Word limit:

The word limit is 1800 words for the whole assignment; 600 words for Part I and 1,200 words for Part II. The word limit does not include referencing. There is no 10% margin of error on the word limit and you may not use footnotes to get around the word limit (such as by placing extra text in the footnotes). Marks will be deducted if there are excess words.

Style and Format:

Your responses should be in full sentences and written in a formal, business-like tone.

Part I: Questions

1. Fully explain the essential elements for a valid simple contract.

2. Mick and Sean are former friends who purchased and developed land together, but have recently argued and fallen out. After lengthy negotiations over the fate of their latest land investment, Mick sent Sean a letter in which he offered to buy Sean's interest in the land for $100,000. The letter dated 23 January included the following sentence:

"This offer is open only for 7 days from the date of this letter."

On 29 January, Sean posted a letter accepting the offer contained in Mick's letter.

The following day, Sean had a change of mind and telephoned Mick, telling him that he was not accepting the offer and that Mick should ignore the letter that Sean had posted to him the day before. Mick received Sean's letter of 29 January on 1 February.

Mick seeks your advice as to whether there is an agreement between himself and Sean.

3. David's puppy runs off while he is walking it in a local park. David places an advertisement in the local newspaper offering a reward of $400 for the return of his lost puppy provided the puppy is in a "good condition."

Mary is a local parking inspector and finds the puppy with a badly cut paw curled up under a car. Mary loves animals and so she takes the puppy to a local vet where she is charged $200 for the dog's medical treatment.

Mary does not read newspapers so she does not see David's advertisement for the reward for the return of his puppy. However, Mary hears from one of her neighbours that a man called David has lost his puppy. Mary tries to find David. Meanwhile, Mary has spent five days feeding the puppy at a cost of $5 per day.

Mary discovers David's address and travels to David's home. She then sees a copy of the advertisement for the reward in the front garden of David's house. Mary returns the puppy to David. David thanks Mary and pays her $225 for her actual expenses, that is, the cost of feeding the puppy ($25) and the medical treatment ($200). David refuses to pay Mary the reward money stating that the puppy is not in good condition.

Advise Mary.

Part II: Problems and Letter to a lawyer

1. Alice owns a small wedding stationery business - she designs and prints wedding invitations. Her husband John is a large commercial printer, and because of the large volume he obtains his paper at a discounted rate. Thursday evening, after she had cooked John's favourite dinner, Alice asked John to supply all her paper needs at his cost price - a substantial discount for Alice. John replied "Certainly honey - anything you ask".

With a cheaper paper supply secured, Alice decides to expand into a variety of coloured inks. She rings Mary her ink supplier on Friday morning, and they discuss gold and silver ink. Aliceis concerned about the high price, and considers, that as a good customer, she should receive a discount. She offers to pay $50 a cartridge for the silver ink and $80 a cartridge for the gold ink. Mary is concerned this is too high a discount, and tells Alice she will need to think about it. Alice says, "Take a week to think - if you don't call me before next Friday with a different price, we've got a deal. I'll take ten of each."

In the meantime, Alice received a circular from Jane's Inks. Jane's Inks are offering an opening special - gold and silver ink cartridges for $40.00 each. Alice immediately rings Jane and orders 20 cartridges of each colour.

On the following Friday, as part of her regular ink delivery from Mary, Alice receives 10 gold and 10 silver cartridges. She rings Mary and tells her she doesn't want them as she has a better deal from Jane. Mary insists she takes them as they have a contract.

Alice then receives a call from Jane's Inks, advising that, due to overwhelming demand, they will not be able to fill her order, but offering her a new price of $90.00 per cartridge of gold and silver ink. Alice is furious and tells them they must supply her at the earlier price, as they have a contract.

Alice calls Mary back and tells her she will keep the cartridges. Mary tells her she can have them - for a price of $90.00 each.

She then calls John to organise a paper delivery. He quotes her normal commercial prices. Alice reminds him of their deal. He laughs, and says "That was dinner, this is business."

Advise Alice of her rights with respect to Mary, Jane's Inks and John.

2. Joanna's aunt recently died, and in her Will Joanna was left the house and its contents, which included valuable paintings and antique furniture.

Joanna and her husband, Peter, have been suffering financial difficulties, and Peter's building business has also been struggling financially. This is because most of his clients are friends and it has been hard to get them to pay for work done.

Joanna decides to keep the house but sell the contents at a public auction. Once word of this sale gets out, she is contacted by relatives who desire certain objects. Her second cousin, Marie, writes to her, stating that she had been promised the big guilt edged mirror in the main hallway by the aunt. As it seems the aunt had forgotten the promise, Marie would buy it from Joanna for the nominal sum of $50 (the mirror is an antique worth $5,000). Marie stated that she will assume the mirror is hers if she does not hear from Joanna within two weeks after the postmark on the letter. She also hints that outstanding payments due to her husband's business for renovations done to Marie's house might be significantly delayed if she does not get her way.

As Peter has told her that the business is on the brink of collapsing unless some payments are received soon, Joanna decides to sell the mirror to Marie for $50.

Advise Joanna fully on what common law grounds she may now use to attack the transaction with her second cousin, Marie.

(Do not assume an argument you make is correct; discuss all reasonable arguments)

Scenario for the letter:

On 15 January Peter brought his car to your garage to have certain mechanical repairs carried out. That evening thieves entered the garage and the car entertainment system, valued at $1200 which Peter had installed in his car was stolen. The thieves were able to get into the garage because you forgot to turn the alarm on when you left for the night. The next day, having completed the repairs, you used Peter's car to drive to your friend's house. While the car was parked outside the house someone (who has not been identified) drove into it causing $16,000 worth of damage.

Peter, whose family has owned a number of cars, had employed you regularly over the past five years for servicing and repair work. When Peter brought his car to the garage on this occasion he entered, as he always had done on such occasions, an office on the wall of which was displayed a small notice stating "Customers are kindly invited to note that all vehicles are accepted only subject to the conditions on our receipt forms." On each previous occasion when he collected the car and paid for the work, Peter had been handed a document headed "Receipt". On it were Peter's name, a description of the car and the work carried out, a statement of the amount owing and an acknowledgment of payment of that amount. At the bottom of the receipt was printed:

"We regret that we cannot accept any responsibility for damage or loss caused to customers' vehicles by fire, vandalism or otherwise howsoever caused."

You have displayed the notice in the office and used the same receipt form during the past five years, but Peter says he has never read either of them.

You consider the applicable law and decide on whether you must offer compensation or can refuse to compensate Peter for the loss of the entertainment system and/or the damage to the car. You need to ‘run it past your lawyer' before responding to Peter's demands. You are requested to write a letter to a lawyer practising in a suitable area of law along the following lines:

• Introduce yourself;
• Explain the legally significant facts;
• Explain what it is you want to do and why you think you are entitled to act that way, within the scope of the law and
• Request the legal practitioner for advice about the legality of your plans and about any other legal concerns which you may have arising from these circumstances.