Contract Law In Australia Essay

2897 words - 12 pages

Part 1On 1 June the galley agreed to sell a Margaret Olley painting which would be collectable on 1 August to Client B in return for $100000. This is a commercial transaction therefore an intention to create legal intention is presumed. With the presence of offer, acceptance, consideration and intention to create legal intention, a contract was validly formed.Non-DeliveryIn July, the gallery told Client B it would sell the painting to Client C if Client B refuses to increase the buying price. Here repudiation occurred as the galleries intended to perform the contract in a manner substantially inconsistent with the original agreement. Accordingly, Client B had the right to elect to continue or terminate the contract immediately, and at the end Client B chose to do the former. On 1 August, Client B did not receive the painting as a result of the actual breach by the gallery. The issue here is whether the gallery owes any liability to Client B.It is an established common law principle that where a party sustains a loss by reason of breach of contract, he or she is to be placed in the same position as if the contracts had been performed. This means the law protects the plaintiff's expectation of receiving the defendant's performance. Generally this approach will be reflected by awarding damages for lost expectation, that is, the expectation damages, by the court.In fact Client B paid no money for the painting and no additional loss or damage was occasioned by the breach. In other words, Client B can prove no more than the gallery's breach. In this case the court may award Client B no substantial damages but only nominal damages, to indicate the 'infraction of legal right'.Sales of Goods Act 1923 (NSW)On the other hand, with the Sales of Goods Act 1923 (NSW), the innocent party however will be able to claim those non-quantifiable damage such as the one we have in this case. Introduction of the act effectively alleviates the harshness of the common law principles.Section 53 of the Sale of Good Act 1923 (NSW) provides a remedy for non-delivery where the seller fails to deliver the goods which is the case we have here. According to that act, the measure of the damages should be ascertained by the difference between the contract price and the market price at the time when they ought to have been delivered or if no time was fixed, at the time of the refusal to deliver. In question the delivery date as stated in contract is 1 August. The fact about the market price of the painting on 1 August is silent but we may take evidence of the market price earlier in July which is $200000. We then can expect the market price on 1 August, the delivery date, would be equal or slightly higher than $200000. The contract price was $100000. The damages for non-delivery is their difference and therefore about $100000.Part 2Causation and remotenessThe galley the plaintiff may put on an argument that, because of the failure of Art Supplies Ltd the defendant to deliver the...

Find Another Essay On Contract Law in Australia

State of Good Faith in English Contract Law

2900 words - 12 pages The law of contract in many legal systems requires that parties should act in good faith. English law refuses to impose such a general doctrine of good faith in the field of contract law. However, despite not recognizing the principle, English contract law is still influenced by notions of good faith. As Lord Bingham affirmed, the law has developed numerous piecemeal solutions in response to problems of unfairness. This essay will seek to

A comparative view of contract in civil law and common law

1720 words - 7 pages which was later adopted in the U.S, Australia and other British Commonwealth countries, that is based on precedent instead of statutory laws. Precedent is created by the judges in case of there is no authoritative statement of the law.In common law, the key elements of a legally binding contract are :Offer. The indication by one person to another of his willingness to enter into a contract, with him on certain terms and condition.Acceptance. The

The Division Of Law-making Powers In Australia

1266 words - 5 pages supreme law making power was to create the Senate in the Federal Parliament. The Senate is a States house with an equal number of representatives from each State, regardless of population, and it can easily veto (reject) any Bill proposed by the Commonwealth Parliament. This was important because even though it was the Commonwealth Parliament, the states could still have a major voice.In 1942 World War Two was a major issue in Australia. The

Common Law in Australia: The Tort Of Negligence

9095 words - 36 pages TORT - A Tort is a civil wrong that is outside of Contract Law and arises out of a recognition that a person is responsible for their acts and omissions when dealing with others. The term "Tort" refers to a number of different laws such as nuisance, trespass and assault. Torts action generally compensates the individual for personal loss where the loss was caused by another person. It is based on Common Law.NEGLIGENCE - Negligence is one of many

Administrative Law in Australia -- Notes on Natural Justice

7990 words - 32 pages that the party affected has a right to be heard. Cooper -no requirements that party be heard, common law will supply natural justice such that party can be heard NOT limited to cases where rights are affected, but extended to where interests or privileges are affected. The considerations in deciding this case included 3 issues 1) FAI regarded the renewal of license as right because they had a legitimate expectation. A person is

Breach of contract and specific performance: the law in India and England

5960 words - 24 pages guess what these two functions are. Contract law is conceptualised, codified and enforced primarily for two reasons: Ensuring that contracts are formed legally and in keeping with the principles of justice, equity and good conscience; and specifying remedies for an injured party if the other performs a breach of the contract.The subject under discussion.The subject of this paper is extremely broad - it is supposed to deal with breach of contract

Importance of the elements in the formation of a contract - BUS115 Business Law

1198 words - 5 pages without them, the contract cannot be enforced under law. In the real context of business, it is highly likely that different kind of issue may arise when the contract is implemented, which causes loss or damage to one party. That party can only sue the other when it is a valid contract. If the contract is invalid, once missing any of the essential elements required above, the injured party cannot bring the case to court. Thus, it is crucial to

Labour Law Contract and ADRs in China versus the USA and UK

652 words - 3 pages business, labour practices and laws that exist and roles that unions play within the society. In this paper briefly look at the current state of the Chinese labour market and the history and evolution of the Chinese labour movement. Secondly, we will look specifically at the Labor Contract Law (LCL) that China invoked in 2008 and compare these to the laws that exist in the developed nations of the United States and the United Kingdom. Lastly, we

How can the corporations law in australia be changed to prevent another HIH collapse?

3375 words - 14 pages cross boarder insolvency. In 1997 the United Nations Commission on Trade Law adopted the Model Law on Cross-Boarder Insolvency (UNCITRAL) covering both corporate and personal insolvencies. Australia, through CLERP has released a discussion paper exploring the adoption of the UNCITRAL.Auditor IndependenceOne of the major areas of concern is the question of auditor independence. In the case of HIH, two board members were ex-partners of Arthur

Suggestions on reform of the law of rape in South Australia

1602 words - 6 pages IntroductionThe law of rape in South Australia is governed by the common law and the Criminal Law Consolidation Act 1935 SA. Recently, there have been inquiries as to the low conviction rate for sexual assault offences (1.8 per cent of reported rape cases against adult women resulted in convictions in 2002), which might indicate the insufficiency of law in this area .There are many reasons for the low conviction rate. Among all, emphasis will be

Torts law Essay - Answering the questions are remedies available to people infected with AIDS in Australia

2418 words - 10 pages Director general of the Department of Health pursuant to the Health (Infectious Diseases) Regulations 2001 (Vic). On the basis of the facts of your case, I forward to you my advice and subsequent recommendations.DutyThere is no question as to whether a duty of care was owed to Michael in this case. As the professional relationship you have with Michael (of which this case is concerned with) is that of a doctor and patient. "The law imposes on a medical

Similar Essays

Common Law In Australia Essay

1090 words - 4 pages Common law is the law made by judges when deciding a certain case before the court. The reasoning the judge applies becomes a precedent, to be followed by other lower courts in future matters of similarity. This is the basis for the doctrine of precedent. A precedent is either a binding precedent, the reason for a decision of a higher court that must be followed by a court of lower status in the same hierarchy; or a persuasive precedent, meaning

Modern Law In Australia Essay

1952 words - 8 pages P, 2013). The law and legal system around the world has developed throughout history to the point that there are many different categories and sub categories of law. In modern day Australia, the legal system has been modelled after the English system. This is a combination of statute and common law. Australia adopted these laws from England upon colonisation, when Captain Phillip declared the land ‘terra nullius’ claiming it under England

Legal Issue In Contract Law Essay

2115 words - 8 pages explained to in details that would convince them. Analysis The following principles may be derived from past authority to assist in the resolution of the application of the Act to the contract in question here and its performance: 1. The first task of a court is to ascertain the meaning and application of the law which is said to give rise to the illegality affecting the contract. The law in question may be a rule of the common law but

Private Law And Civil Law: What Is A Contract In Australian Law?

2053 words - 9 pages . Furthermore Nathan was not fully guided by John about what is a contract and while briefing him about the contract. John knew that Nathan was unable to understand clearly what he was offering to him. In order to reach the conclusion and sort out the legal issues the knowing of Australian legal system is must. The legal system of Australia consists of Sources that are parliament and Judges which is subdivded into federal or state and common law or equity