You must answer the two problem-type questions below, using the ILAC (Issues, Law, Application,
Conclusion) format, a worked example of which is in the Resources folder.
Please note that the word limit of 2 000 words is a total for both questions (ie, it is not 2 000 words for each
question). I would however expect that students should be able to answer both questions in far less than 2
000 words. Your bibliography is not included in the word limit.
**In this subject, assignments are marked on-line, using an adapted MS Word programme. You therefore
MUST submit your assignment in Word format, NOT as a PDF document. If you submit in PDF it will not be
able to be marked.**
***If you anticipate applying for an extension for this assignment, please read the rules on extensions in this
Subject Outline before doing so.***
Question 1 (10 marks)
Qantas Airlines Ltd signs a contract with Airbus Corporation Ltd for Airbus to build a new aeroplane. On average,
Qantas would make $ XXXXXXXXXXprofit per day from using such an aircraft.
The contract has 545 terms. Term 56 says that the plane must be able to travel XXXXXXXXXXkm at 800 km per hour. Term
455 says that the aircraft must have an in-flight video system capable of showing 36 channels of entertainment to
After the contract is signed, Airbus sends to Qantas a package containing a large number of documents, including
the contract itself and examples of the colour scheme that will be used. In the middle of these documents there is
also a new document headed ‘Limitation of Liability’, the key part of which states as follows:
The liability of Airbus Corporation Ltd for breach of contract is capped at $ XXXXXXXXXX.
When the plane is delivered, its engines are as required, but, due to confusion at the factory, the wrong software has
been loaded into the entertainment system, which has only 34 channels. It would take a week to re-configure the
software. Advise Qantas Airlines fully as to what its legal position is, citing relevant case law.
Question 2 (10 marks)
Frank runs a shop that sells appliances such as ovens, fridges and freezers. He is a sole trader – his business is
not incorporated. Gemma is employed by Frank as a salesperson. Among the second-hand appliances in the shop
is a dishwasher, priced at $ 350. One day Tom, is browsing in the store, sees the dishwasher, and says to Gemma
“That’s a great price – I will just go home to see if I have space for it”.
Gemma’s niece, Frances, is getting married next month. Gemma knows that Frances needs a dishwasher. Gemma
quickly phones Frances and says “Get to the store quickly – I think I can get my boss to agree to take $ 300 for a
fantastic dishwasher”. Gemma tells Frank that she doesn’t think that the dishwasher will ever sell for $ 350, but that
a customer might pay $ 300. Frank authorises Gemma to sell the dishwasher for $ 300. Frances comes in and
Gemma sells it to her at that price. Later, while Gemma is on her lunch break, Tom comes in to the store. When he
inquires about the dishwasher, Frank tells him that it was sold that morning for $ 300. Tom tells Frank that he would
gladly have paid $ 350 for it.
Another salesperson, Bob, has the job of selling large quantities of washing machines to commercial laundries. He
has frequently negotiated with Angela, who owns a chain of laundries, to sell her washing machines. Bob frequently
comes to work late and is sometimes drunk. One Friday afternoon, Frank says to Bob “You are fired with immediate
effect – clear out your desk and leave”. Frank then rushes off to a meeting across town without making sure that Bob
actually leaves the premises.
This assessment will allow you to demonstrate your ability to:
engage in legal research;
identify the legal issues arising out of novel factual situations, to analyse the applicablelaw and to differentiate
between which rules are applicable and which are not and then apply the law to the problem;
to explain and summarise the applicable law in such a way as to create a report for a client which states what
liabilities arise from novel factual situations