Cheat sheet - Summary Principles of Business Law PDF

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ACCC v Coles ‘baked today’ bread, which already prepared and partially baked by outside supplier. ACCC claimed misleading, successes, breach of s18 and s33 of ACL, penalty of $2.5 million. ACCC v TPG advertisement of unlimited data limit for $29 per mon, small part shown only available when with telephone service for $30 per mon. ACCC claimed misleading, successes due to it is ‘domain’ message, penalty. Alcatel Australia v Sarcella A leased building from S, S ordered inspection of fire safety resulting in insulation of stairwells, that cause fee to A. S with good faith, not breached, A to pay for repairs. Allcard v Skinner A gave property to religious order (poor), then A left the order. After 5yrs she wanted to get back. A waited too long, not under undue influence. Not recover her property. ANZ v ACEC ACEC was manufacturer, hired Helios as an agent of sales in Aus. ACEC had no bank account in Aus, H deposited money into own account with ANZ and then forwarded to ACEC. H’s company liquidated before all payments were made to ACEC, H had no express but implied authority, that to make the contract commercially workable. ANZ not liable for unpaid funds. Associated Newspapers v Bancks AN to pay B salary for artwork on front page, but finally on page 3. Condition, B terminating contract. Baldry v Marshall M asked B (seller) for information car and explained purpose of car required; M bought car, proved defective, M successfully refused car, even though bought under a trade name, bought with reference to purpose required. Balfour v Balfour wife remain in England and husband paid $30 per month, then divorced. Agreement between spouses, not bound. Baltic Shipping v Dillon Cruise, ship sank. Pleasure, damages for disappointment and distress. Barton v Armstrong B purchased shares 股份 from A, later B claimed A threatened life and safety of him and family. Duress, B also had business reasons for buying, since threats had contributed, contract void, vitiating 无效 circumstances. Bertram A & Co v Godfray G dealt with stock through mercantile agents B, instructed to Garcia v NAB G owned gold trading company, asked wife to secure loan from banksell stock when the market price reached 85cent or above, when stock reached 85 B did not sell immediately, expected price to rise, price dropped, G sued to recover loss, instruction was specific, therefore BA&Co liable for failure to follow . Bettini v Gye B sing for G , B sick and 4 days late to rehearsal, G wants to terminate. B breached a warranty, not a condition. BP Refinery v HSC BP developing oil refinery, H agreed to charge less than normal municipal rights, BP refinery restructured to BP Australia; H started charging full rates; H argued it was implied term that if BP refinery ceased to operate on the site the contract was terminated. No implied ad hoc (not needed to give business efficacy, not obvious, not fair, not inferable that both parties intended to include such terms); H to charge original rates. Brinkibon v Stahag B wished to purchase steel from S, acceptance took effect when telefax received by S in Vienna, contract made in Vienna. Buckenara v Hawthorn FC B under contract to not play for another team, H ordered injunction. Injunction allowed; wouldn’t force B to play for H as he could make a living elsewhere. Burger King v Hungry Jack's HJ franchise of BK, BK tried to forced HK to buy out own rights; refused HJ sub-franchises that HJ was required to open each year. BK breached due to no good faith. Butcher v LE LE produced a brochure detailing a property for sale, included in small print that information was provided by outside sources, not responsible for its truth or falsity, B purchased property, survey on brochure inaccurate. B attempted to recover deposit, unsuccessful, brochure has disclaimer, not likely to mislead anyone who had read it carefully. Carlill v CSB buy smoke ball then $100 reward. Intention to be legally bound; sufficient consideration; not advertisement; offer to anyone; acceptance of offer via conduct. Causer v Browne C took dress to dry cleaning; docket stated dry cleaner avoided liability, not drawn to his attention; dress stained. Docket did not appear to contain contractual terms, C not bound, successfully claimed damages. CBA v Amadio A secured overdraft from bank, asked parents would to provide mortgage, bank manager not explained to them. A’s company dissolved, parents were unaware of extent of debt. Unconscionable conduct by bank, void. Cehave v Bremer B sold C citrus pellets, to be in ‘good condition’, were not in good condition, C could not reject goods, due to still useable, did not substantially deprive C of benefits. Non-serious breach of innominate term, damages, no termination of contract. Codelfa Construction v SRA C building tunnel for SRA, noise, residents gave injunction to prevent 24hr work, C had to work slowly and pay more. No implied term, contract discharged by frustration. Cohen v Cohen husband paid $100 per year to wife for dress allowance, then divorced. Agreement between spouses, not bound. Concrete Constructions v Nelson CC constructing a building, builder N instructed by a foreman of the company about how to secure a shaft, shaft fell N injured. N not able to claim damages since conduct did not ‘in trade or commerce’, no misleading. Connor v Stainton S to erect fence for C with posts 12ft apart, posts were not 12ft apart, S offered to add in droppers. Not substantial performance (sth less), C refused to pay, successful. Coulls v Bagot B digging up stone from C’s residency and paying royalties, death of C, royalties not payable to his wife. Third party not party to contract, no consideration, royalties payable to C’s beneficiaries. Donoghue v Stevenson snail in ginger beer, caused shock and gastro, D sued S for negligence, D owed S duty of care as customer foreseeable as consumer of product. Dougan v Ley D sold taxi and license to L, changed his mind. Specific performance, due to license not readily available on market, damages not adequate remedy to return L to state before breach occurred. Ermogenous v COG SA C hired E and refuse to pay. Agreement with religious minister, between friends, bound. Esso Petroleum v CCE E produces free ‘coins’ for petrol, C asked for tax. Commercial agreement therefore bound; coins subject to purchase tax.

Expo Aluminium v Pateman P to provide aluminum windows for expo, informally explained windows would be exposed to winds, therefore term implied by legislation that product would suit buyer’s purpose, windows leaked; breach of s19. Finch Motors v Quinn Q buys car to tow boat, sold as suitable for that purpose, took for test drive, purchased car, later discovered defective radiator. Q successfully rejected car, hidden defect, reasonable delay, usage required to discover defect. Fitzgerald v Leonhardt F employed L to drill holes in land, F failed to get license for drilling before L started, seven holes drilled, F claimed work was illegal due to lack of permit, L claimed payment was enforceable, Water Act only penalized such conduct but did not prohibit it, contract not illegal; enforceable. Freeman & Lockyer v BPP K and others created company BPP, no-one was appointed managing director, K employed F&L to do work for the company, work completed, dispute arose as whether K had the necessary authority to hire F&L. K had no actual authority to bind the company, but apparent authority (third party thought K had authority, representation made by company, third party relied on this representation, company had the power to enter into such a transaction) Garcia v NAB G wanted borrow money from NAB, G asked his wife to use her house as mortgage, told no risk. G’s business failed, NAB to enforce mortgage. Void, as no explain to wife, unconscionable dealing. Garry Rogers Motors v Subaru GRM as authorized dealer of S, dealers revised, GRM showed unwillingness to comply with new requirements, S wants to terminate and not change mind. GRM sued for unconscionable conduct, unsuccessful. Although termination not into writing form, both parties were aware of the reasons. Government of Newfoundland v NR G hired NR to build railway, payment in terms of acreage of land per five miles section built, construction stopped after 7 sections. Divisible contract, G to pay 7 sections. Great Peace Shipping Ltd v TS TS hired to stop a ship from sinking, in turn hired GPS to help recover the ship thinking it was the closest ship, discovered it was not. contract not voidable, mistake not about fundamental difference (not conditional), GPS ship could do required task, no vitiating circumstances. Hadley v Baxendale H’s mill broke, hired B to transport mill to manufacturer, B said would deliver next day, but took 7 days. No damages, due to B not told mill would stand idle, loss not contemplated. Handbury v Nolan cow auctioned as pregnant, but actually infertile. Bound; express term, not an opinion. Hawkins v Clayton C made solicitor of a will, H main beneficiary of the will, C waited six years before notifying H of his benefits, by his time the house had fallen into ruin. H to claim economic damages for negligence, successful, C owed H a duty of care. Henthorn v Fraser F offered to sell houses; H accepted by post; F tried to withdraw; unsuccessful; letter posted before attempt to withdraw. Hochster v De la Tour H hired DLT as courier, three weeks before trip informed DLT he no longer required one. Anticipatory breach, DLT entitled to damages. Hoenig v Isaacs H painted I’s apartment for $750, work badly done, cost $55 to fix, I only paid $400. substantial performance by H, only a breach of warranty, I should paid $750 – 55, damages only. Hole v Hocking passenger in car suffered injuries due to another driver’s negligence, hemorrhage. doctor’s found hemorrhage would have happened anyway, driver only liable for damages for period in which hemorrhage was accelerated or worsened, liable for the amount of harm caused by negligent actions. Holland v Wiltshire W sold land to H, pay due on particular date, later agreed to extend deadline, H couldn’t pay and wanted to back out. H breach of condition, W terminated contract and claimed damages from H, late performance. Imbree v McNeilly I allowed N, 16yr old learner driver to drive car, car overturned, I left paralyzed, I sued for negligence, found that N owed I a duty of care, not referenced to his skill as learner driver but to the objective standard of all road users, N liable. However, I did not warm N about sudden changes of direction, contributory negligence of I, I responsible for 30% of harm. JC Williamson v Lukey JC owned theatre, leased confectionary shop to L on grounds he would be only one for 3 years, allowed someone else. L sued JC asking for specific performance, unsuccess, due to required constant supervision. Johnson v Buttress B elderly man, relied on J for all of his affairs, expressed he wanted to make the will in her favour, she took him to her solicitor. Undue influence, contract void, he had not exercised free will when using her lawyers. Koompahtoo LC v Sanpine Joint development of land, 50% interest each, K provided land, S to provide reports and accounts, failed. K terminate contract; substantial breach of an innominate term,88 went to root of business relationship. Koufos v Czarnikow K shipping sugar to Iraq for C, normally took 20 days, but took 30 days, price of sugar dropped in this time. C able to claim damages from K to compensation for loss in price; direct loss. L'Estrange v Graucob G sells cigarette vending machine to E, E signs express agreement, but machine not satisfactory. E still bound, machine did not have to be reasonably fit for purpose (usually implied). Leaf v International Galleries L purchased painting from IG, both believed it was by a famous artist, later found out this wasn’t true. Mutual mistake, but contract held, the agreement was not objectively conditional on the belief that the artwork was by the famous artist, L purchased because of content. Lindner v Murdock's Garage L contracted to work for M, contained terms that disallowed L to work in certain areas for 1 yr. M wished to enforce contract, unsuccessful, restraint clauses unreasonable, illegal, contrary to public policy. Lintrose Nominees v King LN appointed John as agent to sell tile units, K appointed John for advice on investments, John advised K to buy LN’s tiles, on discovering the facts K wished to avoid the contract. Successful, John had breached duty to avoid an undisclosed conflict of interest, agent cannot conscientiously services two principals. Lumley v Wagner W contracted to sing for L, could not perform for anyone else, breached, W wished to enforce specific performance of singing, unsuccessful. Courts could not be sure it would be done out of goodwill without supervision, W wanted injunction to stop her singing elsewhere, successful, which not forcing W to sing for L as she could make money elsewhere if needed. Maritime National v Ocean Trawlers M hired fishing trawler from O, M only given 3 fishing licenses by gvnmnt, gave licenses to other boats, tried to return trawler. No frustration, it was M’s own decision to allocate liences.

Masters v Cameron M selling land, conditional on creation of formal contract; not bound until formal contract; sale not enforceable. McRae v Commonwealth Disposals C sale of oil tanker said to be wrecked on reef, R bought it spent money searching for it, didn’t exist. R claimed damages for cost of tanker and wasted expenses, consequential loss. McWilliam's Wines v McDonalds W sold caskets of wine under name ‘Big Mac’, M claimed misleading, unsuccessful, not a connection. Merritt v Merritt spouses shared house, separated, agreement put house in wife’s name if she paid off loan, put in writing, husband later refused. Bound; after marriage had broken down. Moorhead v Brennan B published M’s book, B wrote introduction to book, M offered another publication, but B refused to publish it without this introduction. Term implied ad hoc that B would not stop M from publishing elsewhere; M terminates contract with B. Musumeci v Winadell M leased a shop in W’s mall; W introduced similar shop; W promised lower rent to M, but later refused, promise legally binding, practical benefit for W, sufficient consideration. North Ocean Shipping v Hyundai H to build ship for NOS, America dollar dropped 10%, H refused to build it unless NOS paid 10% more, NOS needed ship quickly due to another contract, agreed. Duress, H made unlawful threats of economic harm, contract void. However, NOS not within reasonably time, could not recover the additional 10% they paid. Oscar Chess v Williams W’s mother owner car, believed to be 1948 model, papers showed 1939 model, O sued for breach of contract, unsuccessful. Representation, not promise, not an essential term. Partridge v Crittenden P advertised wild birds, sued by RSPCA. Advertisement not an offer. Perre v Apand P grew potatoes near outbreak of disease, could not sell and suffered economic loss, sued A for supplying seeds to farm with outbreak, A owed S a duty of care, P was identifiable as a person and dependent on A acting, could be foreseen potential harm. Perri v CI P want to buy property from CI, CI ask him to sell his property. P failed within reasonable time. P Bound, breach, no cooperation, CI terminated contract. Phillips v Ellinson Brothers E employed P to work 160 hours each month, P informally reduced to 60 hours. Indivisible contract, P not completed all terms of the contract, no payment to P. Placer Dvlpmnt vs Cth Cth to pay subsidy to importers, amount at own discretion. Illusory promise, not enforceable; nothing of substance promised. Price v Easton Builder owed P money. E promised to pay P if builder provided services. B provided services, but E did not pay; P attempted to enforce promise; P not entitled, not a party to the contract. Radford v Froberville R owned adjacent blocks of land, sold one to F, F to build expensive wall on barrier, F did not and sold block to third party. R entitled to claim damages for the cost of the wall, not just damages to the difference in cost to his land. Raffles v Wichelhaus W buying cotton balls from R, R instructed to place balls on ship called Peerless, later discovered two ships called Peerless due at different times. Mutual mistake, objectively judged no agreement reached on ship to be used, contract void in common law. Rogers v Whitaker W blind in one eye, R performed surgery without detailing risks involved, surgery caused blindness in other eye. R had duty of care to explain risks, negligence of doctor to patient, high standard of duties, W was relying on R’s specialized skill and knowledge. Secured Income v St Martin’s SI sold M a property, price based on how many tenants, SI attempted to lease, M rejected offer. M cooperated (implied term), no breach. Shaddock v PCC S developing land, S’s solicitor asked PCC if road would enter land, PCC said no, sent certificate of guarantee, S purchased land, road was built. S able to sue for negligence, although conversation informal certificate not, council should’ve known S was relying on guarantee, owed S a duty of care. Steele v Tardiani T cut firewood for S, cut some wrong diameter. Partial performance; S accepted work, to pay for value of work done. Stilk v Myrick captain promised extra pay if crew worked harder, shipowner refuse to pay. Crew give nothing to exchange, past consideration not legally enforceable. Tabcorp v Bowen B leased building to T on basis he would not alter building, T built foyer without consent. B entitled to claim damages to restore foyer to its actual position, not just damages to put him in the same financial position. Taylor v Johnson T sold land for $15,000 for 10 acres, actually for per acre. unilateral mistake, contract void, serious mistake of fundamental term and J was aware, unconscionable dealing, vitiating circumstances. Thomas v Thomas wife paying $1 to reside in deceased husbands house; consideration sufficient. Van den Esschert v Chappell C buying V’s house, asking if free from white ants, V told yes, terms not included in written contract, house was infested. Partly written and oral, parol evidence rule does not exclude oral terms of obvious importance. Varley v Whipp V sells W reaping machine, claims 1yr old and in good quality, but delivered old and broken. W entitled to refuse, product sold by description, V breached implied condition, W never became owner of goods, non-performance. Waverly Council v Ferreira child fell and died in park playground, father suffered depression and CSD. WC owed father a duty of care, harm of playground was foreseeable and risk significant, negligence, father’s mental health caused by circumstances naturally flowing from breach. Woolcock v CDG CDG designed foundations for warehouse, did not test soil, W bought property, found that foundations were unstable, costly to fix. W attempted to sue CDG for negligence, unsuccessful, CDG did not owe a duty of care, W could have taken steps to prevent the harm, such as inspecting the foundations before purchase. Yorke v Lucas Y to buy record store, L as agent and passed on wrong information about daily turnover of record store, Y purchased store and suffered loss. Both L (agent) and record store (principle) were liable, misleading conduct regardless of honest intentions.

legislation as a source of law Legislation: laws that enacted by legislature. Legislatures: Cth (exclusive power) and State (shared power), Territory. Bill: (1) considered by cabinet, draft by parliamentary counsel. (2) 解释 explanatory memorandum by ps to summary & explain. (3) 审查 review by minster, party committees & department. Financial bill: House of Origin: lower House of bicameral parliament Procedure in legislature: (1) 1st reading (house of origin to h of review, vote, copy to all). (2) 2 nd reading, speech of purpose (by minister, debate, vote), if more examination, ‘committee of whole’. (3) 3 rd reading (vote, no debate). (4) repeat reading, if fail, back to origin. Royal assent: to Queen’s representative. Commencement: Publication (government Gazette), operation as law, 28 days after Royal assent. Cite: name, year enacted, legislature. Interpreting legislation: (1) ‘literal approach’: ordinary meaning. If fail, ‘golden rule’ to choose meaning. (2) ‘purpose’ appro...