Business Law

Q.5.1 Explain when risk will NOT pass in a contract of sale.

The following may help with the answer to the question: Please do more research aswell, thank you!

Q.5.2 Zolani has recently entered into a lease agreement with ABC Properties Pty Ltd for student accommodation near to the local university he is enrolled at. Whilst studying one night, he notes that the landlord hosts regular parties at the leased premises that often go on until 3am on weekdays and weekends. Zolani is struggling to concentrate with all of the noise and the sleep deprivation is affecting his studies. Discuss what duty is being breached in relation to this lease agreement and what remedies, if any, are available to Zolani to remedy this.

The following may help with the answer to the question: Please do more research aswell, thank you!

Duties of the lessor:

1. The duty to deliver the leased object to the lessee
2. The duty to maintain the object of the lease in proper condition
3. The duty to ensure the lessees undisturbed use and enjoyment of the leased object.
4. The duty to warrant against eviction of the lessee
5. The duty to pay the rates and taxes for the leased property

The lessees remedies if the lessor fails to fulfil her/his duty:

1. Request specific performance
2. Refuse delivery
3. Repair the problem and charge the lessor
4. Cancel the lease
5. Claim damages
6. Claim a reduction in rent

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Duties of the lessee:

1. The lessees duty to pay the rent-on or before the agreed date otherwise the lessee will be in mora/default
2. To take care of leased property-the lessee may not use the property improperly or unreasonably
3. The duty to return the property in original state/undamaged on termination of the lease SUBJECT to normal wear and tear

The lessors remedies of the lessee:

1. Claim rental owing
2. Cancel the lease
3. Claim damages

The passing of risk principle By risk is meant the loss resulting from damage to or destruction of a thing sold. - The rule is that the risk of accidental damage (not caused by the negligence of the seller) passes to the buyer when the sale is perfecta. A sale is perfecta when there is agreement as to (1)the thing sold,(2) the price and (3) all suspensive conditions are complied with. When goods are sold by weight or number, the contract is only perfecta once the goods are weighed or counted and separated from the rest of the goods. When a sale is subject to a suspensive condition, risk does not pass until the condition is fulfilled. Risk therefore passes before delivery to the buyer and before payment of the price. The consequence of the rule is that, if the thing is destroyed or damaged before delivery through no fault of the seller, the buyer must still pay the full purchase price