Objectives: Answer the following questions with reference to the relevant common law and equity principles operating in Australia concerning contracts plus related and other transactions. Do not consider the effects of legislation potentially applicable other than that specificallyidentified. Students may make whatever additional factual and/or legal assumptions are necessary or convenient. And students must write about 2000 words, or about 500 words per 10 mark allocation.Assessment Task:Question 1 10 MarksMojo Beverage placed the following advertisement in a local newspaper on 25 January:‘Come one, come all! Fishermen and women of Lake Tranquil. We are offering to pay $100,000to any person who catches Lord Harry, a trout which we have tagged and released into thelake.’The following day was the Australia Day holiday. Lake Tranquil was crowded with peoplefishing both from the bank and from boats. At about lunch time, a rumour spread among thepeople on the bank that there had been an error in the advertisement: that the true amountshould have been $1,000 and that Mojo Beverage had announced that the prize would be thelower amount. The rumour was in fact true. Ben heard this rumour from the stranger fishingbeside him, minutes before catching Lord Harry. A Mojo Beverage representative was onhand to certify the catch before Lord Harry was released back into the lake, but did not sayanything about the amount of the prize.Ben is claiming that Mojo Beverage owes him $100,000.Advise Mojo Beverage, explaining applicable legal principles and citing relevant authorities.Question 2 15 Marks(a) Dorper Sheep Sellers Pty Ltd was negotiating the sale of dorper sheep flock to a firm calledLivestock Brokers, which intended to on-sell the flock. On 1 June Dorper Sheep Sellers sent aletter to Livestock Brokers, setting out the number of sheep flock for sale and the price perhead. It asked Livestock Brokers to reply within 14 days.Livestock Brokers sent a letter by reply dated 6 June, inquiring whether the sale could befinanced on the ‘usual terms’. Dorper Sheep Sellers did not reply.2On 14 December, at the opening of business, Livestock Brokers sent a fax stating: ‘We acceptyour offer of 1 June for the sale of sheep flock’. The same day Dorper Sheep Sellers faxedback, saying: ‘You’re too late. We’re just in the process of selling the flock to anotherpurchaser. Formalities will be completed by tomorrow’.Advise Livestock Brokers as to the rights and liabilities of the parties in the light of thecommercial interactions taken place between them.(b) Presume in (a) above Livestock Brokers sent the fax on 14 June but because of atransmission error Dorper Sheep Sellers did not receive it. Advise Livestock Brokers in thiscircumstances.Question 3 15 MarksStuart had a 5-year written lease of a shop in the Prince Mall. He entered the lease at $1000per week at the end of 2010 and ran a successful music business for about two-and-a-halfyears. In 2013 the business was affected by decreased sales in CDs as a result of the increasedability of people to access music through the internet.In December 2013 Stuart asked the lessor, Westphalia Marts Pty Ltd, for a reduced rental of$700 per week until the business improved. He told the lessor about his business problemsand plans to diversify and indicated that he might have to terminate the lease early.Westphalia Marts agreed to allow Stuart to pay the reduced rent and in January 2014 Stuartbegan to pay the new agreed rent of $700.In December 2014 Westphalia Marts decided to sell the Mall, including all the shops. Theywanted the income from the Mall to look healthy, and asked Stuart to pay the full amount of$1000 per week rental beginning in January 2015 and also demanded the shortfall of $300per week for each week of the year 2014.
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