ASSIGNMENT 1Weight: 25%Word length maximum: 2500 wordsIf the word limit is exceeded marks may be...

Question

ASSIGNMENT 1Weight: 25%Word length maximum: 2500 wordsIf the word limit is exceeded marks may be deducted where the excess is caused by irrelevant materialQUESTION 1 (13 marks)The following communications passed between Eddo Products Co, a New Zealand business based in Auckland, and Vestley Co, a business based in NSW.1. Letter posted on November 1, and received by Vestley Co on November 5, from Eddo Products Co: “Please quote us price per tonne of canned mango fruit Grade B”.2. On November 6 Vestley Co replied by letter: “We can supply canned mango fruit Grade B at $900 per tonne. Cans are in 50 gm, 100 gm and 150 gm sizes and your order would consist of a fair distribution between these sizes. Delivery would be in equal monthly shipments commencing on February 2”. This letter was received on November 12.3. Eddo Products Co sent an email on November 13: “Your offer to supply one tonne of canned mango fruit Grade B is accepted. Our formal order follows”. This email was received on the same day.4. On November 19 Vestley received an order form from Eddo Products ordering one tonne of canned mango fruit Grade B. The order form stated:Can sizes must consist of a fair distribution of sizes as specified by you in your letter of November 6”.Printed at the foot of the order form was the following: “All orders subject to the standard contract terms of the International Fruit Trading Association”.5. Vestley Co sent an email on November 16: “Thank you for your order. We note your acceptance of our terms”. The email was received on the same day.You are required to discuss the following:a. Is there a concluded contract between the parties? 9 marks for discussion of the legal significance of each of the communications.b. If there is a concluded contract, what are the terms of that contract? 4 marksIn your answer state the legal effect of each communication.You are to assume the law of NSW applies.Refer to relevant legal authority in support of your answer.QUESTION 2 (12 marks)Becky owns a suburban parking station. The station is managed on her behalf by Tom, although Becky occasionally acts as manager. At the entrance to the station an automatic machine issues customers with a ticket which has printed on the front:‘Customers are kindly requested to note that vehicles are parked only on the conditions displayed on the premises’.The conditions are displayed on a notice attached to the wall of the office to which customers go to pay the parking fees prior to removing their cars from the parking station.The notice reads:Condition of ParkingThe station is open from 7 am to 10 pm daily except Sunday. Charges are $5 per hour or part thereof; for vehicles left overnight an additional fee of $250 is payable.Becky regrets that neither she nor her employees can accept any responsibility for any harm, loss or damage whatsoever.When customers pay the parking fees they are given a document headed ‘Receipt’ which indicates the amount paid and also repeats the words of the notice on the wall.Con, Debbie and Friedrich all recently parked their cars at the parking station. They had each used the station about once per month over the past year, but had never read the ticket, the notice or the receipt (all of which have been in use in exactly the same form throughout this period).Con’s car was stolen when a thief persuaded Becky he was the owner of the car and had lost his ticket, whereupon Becky allowed him to drive the car away. The car has not been recovered. Con becomes very angry when Becky said to him: “I have no liability. Check your receipt and the notice on the wall”When Debbie came to collect her car, Tom, the manager of the station on that day, was assisting another customer who had trouble parking his car. During this process Tom carelessly drove over Debbie’s foot, causing her considerable injury.Friedrich got into a drinking session after work at the local pub, forgot all about his car until after the station had closed, and was outraged when the next morning the cashier at the parking station demanded payment of $250 in addition to the normal parking fee. He refused to pay the $250.Becky is threatening to sue Friedrich for $250.Con is threatening to sue Becky for the value of his car, and Debbie is threatening to sue Becky for compensation for her injuries caused by Tom.You are required to:Advise:1. Con2. Debbie, and3. Friedrichof each of their possible legal rights or liabilities. For each party, 4 marks allocated to the discussion of the advice given.Refer to relevant legal authority in support of your answer

Robert · Accepted Answer

Running Head: LAW   1
LEGAL STUDIES
Running Head: LAW   2
Answer 1 
Fact  
Vestley Co gets a letter for the quotation of the supply of canned mango fruit from 
Eddo Products Co. Vestley Co replied to Eddo Products Co through sending an email which 
explained about the price of per tonne order. After this, Eddo Products Co also gave another 
mail with an order form to the seller. After receiving this letter, Vestley Co also gave a thank 
you letter through email to the buyer company.   
 Issues  
Is there a concluded contract between the parties?  
What were the terms of the contract?  
Rule 
According to the contract law of NSW, for making a valid contract that should be a 
concluded contract, there are some terms which should have to take place between the 
parties. Without these terms of contract, a valid and lawful enforceable contract may not take 
place between the parties (Davis, 2012). According to the law in NSW, parties should have to 
make a written contract for value of more than $5,000. If the value of the contract is less than 
$5,000, parties can make an oral contract also (Phillips & Tooma, 2004). But there is a need 
for proper communication between the parties that entitle the parties to set the obligations of 
the parties against each other (Gillies, 1988).  
Australian Consumer Law (ACL) is also known as a law of NSW that described the 
following basic elements which should have to present to a valid concluded contract: 
An offer: There should be a valid offer that can be performed by the party in any 
predictable situation (Gillies, 1988).  
An acceptance: Offer should have to accept by the other party. It includes the terms of 
action, which will take place after the making of a valid contract (Phillips & Tooma, 2004). 
Running Head: LAW   3
Consideration: After acceptance, the consideration takes place which defines the 
transfer of money in against the supply of product (Phillips & Tooma, 2004). 
 For making a concluded contract, an exchange of letter was taken place between the 
parties in case that helps in deciding whether an element of the contract was established or 
not. Otherwise, the contract cannot take place if any element was absent.   
Letter posted on November 1: 
On November 1, Eddo Products Co gave a letter to Vestley Co to know about the 
quotation of the canned fruit that is offered by the company. After then, Eddo Products Co 
received a letter from Vestley Co in which the company makes an offer to Eddo Products Co. 
In this offer, the company explained about price of per can fruit and also defined the 
minimum quantity of the order would be one tonne. In offering, Vestley Co also explains 
about the term related to the possible date for the order supply.  
This communication between the parties establishes the term of offering because 
which gives the base for the formation of a contract between the parties. In the judgement of 
AGC (Advances) Ltd v McWhirter Supreme Court of New South Wales (1977) 1 BLR 9454, 
Australian Supreme Court held that only offer is reasonable responsible to lead a law binding 
contract between two or more than two parties (McKendrick & Liu, 2015). If there is no 
offer, contract cannot get birth.  
As per the situation explained in the case, there was an offer that was given by the 
seller to the buyer after the request of buyer.  
Reply of letter:  
After receiving a letter for the quotation, Vestley Co sends a letter to Eddo Products 
Co in the reply of the first letter in which it explained about the size of cans and value of per 
tonne order. This letter describes the intension of the seller towards the buyer. It means the 
seller was ready to make the contract with the buyer of cans fruit. On the other hand, the 
Running Head: LAW   4
letter from the buyer to Seller Company for the quotation of the product describes that the 
party was intended to make the business contract that means the intension of the party was 
good to make a binding contract if the terms of contract meets the requirements.  
Court of Appeal in Australia held in a case “Carlill v Carbolic Smoke Ball Co Court 
of Appeal [1893] 1 QB 256; [1892] EWCA Civ 1” that an valid contract can get existence if 
the both parties have the intension to make the contract and both accept the term of offer 
(McKendrick & Liu, 2015). Further, the court also held that the term of the contract would be 
the offer that was given by the seller to the buyer. But the parties can make changes in the 
terms of contract, when they think so.  
Email on November 13 
The communication between Eddo Products Co and Vestley Co on 13 November 
through email says that Eddo Products Co accepted the quotation for the supply of canned 
fruit of offer of Vestley Co. After this, buyer also mailed a further message to seller that the 
company has no issue and seller will have to follow the terms defined in earlier mail for the 
supply of the order.

ASSIGNMENT 1Weight: 25%Word length maximum: 2500 wordsIf the word limit is exceeded marks may be deducted where the excess is caused by irrelevant materialQUESTION 1 (13 marks)The following...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment