Assessment 3: Case study - problem-solving exercise

Format

Problem scenario, students are required to identify the relevant issues, state the applicable principles of law, supported by authority, and apply the law to the given facts to arrive at a conclusion.

Worth

10% of the final mark

Assignment Submission

Submission is on-line via Stream in either PDF or MS Word format.

Scenario

Galmod is a lecturer in business law at the Edoras University. During a lecture on the need for form in contracts Galmod says "There is no need for any contract to be in writing for it to be enforceable in New Zealand law". Grima, a student in the class, asks whether this applies to contracts of guarantee and Galmod replies that it does. This not correct. Grima is a part time student who runs his own business. In reliance on Galmod's statement, Grima accepts an oral guarantee of payment from the mother of one of his customers. The customer fails to pay the debt and Grima discovers that the mother's guarantee is unenforceable since it is not in writing as required under s27 Property Law Act 2007. As a result of this Grima has lost $10,000.

Required:

Advise Grima whether he could succeed in an action in tort against:

1.(a)Galmod

2.(b)The Edoras University.

Reading

The textbook: Chapter 11

Lecture Notes Week 4