s (Jake’s) property howsoever such loss or damage may be
On this occasion, Jake gets a call from Wodonga Hospital to supply a ventilator
(machines used to treat COVID-19 and pneumonia patients) that is urgently required
for a COVID-19 patient. Jake calls Rick and asks him to pick up the ventilator from his
warehouse and deliver it to Wodonga Hospital. However, he does not disclose the
urgency of delivery as on all past occasions Rick has been extremely quick in
delivering the equipment.
Rick picks up the ventilator from Jake’s warehouse in Melbourne and proceeds
towards Hume Freeway (M31), which is the shortest route to the Wodonga area (see
map below). On his way, Rick gets a call from his friend, Aslam, who invites him to
stop by for a lunch at his kebab café, next to Lake Nagambie, which is 50kms off the
main highway (M31) to Wodonga. While Rick was enjoying kebab at Aslam’s café, a
drunk driver hit his parked truck from behind. The truck topples and the ventilator is
broken into pieces. Rick informs about the accident to Jake and the Wodonga
Hospital. Jake is very upset as he had purchased the ventilator for $120,000 and had
invoiced Wodonga Hospital $130,000 including the delivery fee.
Due to the failure in the supply of the ventilator on time, the Wodonga Hospital
patient died. The hospital board members have decided not to give any equipment
orders to Jake in the future. Jake used to make $50,000 annually from equipment
orders from Wodonga Hospital. He is very disappointed and distressed as his annual
income is halved and he will struggle to make mortgage repayments for the $2
million house that he has recently bought. Jake wants to sue Rick for all remedies
that are available to him under contract law.
Advise Jake of the remedies, if any, he may have under the contract law. Cite
relevant cases. (10 marks); max 500 words
(10 marks); max 500 words
There main issue in this question is whether the terms in the contract will be considered as a
part of the contract (incorporation) and if so how will a court interpret such a term
1. Incorporation by signature.
Parties to a contract are bound by all the terms contained in a signed contract –
whether or not they have been read and understood (L’Estrange v Graucob). Jake
signs (without reading) a standard form contract given to him by Rick. In Toll v
Alphapharm Ltd the High Court of Australia held that “a person who signs a
document, which is known by that by person to contain contractual terms, and to
affect legal relations, is bound by those terms, and it is immaterial if the person has
not read the document. Given that the cartage contract was for the whole year and not
a one-off transaction it is unlikely that a reasonable person will consider it as a
delivery docket or receipt. No docket or receipt was given by Rick to Jake when he
picked up the goods (DJ Hill v Wright). Thus, the terms in the contract are Jake is
bound by the terms for all the deliveries that Rick does for him during the contract
period. Now that incorporation is established the next issue is interpreting the terms of
the contract. (3 marks)
2. Interpretation of the terms
The rules regarding interpretation of the terms in the contract depends on: 1) what a
reasonable person would have understood the terms to mean; 2) considering the
language and surrounding circumstances – i.e. see the whole document not just the
clause and 3) any exclusion clause will be interpreted strictly, and any ambiguity will
be interpreted against the party relying on it. In interpreting the exclusion clause, ‘all
goods are transported at the owner’s risk…loss or damage may be caused.’ the court
will read the whole contract. The contract requires Rick to pick up the equipment
from Jake’s factory in Melbourne and drive to the designated hospital to drop off the
ventilator. Rick has deviated from the route by going to Nagambie for lunch.
According to TNT v May and Baker any unauthorised deviation in the route is a
breach of contract and exemption clause will be ineffective. (3 marks)
3. To calculated remedies available to Jake we look into Robinson v Harman – rule that
is to ‘–put innocent party (Jake) in the same position he or she would have been in if
the contract had been performed properly . ’by Rick. Three principles need to be
satisfied for remedies.
i. Losses must be caused by a breach of contract, no doubt Rick’s breach of contract
caused $130,000 of loss as well as an annual hospital order of $50,000.
ii. Plaintiff has a duty to mitigate loss – May be when Rick informed Jake he could
have sent another ventilator to the hospital.
iii. Remoteness principle –According to Hadley v Baxendale first limb Rick is
responsible $130,000 loss as it arises naturally because of the breach. However, as
Rick was not aware of the annual contract of $50,000 this loss will not come under
Hadley v Baxendale’s second limb. (3 marks)
In conclusion, Jake can claim damages of $130,000 from Rick but not for future
orders ($50,000) or for any disappointment and distress. (1 mark)
Han Yu has a strawberry farm on the outskirts of Melbourne. He contracted to sell 200kgs of
strawberries to Julie who has a jam factory in Richmond, Melbourne. The strawberries are to
be delivered on 1 August 2020. The contract price was $2000 of which $500 was paid in
advance by Julie. Just before sunset on 31 July, Han Yu picks the strawberries and loads them
in his truck to deliver to Julie’s jam factory the next day morning. Unfortunately, that night
there is a fire in overhead power lines near Han Yu’s house and the power lines fall on the
main road that connects Han Yu’s house to Richmond, Melbourne. The emergency services
say that it will be a week before the fallen power lines will be removed and the roads
reopened. Han Yu cannot drive to deliver strawberries as promised and informs Julie about it.
Julie is upset and asks Han Yu to return the $500 that she had paid to him. Han Yu refuses to
return the money.
Please advise what remedies are available to the parties under the contract law. Cite relevant
(5 marks) max 250 words
The issue here is whether contract for delivery of strawberries between Han Yu and Julie
is terminated by frustration. A contract is frustrated when the performance of the
contract becomes illegal, impossible or radically different as a result of the frustrating
event. In Taylor v Caldwell the destruction of the hall by fire made the performance
impossible. Similarly, in this case Han Yu was ready with strawberries on the evening of
July 31 to deliver it the next day but in the night a fire broke out and the power lines fell
on the main road. The fire to power lines and them falling on the road could not be
foreseen by Han Yu and Jake; nor it was because of Han Yu’s fault. The parties also did
not mention anything about any such an event in the contract. Therefore, on grounds of
frustration the contract for delivery of strawberries between Han Yu and Jake will be
automatically terminated from the date of fire. Under common law Future obligations of
Jake and Han Yu are discharged and liabilities already accrued remain. According to Fair
Trading Act 2012 (Vic) ss37-38 –court has discretion to fairly distribute the loss, and may
ask Han Yu and Julie to share the loss. (5 marks)
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