Further investigations into the accident provide the following findings: the river was not safe to...

Question

Further investigations into the accident provide the following findings: the river was not safe to navigate due to the heavy rainfall. In fact, there had been a warning issued to all licensed tour operators that day. Unfortunately, John had failed to register and obtain a license as a tour operator; and the safety gear was considered to be of very poor quality and would not meet any Australian standards — John had bought them at a street market without seeking professional advice on what type of equipment he would need. Vanessa was seriously upset that John had thrown all common sense out of the window. She was even more upset by his refusal to cover her medical expenses. 'Don't be silly. Didn't you read what you signed?' he replied. Vanessa considers whether to sue John or maybe approach one of the current affair TV shows to run a program on irresponsible tour operators. When Vanessa threatens to do so, John's comment on this was rather blasé: 'Well, make my day — any publicity is good publicity. I could not afford TV exposure on prime time anyway.'
Question 1: Contract Formation (4 points) Is there a contract between • Li Wu and John; and • Vanessa and John? When was this contract made?
Question 2: Terms and Remedies for Contract Law under Common Law (8 points) Do you think that John is liable for damages for breach of any contractual terms? Please consider both express and implied terms of the contract.
Vanessa and Li Wu would like a refund of the price of the gorge scrambling adventure, they are seeking any damages to which they may be entitled to and want to know whether they are entitled to bathers and bottles of sunshine. John believes he is well covered against any claims because of the signed Certificate of Adrenaline Junkie.
Question 3: Statutory Guarantees (8 points) Do you think that John is liable for damages for breach of any statutory guarantees under Part 3-2-1 of the Australian Consumer Law?
The remedies Vanessa and Li Wu seek are the same as in question 2 and John believes he is well covered against any claims because of the signed Certificate of Adrenaline Junkie.
IMPORTANT INSTRUCTIONS
Please note that the discussion for all those questions is limited to contractual risks including the ones under the Australian Consumer Law.
You will have to answer ALL questions and ALL sub-questions. Make sure that you discuss any applicable legislative provisions and relevant case law. Please note that if the facts do not warrant a discussion of all the elements of a legal risk, only the relevant elements should be discussed.
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Robert · Accepted Answer

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Answer 1  
Contract formation  
Issue  
According to given scenario, first 
issue is to analyze whether there was 
any contract between Li Wu and 
John as well as Vanessa and John?  
If yes, when this contract was 
formed? Here the objective is to find 
contractual relationship and legality 
between parties involved in the case.  
Relevant law  
Key factors for creating a valid 
contract are as follow; 
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 Presence of agreement i.e. an 
offer and acceptance 
1
 
 Second is consideration i.e. 
the price in exchange of 
promise fulfillment 
2
 
 Intentions to create legal 
relationship 
3
 
                                                 
1
 Beatty, J., & Samuelson, S. (New York). 
Cengage Advantage Books: 
Essentials of Business Law. 2015: 
Cengage Learnin.
 
2
 Clarkson, K., Miller, R., & Cross, F. 
(2014). Business Law: Text and 
Cases. London: Cengage Learning. 
 
3
  
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Analysis  
John made a unilateral offer through 
his flyer advertisement to promote 
his business; Li Wu and Vanessa 
accepted the offer by making a 
booking through their website. There 
was consideration present in the 
agreement as Li and Vanessa paid $ 
80 to John in exchange of his 
service. At this stage, it was an 
agreement between both parties 
involved. Further, there was creation
Latimer, P. (2012). Australian 
Business Law 2012. Sydeny: 
CCH Australia Limited,.
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of legal relationship when Li and 
Vanessa filled and signed the form 
given by john, it include terms and 
condition of contract; with this there 
was formation of contract between 
parties.  
Conclusion  
There was a valid legal contract 
between Li Wu and John as well as 
Vanessa and John.  
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Answer 2  
Terms and remedies for 
contract law under common 
law  
Issue  
According to given case study, the 
two clients involved encountered 
loss and injury; however John had 
made them signed an agreement that 
clearly states john is not liable for 
any injury and they will not sue him. 
However, Australian consumer law 
aims to protect customers from any 
illegal and unethical dealings. This 
answer aims to evaluate whether 
John is labile for breach of any 
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contractual terms. Here analysis is 
conducted from perspective of all 
three parties involved. 
Relevant law  
The rights and obligation of parties 
involved in the contract are decided 
by the terms associated; it can be 
implicit or explicit terms.  
4
 
Express terms are the one which are 
explicitly mentioned by the parties in 
written or oral before concluding the 
                                                 
4
 Groves, M. (2014). Modern 
Administrative Law in 
Australia: Concepts and Context. 
Cambridge: Cambridge University 
Press.
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contract.

Further investigations into the accident provide the following findings: the river was not safe to navigate due to the heavy rainfall. In fact, there had been a warning issued to all licensed tour...

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