1 TLAW 607 BUSINESS LAW ASSIGNMENT QUESTION SEMESTR 1, 2020: CONTRACT LAW (ESSENTIAL ELEMENTS) Total Marks: 30 Due Date: (Week 8) Monday 18 May 2020 by 5.00 pm [Turnitat Moodle] Word Limit: Minimum 2700 words - Maximum 3,000 words [includes footnotes and bibliography] QUESTION [30 marks] Shrestha Tailor is a budding fashion designer in Sydney whose aim is to design her own clothes and sell them through a retail outlet owned by her. She decided to look for suitable premises from which to sell her clothing designer goods. However, since she knew she would not be able to finance this entire business, she asked her aunt for help to start her own business. Shrestha's aunt, Mrs Moneypenny, owned many properties in Harris Park (Sydney). She agreed to lease one of her shops to Shrestha at half the rental she would normally charge. Shrestha inspected the premises and told her aunt that she would like to make some alterations to the layout so as to give the clothing shop' a smartdekko' appearance. Shrestha told her aunt that she wanted to start on the renovations immediately and would speak to the local Council in Parramatta to get the necessary permits. Shrestha also agreed that she would pay for these alterations which, after quotes had been given, were calculated at $65,000. Shrestha told her aunt however, that she did not want to start on the renovation project unless her aunt was certain that the property was for rent at the amount agreed. Mrs Moneypenny said she would let Shrestha know in the next few days if she changed her mind about renting the building. Shrestha also said that the opening of the shop on the date agreed to in the proposed lease would help her to market her clothing designs from which she expected to receive a healthy financial return. It was estimated that the renovations to the shop would take six months, by which time Shrestha would have designed and created clothes in time for the new fashion season. A week after Shrestha spoke with her aunt, she started on the renovation project, having heard nothing from her aunt. After several weeks after the renovation work began, Shrestha noticed her aunt peeping into the window of the building in which the renovations were in progress. Before the lease to rent the building was signed and just as the renovation work was almost complete, Mrs Moneypenny advised Shrestha that she, as the potential landlord, no longer wished to continue with the arrangement because she received a higher rental offer from Mr Rich. Shrestha was very disappointed and wished that she had a signed lease. Her best 2 friend, Pinky, who is studying law but who has missed many classes told her that there is nothing Shrestha can do. Besides, Pinky also told Shrestha that the law will not allow her to sue her close relative. Pinky advised Shrestha to go to the temple and pray for good luck to try and get $65,000 back. Advise Shrestha Tailor as to her legal rights with reference to relevant principles of contract law. Give reasons for your answer based on contract law and relevant precedents. End of Question. IMPORTANT - Submission Procedure: 1. Assignment CoverSheet must be submitted with student signature and with word count 2. Plus Copy of assignment to be lodged at 3. Late submission will attract penalty (mark deduction of 5 % for each day late) Most Important: is a serious academic offence and can result in failure of this course. Students are expected to submit answers based on individual effort (this is not a group project). 4. No other method of submission is allowed. NOTE: Email attachments sent to lecturer OR papers sent by post will NOT be accepted. Requirements for a pass/good mark: 1. A legal analysis of the question with reference to relevant legal principles (case law). 2. Students are expected, as a minimum requirement, to reference the relevant chapters in the prescribed textbook and to draw supporting information from there in support of the answer. 3. You are generally advised not to use the internet for resource materials, especially if you are unfamiliar with the topic (as it may be unnecessary and you run the real risk of drawing on irrelevant information or legal information from other countries that are irrelevant to Australian law). Your prescribed textbook, and the references therein, is more than adequate to answer the question. 4. With those cautionary remarks in mind, only use internet sources that are relevant, accurate and reliable - remember, Wikipedia is not a reliable/credible source of academic information and is not to be trusted. 5. Students are expected to footnote references to case law 1 and to provide a bibliography of books2 and journal articles3 consulted. 6. Marks will be deducted if the answer does not meet the minimum word count - a word count must be indicated on the cover sheet. 1 Carlill v Carbolic Smoke Ball Co [1892] EWCA 1 (hereinafter Carbolic case) discussed in Latimer P, Australian Business Law (35th ed, Oxford, 2016) p 304. 2 Latimer P, Australian Business Law (35th ed, Oxford, 2016). 3 Campbell J, 'Waltons v Maher: History, Unconscientiousness and Remedy - the "minimum equity" ' (2013) 7 Journal of Equity 171 at 175. 3 7. Use of margin of 1.5 and font of 12 (Times New Roman] - with answers on single side of each page. 8. A good answer will do the following (adopt the following structure) with respect to the problem-type question: (a) Identify the material (relevant) facts - and NOT simply repeat the question; (b) Identify the legal issue (or issues); (c) Identify the relevant case law; (d) Apply the legal principles and case law to the given facts; (e) Offer reasons for your conclusion (must be supported by legal authority) - a simple Yes or No answer with personal views is inadequate); (f) Be proof-read to eliminate spelling and grammatical errors; (g) Be referenced, with a bibliography; (h) Meet the minimum word length requirement; (i) Not simply copy/reproduce the textbook (answer must show own understanding); and (j). (k) Late submission - it is TOP policy that assignments cannot be submitted late without prior approval of the unit coordinator and only in extenuating circumstances supported by evidence. Assignments submitted late without prior approval will not be graded.