Contract tutorial 1 PDF

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UWA Law School Contract LAWS4103 Tutorial 1 - Introduction to Contract Law: Analysis of a standard form of contract prescribed by legislation Pre-reading: · Read the Residential Tenancies Act 1987 (WA) section 27A and section 27B. (Go to the State Law Publishers at https://www.slp.wa.gov.au/legislation/statutes.nsf and select Acts in Force and search for this Act to locate these sections.) · Go to https://www.commerce.wa.gov.au/publications/rent-agreement-form-1aa and read the information on this page and the Form 1AA Residential Tenancy Agreement. Residential Tenancies Act 1978 (s 27A & s 27B) 27A. Written residential tenancy agreement to be in prescribed form. A lessor must not enter into a written residential tenancy agreement except in the prescribed form. Penalty: a fine of $5 000. [Section 27A inserted: No. 60 of 2011 s. 22.] 27B. Information to be given to tenant by lessor. A lessor must give a copy of the information (if any) prescribed for the purposes of this section to each tenant — (a) in the case of a written residential tenancy agreement, at the time of entering into the agreement; or (b) in any other case, within 14 days after the tenant has taken possession of the residential premises. Penalty: a fine of $5 000. [Section 27B inserted: No. 60 of 2011 s. 22.] Rent agreement form Residential tenancy agreement form All written tenancy agreements must be done using the Residential tenancy agreement (Form 1AA) . Please note: At the start of your tenancy you must be given the following by the lessor or the property manager of the premises: · a copy of the relevant information statement (1AC OR 1AD) · a copy of your residential tenancy agreement · two copies of the property condition report (must be received within 7 days after you have entered into occupation of the premises) · receipt for any bond that you have paid · keys to your new home. The Information for tenant forms (1AC and 1AD) include safety information relating to pool/spa barriers and curtain/blind cords and chains. We encourage regular checks of pool barriers and blind and curtain cords or chains as part of the property inspection program.

Question 1 The purpose of this question is to introduce a standard form contract, and to discuss the content of a contract and how agreements are regulated by legislation and general law principles. The amount of regulation that applies to a contract varies between a greater or lesser amount depending on the nature of the contract. Note that we will not be studying residential tenancies or any other particular types of statutorily regulated contracts in detail in Contract (eg consumer contracts). The discussion in this tutorial will be based on what you learn by completing the pre-reading and your own general knowledge.

(a) Identify at least two terms in Form 1AA that set out: (i) obligations of the parties; and Tenant must pay rent (ii) definitions of words and phrases used in the Agreement Urgent Repairs Urgent repairs, in relation to residential premises, means repairs to the premises that are necessary — (a) for the supply or restoration of a service prescribed in the regulations as an essential service; or (b) to avoid — (i) exposing a person to the risk of injury; or (ii) exposing property to damage; or (iii) causing the tenant undue hardship or inconvenience. Public utility services have the meaning given in the Land Administration Act 1997 and refers to services such as gas, electricity and water. Premises includes fixtures and chattels provided with the premises Reasonable time means: 26.1 between 8.00 am and 6.00 pm on a weekday; or 26.2 between 9.00 am and 5.00 pm on a Saturday; or 26.3 at any other time agreed between the lessor and each tenant

(iii) negotiable and non-negotiable terms (Note it states delete as appropriate) Right of tenant to assign or sub-let Right of tenant to affix and remove fixtures (non-negotiable) Requirement to negotiate time for proposed entry by the lessor onto land (negotiable) Security bond (b) What does the contract allow the parties to claim against each other if the Residential Tenancy Agreement is breached? 3. The tenant must pay rent on time or the lessor may issue a notice of termination and, if the rent is still not paid in full, the lessor may take action through the court to evict the tenant. 31. B If the lessor or property manager (or any person accompanying the lessor or property manager) causes damage to the tenant’s goods when exercising a right of entry, the lessor is obliged to compensate the tenant. (a) What are some additional terms you might expect to see the parties include in the Agreement? Unreasonably definition: for example Section 34.3 under Locks and security devices: The lessor or the tenant must not unreasonably withhold that consent in section Section 33.2 under subheading alterations and additions to the premises the tenant must not unreasonably refuse permission for the lessor to affix any fixture or make any renovation, alteration or addition to the premises.

Question 2 The purpose of this question is to introduce you to hypothetical fact scenarios. These are used often in legal education and are the basis of the tutorial questions and written assessments in this unit. You will be asked to apply the relevant law to the fact scenario in order to provide legal advice. In Contract the law you apply will be predominantly the common law that is found in the case law. In this tutorial we are using legislation that has codified and reformed many of the case law principles relating to landlords and tenants and concerning property rights and contractual rights, obligations and remedies of parties to residential tenancy agreements. Read the following facts and see what legal issues you can identify based on your general knowledge of contracts and on Part B of Form 1AA. Lavinia (lessor)recently bought a three bedroom house near the University. She decides to rent out the house and use the rent money to pay her monthly mortgage repayments. Lavinia places an advertisement in the local paper and on the University’s online accommodation information webpage. She receives a number of inquiries and eventually rents her house to three friends, Albert, Belle and Cabe. The rental agreement is in all their names. They paid the bond of $2,000 and they are paying $600 per week for the house ($200 each). Lavinia now seeks your advice in the following circumstances: (a) Lavinia discovers that the bond was paid by money given to Albert by his grandmother. Does this mean she does not have to pay it back to Albert, Belle and Cabe at the end of the lease? Security bond is a payment made in advance by a tenant to cover any costs for which the tenant may be liable at the end of the tenancy, such as damage to the property or chattels, outstanding water usage charges or unpaid rent. When a tenant pays the bond, the lessor must give a receipt on the spot, showing the: · name/s of those who paid, · amount, · date and · address of the rental premises The bond is the tenant's money and must be lodged with the Bond Administrator (Consumer Protection) until the end of the tenancy. If more than one person has paid the bond (such as in a shared house), it is important the names of all the parties appear on the lodgement form, to protect everyone’s share. The Bond Administrator will send a record of payment of security bond directly to the tenant/s. Answer: · Under s 45 tof the Residental Tenancy Agreement the Security bond must be lodged with Bond Administrator until end of tenancy. When a tenant pays the bond, the lessor must give a receipt detailing who paid for the bond. If more than one person has paid the bond, all of the party names must appear on lodgement form. It is assumed that Alberte, Belle and Cabe names are on the lodgement form as Laviana entered the contractual agreement of tenancy with these parties, therefore the bond submitted these party names on it, and not Albert’s grandmas. Therefore, Laviana is still required to pay Albert, Belle and Cabe at the end of the tenancy and cannot dismiss the payments despite the fact that Albert’s grandma payed for the bond. · doesn’t matter where the money came from, contract between the party. (b) Albert’s friend Toby visited him at the house. Toby’s right foot was badly injured when he fell through some rotted wooden floorboards on the veranda at the entrance to the house. Can Toby claim compensation for his injuries from Lavinia under the terms of the lease if he can

show that she has failed to maintain and repair the premises in a timely manner? If not, why not? What might be a legal basis for Toby to claim compensation from Lavinia? Can Albert, as a tenant, claim compensation on Toby’s behalf? If not, why not? 18.5 advise the lessor or property manager as soon as practicable if any damage occurs; and 18.7 not cause or allow to be caused injury to the lessor, property manager or any person lawfully on adjacent premises; and In every tenancy, if the need for urgent repair arises other than as a result of a breach of the agreement by the tenant: 23.1 the tenant is to notify the lessor or the property manager of the need for urgent repairs as soon as practicable; and FORM 1 AA Residential Tenancy Agreement Page 6 of 10 23.2 the lessor is to ensure that the repairs are carried out by a suitable repairer as soon as practicable after that notification; and • No right of claim, as the contract was not between the toby and the lessor, therefore the

(c) The three friends are refusing to pay their rent until Lavinia repairs the damaged veranda. S4 states that the tenant must not withhold rent because the tenant is of the view that the lessor is in breach of the agreement. The three friends cannot refuse to pay rent due to Laviana’s delay in repairing the damaged veranda as it would be a breach of the agreement and would not comply with the terms set out in the tenancy agreement. Hell or highwater cause-one set of promises cannot compensate the other set of promises....