Business law ILAC format | University of Western Australia

Introduction

Law is the concept that provided an authorized way to person to resolve the issues. The Australian government has developed several laws from early child care to contractual law in order to m maintain a decorum in the country. The assignment is based on business law which helps to identify the methodic way to solve the business sources of the country. The case study portrays the breaching of contract after promising someone. It seems that the assignment has followed the ILAC format for the development of the study. Issue, Law, Application, and Conclusion with advice these are four parts of this assignment.                             

Issues

The case portrays that Shrestha Tailor is a Fashion designer in Sydney who wants to open her own outlet to enlarge the business. She was searching for someplace for her own designing shop however, she doesn’t have that much money to open it(1). Therefore, her aunt Moneypenny has a lot of property that’s why Shrestha seeks help from her and manages her to provide her one of the shops in the lease. At this time Shrestha has made a mistake which has created a huge issue of contract breaching in this case (2) During the contract, Mrs. Moneypenny and Shrestha have fixed this deal with verbal communication. Therefore, it is seen that her aunt has created issues about the contract(3)

Based on the findings of the case study it is found that Shrestha has visited the premises before accepting the deal and then she has decided to do some change or interior in the shop for the smart appearance of the shop. It seems that before planning all of these things Shrestha should have judged the deal and the intentions of her aunt then she must not face this kind of breaching issue(4). It seems that after looking at the shop Shrestha has decided to start the renovation as soon as possible and after getting permission from the local authority she was agreed to Mrs. Moneypenny to provide $65,000 as she was using the property changing its decoration. It is seen that when almost renovation has been done her aunt replaced her and provide the shop to Mr. Rich.

From this perspective, it can be stated that the intentions of Mrs. Money penny were not good that’s she was peeing from her window and noticing all the process of renovation of the shop and she finds out that almost the renovation process has been completed then she has found a new customer for her shop and tried to earn more money by giving a well decorate and interior shop to Mr. Rich. It can be stated that this kind of issue has created due to a lack of communication and legal authorization within Shrestha and her aunt’s deal(5)

During studying the case it is found that Mrs. Moneypenny has told Shrestha in case she changes her mind she will let her know. It is found that all the communication or deals have been done verbally; therefore, there must not be any written document that can prove that Mrs. Moneypenny is a cunning, diplomatic, and greedy woman who just wants to develop her property so that she can lease someone else in high range. The major profit of Mrs. (6). Moneypenny is that for this purpose she doesn’t have to invest a single penny moreover, she will get $65,000 from Shrestha. 

In case Shrestha was an intelligent person she must catch the intentions of her Aunt. From this statement, it is found that Mrs. Moneypenny was not sure about the deal after having a verbal contract with Shrestha.  Therefore, Shrestha must wait for some time or should give some timer to her aunt to think about this deal after that she should start the renovation work. However, before this matter, Shrestha has started the renovation work and after one week of starting it she has just informed her aunt and as a cunning woman, Mrs. Moneypenny has planned something else.

On the other hand, the lawyer friend of Shrestha who doesn’t even know that in case anyone including parents or husbands also if does any kind of wrong deeds then the victim can sue them or file a case on them. As Pinkey has missed plenty of classes of law therefore, it is created an issue when Shrestha communicate and asked for a suggestion from her. This kind of people who don’t have that much knowledge about laws and legislations they totally provide wrong advice and demotivate people. Therefore, the issues have been arising that Shrestha is totally confused and stuck in a situation where Mrs. Moneypenny is her aunt and on the other hand she has lost the money that she has saved for his outlet(7). The major focus of the assignment is to provide proper laws and lawyers so that she can understand that in case of unfair and illegal deeds she can sue anyone even her parents also.  

Law

The major issue of the case is breaching of Verbal Contract which is legal in Australia. The case study portrays that Shrestha doesn’t have a single idea about the development of the acts in Australia. Moreover, her friend Pinky who is just a lawyer by the name she has stated that she cannot sue anyone who is her close relative, therefore, Shrestha is so confused and diverted from the main goal. In this part, Shreshtha will get to know that Verbal communication is legalized in Australia. Therefore, in case someone breaks the contract then the victim can file a case against that person(8). Therefore, there are some of the laws and methods that will help to provide that according to Australian law the thing which Mrs. Moneypenny has done is an offense and illegal.

Based on the findings it is found that the Contract Law of Australia portrays that when a contract took place between two people both should know that it’s their responsibility to fulfill the contract. In case of any uncertain situation arises during the contract completion time that both have to communicate and solve it with the help of legal terms(9). Australian Contract Law section 2 speaks about freedom of contract and proportionate liability of two parties while making a contract. Through this law, a person can file a case against any kind of breaching in contract, unfair statutory, interruption in the convinced contract. Moreover, it is seen that in case both people have fixed a deal through verbal communication then it also considered as a legal deal, however, the victim has to provide evidence about the deal it can an eye witness also.

In most cases, it is seen that only written deals took place in the court therefore, the government of Australia has faced more than 20,000 cases within 2015 to 2017 therefore; they have decided to legalize the verbal communication deals in order to balance the business environment. Based on this system the victim who has faced contractual breaching can take immediate action in order to solve the contract issues(10). The government of Australia has implemented this act in order to understand the agreement and communication of two parties. The act helps to protect the rights of the people and both the parties are bound to fulfill the deal according to the contract.

In the case of verbal communication, the Contract Law, Independent Contractors Act 2006, and Frustrated Contracts Act 1978 all these laws are applicable. However, for the development in the case, Shrestha has to understand there are some elements that should be maintained during a verbal contract then only can she file a case against her aunty within profound evidence and witness(11). The elements are Offer and Acceptance that portray during the verbal communication both the parties should have agreed to a point also must accept all the offers and demands of each other. Consideration portrays that both of the contract partners have to understand the motive behind this deal. In the case of verbal communication, both parties have to understand why they are receiving this agreement and the money and services of both parties should be discussed clearly.

On the other hand, understanding the Intentions to get into the legal relations has to understand by both parties. It seems that without any profit no one will engage in a deal therefore, both the partners have to understand why they want to deal in a commercial and domestic way through the Verbal Contract agreement(12) The next element is Certainty that shows the individual party has to recheck the background of each other so that they can understand their verbal contractual partner can afford their demand and sufficiently fulfill it based on the requirements. At last, Capacity is the major element that portrays both the parties’ need to analyze the capacity in order to maintain the business deal. Any kind of mental disability or intoxication can change the mind of parties therefore; addressing their mental state through communication is the major factor in this process.

In the case of Shrestha and Mrs. Moneypenny Independent Contractors Act, 2006 will also be applicable. The law conveys that in case any one of the contractors doesn’t maintain any kind of legal obligations then another one can take action(13). On the other hand, the law portrays any kind of liability and rights of individual contractors is their basic rights no one can derive them from those factors. Through this act, two contractors can maintain verbal contracts in an independent way. The law provides the right to a person in case of any breaching, injustice, or unfair accumulation they can file a case against the other partner of the contract. 

The Frustrated Contracts Act, 1978 will also be approachable in this case as the actor portrays in case of dealing there must a party or client who will work hard for the deal because the project or deal is their need1{14}. The major perspective of the act is to show the importance of both parties in verbal communication. By the implementation of this act, the performing means this case Shreshtha has to develop the circumstances of the performance level so that everyone can get the chance to resolve the matter.

Application

According to the above-discussed laws and acts, it can be stated that the Australian government has faced a lot of issues in this segment{15}. Based on the findings it can be stated that there are some cases regarding the applicable laws in this case study which will help to understand that bin case Shrestha will file the case against Contractual breaching in the Australian court then what kind of results can she expect from the judge also these cases will help to find out the after outcomes of the cases that may clear the vision of Shrestha about the outcomes of her case of breaching.

In the case of The Pharmacy Guild of Australia vs. Nectar Nominees Pty Limited as Trustee for Nectar, No 2 (2019)”, found that the judge has applied Contract Law Section 2 Nectar Nominees has dealt with an Australian Pharmacy guide that they will pay him a handsome amount after joining their organization as a guide {16}. All the conversations were in a verbal mode; thereafter joining the organization has not paid that amount. In Shrestha case, her aunt also set a deal with her that she will prove her property in lease according to the verbal contract. Therefore, in case of this case in case, the judge will apply the act then her aunt will be punished for this offense also she has to get back all her invested money in addition with penalty amount.  

In 2018 there was a case that has registered against contractual breaching named “Regency (Shower screens & Wardrobes) Pty Ltd v Nadinic [2018] NSWSC 68” in this case the judge has also applied Contract Law Section 2 to provide justice to Regency Pty. according to Regency Andrew Nadinic is a is a commercial builder who has made a contract verbally with Regency to set the showers, wardrobes in his new building 9170. After the implementation of the products Andrew was unable to provide them their payment they have provided time to gather money however, now they are thinking that Andrew is not giving the money intentionally. In the case of Shrestha, it is clear that her aunt has done call the things intentionally moreover, there is no scope to blame Shrestha about this deal as she stays near, therefore, she knows everything about the renovation and without her permission, Shrestha would not be able e to touching her property. Moreover, the local council of the place is the most important evidence in the case as Shrestha has talked to the council before started this renovation work in his place.  

In a recent year case of Bryden Homes Pty Ltd v TasBuild Limited [2018] TASSC 27”, it is seen that there were 7 workers of  Bryden Homes which is a consultancy has filed a case against the TasBuild Ltd for not giving them the independent working environment. In this case for giving justice, the judge has applied the Independent Contractors Act,2006. According to the deal the organization has contracted with the workers that they will be getting salary in a per-day basis method, however, TasBuild has obligated this contract without having any kind of financial crisis in the organization. Therefore, in the case of Shrestha, the act will be a supportive method[18]. According to the contract after six months of renovation the place should be the right of Shrestha however, Mrs. Moneypenny has leased that place to Mr. Rich. After placing this act in the case Mr. Rich and Mrs. Moneypenny both will be punished as they know everything.

In the year 2015, the Australian court has faced a case name Gladio Pty Ltd v Buckworth [2015] NSWSC 922”, in this case, the judge has applied the Frustrated Contracts Act, 1978 in order to provide justice. The case portrays that both of the party has made a deal that the joint shares will be sold in the market as the organizations are facing financial issues[19]. In the time of verbal discussion, Buckworth was totally agreed with Gladio Pty Ltd; however, in the time of selling the shares Buckworthy back off from the plan and demanded their own share in the business which was totally unexpected. In the same way, Shrestha has never expected that her aunt will trick with her that’s she has set the deal verbally and her aunt has used that loophole during the breaching of the contract. It seems that through this jurisdiction Shrestha will return back her money also seeks the money that she has invested in her aunt’s property.    

 Conclusion

The case study of Shrestha has stated that Verbal communication is part of the development of the business. It is found that according to Australian Law when a person deals with the close ones they can choose a verbal contract process as they know that person very well and this verbal dealing has been legalized by the government as they have found a lot of cases for verbal communication contracts. From this case, it can be advised to Shrestha that she should use the written format of the lease as a relative should not trust her blindly.

On the other hand, in case she would have discussed the deal in an elaborative way and waited for the last decision of Mrs. Monetpenny then this thing might not have happened. It is her lack of observation as she has never expected that her aunt will do this kind of injustice and unethical things. Besides this, Shrestha should consult with some experienced lawyer, not with her inexperienced and student friend for legal advice. Therefore, this kind of demotivated people creates hopelessness and weakens the person. Shrestha must note that a person can file case not only against her close relatives but also against their parents in case they found anything injustice and unfair.    

Conclusion

From the development of the case of Shrestha and Mrs. Moneypenny, it is seen that contractual breaching is a legal offense. Therefore, both parties have the right to claim case in case of any injustice and unfair deeds. It is found from the assignment that the government of Australia has faced a lot of Verbal contractual issues that have impacted the business environment of Australia. Therefore, there are some of the acts that have taken place in this assignment which has helped a lot to resolve the basic factors of the assignment. The ILAC format helps to apply some more cases as a reference and portrays the formation of these laws in those cases. At last, it can be stated that contractual breaching is an offense that can destroy the business environment as well as a person. 

 

 

Bibliography

Andrews, N. (2016). Frustration and Termination by Notice. In Arbitration and Contract Law (pp. 273-278). Springer, Cham. Retrieved from:  https://link.springer.com/chapter/10.1007/978-3-319-27144-6_16

Bigwood, R., & Mullins, R. (2018). Teaching Contract Vitiation in Australia: New Challenges in Subject Design. Bond L. Rev.30, 185. Retrieved from: https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/bondlr30§ion=16

Buscombe, I. (2019). Insolvent Trading and Fraudulent Trading in Australia: Regulation and Context. The Journal of New Business Ideas & Trends17(1), 44-46.  Retrieved from: http://search.proquest.com/openview/7389969f56980db3b188497ff0f74c41/1?pq-origsite=gscholar&cbl=1456363

Cartwright, J. (2016). Contract law: An introduction to the English law of contract for the civil lawyer. Bloomsbury Publishing.   Retrieved from: https://books.google.com/books?hl=en&lr=&id=6oQyDAAAQBAJ&oi=fnd&pg=PT14&dq=contract+law+australia&ots=wQPkX_tSyu&sig=oViXmKzqTiJHHkzc-nCsmWax_hs

Chung, G. (2017). A comparative analysis of the frustration rule: possibility of reconciliation between Hong Kong-English ‘hands-off approach’and German ‘Interventionist Mechanism’. European Review of Private Law25(1), 109-142. Retrieved from:   https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3156096

Frankel, R. (2018). The Federal Arbitration Act and Independent Contractors. Cardozo L. Rev. De-Novo, 101. Retrieved from: https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/denovo2018§ion=7

jade.io  (2020), Bryden Homes Pty Ltd v TasBuild Limited [2018] TASSC 27. Retrieved from:  https://jade.io/article/585777?at.hl=Independent+Contractors+Act,2006

jade.io  (2020), Gladio Pty Ltd v Buckworth [2015] NSWSC 922.  Retrieved from:  https://jade.io/article/400368?at.hl=Frustrated+Contracts+Act,+1978

jade.io  (2020), Regency (Showerscreens & Wardrobes) Pty Ltd v Nadinic [2018] NSWSC 68Retrieved from:   https://jade.io/article/572550?at.hl=Contract+Law+

jade.io  (2020),The Pharmacy Guild of Australia v Nectaria Nominees Pty Limited as Trustee for Nectaria No 2 (2019). Retrieved from: https://jade.io/article/723097?at.hl=contract+laws

Krone, T., Smith, R. G., Cartwright, J., Hutchings, A., Tomison, A., & Napier, S. (2017). Online child sexual exploitation offenders: A study of Australian law enforcement data. Criminology Research Grants77. Retrieved from:   https://crg.aic.gov.au/reports/1617/58-1213-FinalReport.pdf

Meng, X. (2017). The Labor Contract Law, macro conditions, self?selection, and labor market outcomes for migrants in China. Asian Economic Policy Review12(1), 45-65. .  Retrieved from: https://onlinelibrary.wiley.com/doi/abs/10.1111/aepr.12157

Menger, P. M. (2017). Contingent high-skilled work and flexible labor markets. Creative workers and independent contractors cycling between employment and unemployment. Swiss Journal of Sociology43(2), 253-284. Retrieved from:  https://content.sciendo.com/view/journals/sjs/43/2/article-p253.xml

Pawlowski, M., & Brown, J. (2018). The termination of real property interests by frustration under English law. Nottingham LJ27, 46. Retrieved from:   https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3156096

Rinaldo, C. (2019). Beyond Consumer Law–Small Enterprises, Independent Contractors and other Professional Weak Parties. European Review of Contract Law15(2), 227-250. Retrieved from:  https://www.degruyter.com/view/j/ercl.2019.15.issue-2/ercl-2019-0012/ercl-2019-0012.xml

 

 

 

[1] Krone, T., Smith, R. G., Cartwright, J., Hutchings, A., Tomison, A., & Napier, S. (2017). Online child sexual exploitation offenders: A study of Australian law enforcement data. Criminology Research Grants, 77. Retrieved from:   https://crg.aic.gov.au/reports/1617/58-1213-FinalReport.pdf

[2] Cartwright, J. (2016). Contract law: An introduction to the English law of contract for the civil lawyer. Bloomsbury Publishing.   Retrieved from: https://books.google.com/books?hl=en&lr=&id=6oQyDAAAQBAJ&oi=fnd&pg=PT14&dq=contract+law+australia&ots=wQPkX_tSyu&sig=oViXmKzqTiJHHkzc-nCsmWax_hs

[3] Buscombe, I. (2019). Insolvent Trading and Fraudulent Trading in Australia: Regulation and Context. The Journal of New Business Ideas & Trends, 17(1), 44-46.  Retrieved from: http://search.proquest.com/openview/7389969f56980db3b188497ff0f74c41/1?pq-origsite=gscholar&cbl=1456363

[4] Bigwood, R., & Mullins, R. (2018). Teaching Contract Vitiation in Australia: New Challenges in Subject Design. Bond L. Rev., 30, 185. Retrieved from: https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/bondlr30§ion=16

 

 

[5] Meng, X. (2017). The Labor Contract Law, macro conditions, self?selection, and labor market outcomes for migrants in China. Asian Economic Policy Review, 12(1), 45-65. .  Retrieved from: https://onlinelibrary.wiley.com/doi/abs/10.1111/aepr.12157

[6] Frankel, R. (2018). The Federal Arbitration Act and Independent Contractors. Cardozo L. Rev. De-Novo, 101. Retrieved from: https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/denovo2018§ion=7

[7] Rinaldo, C. (2019). Beyond Consumer Law–Small Enterprises, Independent Contractors and other Professional Weak Parties. European Review of Contract Law15(2), 227-250. Retrieved from:  https://www.degruyter.com/view/j/ercl.2019.15.issue-2/ercl-2019-0012/ercl-2019-0012.xml

[8] Andrews, N. (2016). Frustration and Termination by Notice. In Arbitration and Contract Law (pp. 273-278). Springer, Cham. Retrieved from:  https://link.springer.com/chapter/10.1007/978-3-319-27144-6_16

[9] Pawlowski, M., & Brown, J. (2018). The termination of real property interests by frustration under English law. Nottingham LJ27, 46. Retrieved from:   https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3156096

[10] Chung, G. (2017). A comparative analysis of the frustration rule: possibility of reconciliation between Hong Kong-English ‘hands-off approach’and German ‘Interventionist Mechanism’. European Review of Private Law25(1), 109-142. Retrieved from:   https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3156096

 

[11] Andrews, N. (2016). Frustration and Termination by Notice. In Arbitration and Contract Law (pp. 273-278). Springer, Cham. Retrieved from:  https://link.springer.com/chapter/10.1007/978-3-319-27144-6_16

[12] Frankel, R. (2018). The Federal Arbitration Act and Independent Contractors. Cardozo L. Rev. De-Novo, 101. Retrieved from: https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/denovo2018§ion=7

 

[13] Meng, X. (2017). The Labor Contract Law, macro conditions, self?selection, and labor market outcomes for migrants in China. Asian Economic Policy Review12(1), 45-65. .  Retrieved from: https://onlinelibrary.wiley.com/doi/abs/10.1111/aepr.12157

[14] Buscombe, I. (2019). Insolvent Trading and Fraudulent Trading in Australia: Regulation and Context. The Journal of New Business Ideas & Trends17(1), 44-46.  Retrieved from: http://search.proquest.com/openview/7389969f56980db3b188497ff0f74c41/1?pq-origsite=gscholar&cbl=1456363

 

[15] Cartwright, J. (2016). Contract law: An introduction to the English law of contract for the civil lawyer. Bloomsbury Publishing.   Retrieved from: https://books.google.com/books?hl=en&lr=&id=6oQyDAAAQBAJ&oi=fnd&pg=PT14&dq=contract+law+australia&ots=wQPkX_tSyu&sig=oViXmKzqTiJHHkzc-nCsmWax_hs

[16] jade.io  (2020),The Pharmacy Guild of Australia v Nectaria Nominees Pty Limited as Trustee for Nectaria No 2 (2019). Retrieved from: https://jade.io/article/723097?at.hl=contract+laws

 

[17] jade.io  (2020), Regency (Showerscreens & Wardrobes) Pty Ltd v Nadinic [2018] NSWSC 68Retrieved from:   https://jade.io/article/572550?at.hl=Contract+Law+

 

[18] jade.io  (2020), Bryden Homes Pty Ltd v TasBuild Limited [2018] TASSC 27. Retrieved from:  https://jade.io/article/585777?at.hl=Independent+Contractors+Act,2006

[19] jade.io  (2020), Gladio Pty Ltd v Buckworth [2015] NSWSC 922.  Retrieved from:  https://jade.io/article/400368?at.hl=Frustrated+Contracts+Act,+1978

 

 

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