Objectives Answer the following questions with reference to the relevant common law and equity principles operating in Australia concerning contracts plus related and other transactions. Do not consider the effects of legislation potentially applicable other than that specifically identified. Students may make whatever additional factual and/or legal assumptions are necessary or convenient. And students must write about 2000 words, or about 500 words per 10 mark allocation.

Question 2 15 Marks (a) Dorper Sheep Sellers Pty Ltd was negotiating the sale of dorper sheep flock to a firm called Livestock Brokers, which intended to on-sell the flock. On 1 June Dorper Sheep Sellers sent a letter to Livestock Brokers, setting out the number of sheep flock for sale and the price per head. It asked Livestock Brokers to reply within 14 days. Livestock Brokers sent a letter by reply dated 6 June, inquiring whether the sale could be financed on the 'usual terms'. Dorper Sheep Sellers did not reply. 2 On 14 December, at the opening of business, Livestock Brokers sent a fax stating: 'We accept your offer of 1 June for the sale of sheep flock'. The same day Dorper Sheep Sellers faxed back, saying: 'You're too late. We're just in the process of selling the flock to another purchaser. Formalities will be completed by tomorrow'. Advise Livestock Brokers as to the rights and liabilities of the parties in the light of the commercial interactions taken place between them. (b) Presume in (a) above Livestock Brokers sent the fax on 14 June but because of a transmission error Dorper Sheep Sellers did not receive it. Advise Livestock Brokers in this circumstances.