T2 2021 MLL111 Exam PDF

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EXAMINATION PAPERFaculty of Business and LawTrimester 2 2021 ExaminationUnit Code: MLL Unit Name: Contract LawWord count: 2,000 words Anticipated writing time: TWO (2) HOURS Maximum exam time: You must submit your exam response within 48 hours of the exam start date and time. Hurdle requirement: Not...

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EXAMINATION PAPER Faculty of Business and Law Trimester 2 2021 Examination Unit Code: Unit Name:

MLL111 Contract Law

Word count: Anticipated writing time: Maximum exam time:

2,000 words TWO (2) HOURS You must submit your exam response within 48 hours of the exam start date and time. Not applicable.

Hurdle requirement:

Special instructions for candidates:   

This examination is OPEN BOOK. This examination constitutes 50% of your assessment in this unit. This examination comprises one hypothetical scenario with 2 questions and the second question is broken up into two parts. You are required to answer all of the questions.

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Type your responses to all questions into a separate single word document and save this document on your computer using the file name: student ID, unit code and the unit name, for example: 216123123_MLL111_Contract Law The total word limit for your exam response is 2,000 words. This includes all components of your response, including headings, references etc. A 10% leeway above 2,000 words is not allowed. Markers are instructed to disregard any words in excess of 2,000 words. Upload your exam response to the Exam Submission Dropbox in the CloudDeakin unit site. Check that you upload the correct file. Late submissions will not be marked. Remember to save your work regularly. It is important that you complete this task individually. Your submission will be reviewed for the purposes of detecting collusion and/or plagiarism. If you encounter any technical issues with CloudDeakin, please contact the IT Service Desk online or via phone (1800 463 888; +61 5227 8888 if calling from outside Australia) and record your ticket number as evidence of technical issues during the examination period.

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In the unlikely event that you cannot upload your completed exam paper to the dropbox, email it as an attachment to your unit chair [[email protected]] within the submission time and provide your IT Service Desk ticket number. You must then upload the same version to the dropbox as soon as possible.

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Late submissions are not accepted. If you do not submit within the submission time you must apply for Special Consideration.

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The breakdown of marks in this exam is:

Question 1 2(a) 2(b) Total Available Marks

Marks 25 15 10 50

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MLL111: Contract Law T2 2021 EXAMINATION

Dee owned ‘Orchid Mania’, a florist that specialised in selling orchids, which was located in a bayside suburb in Victoria. In May 2020, Dee heard that a large nursery had opened in a neighbouring suburb, but she did not attempt to find out anything about it because she was ready to retire. In July 2020, Dee advertised online to sell both her business and the shop from which she operated it. Dee did not receive any response to her advertisement for several months and began worrying that she would be unable to fulfil her plans to use the proceeds from the sale on overseas travel. On 29 November 2020, however, Belle entered Orchid Mania and told Dee that she had just resigned from her job as a lawyer and had seen her advertisement. Belle said that she was thinking of changing careers and had always loved flowers, but was concerned that she lacked business experience. Dee assured Belle that she would have a smooth transition into the florist business if she bought Orchid Mania. She stated that it was unlikely that Belle would have any competition in the area, as orchids were difficult to grow, so there were only a few suppliers of them. Further, Orchid Mania was especially profitable in the summer months, as this was ‘wedding season’ and all her regular customers were wedding planners. Dee stated that, if Belle bought Orchid Mania, she would introduce her personally to each of these customers. Belle agreed to buy Dee’s business and shop for $700,000. Dee asked Belle for her email address and said that her solicitors would send her a contract soon. On 1 December, Dee’s solicitors emailed Belle a short contract, which Dee had signed, that stated that Belle would buy Dee’s business and shop for $700,000 and the transfer would take place on 3 December. Belle printed out the contract, signed it and emailed it back to Dee’s solicitors that day. On 2 December, Dee’s friend told her that she had booked a three-week safari in Africa that was starting on 5 December, but her daughter was unwell and she did not want to leave her. Dee had intended to visit Africa as part of her trip, so she offered to take her friend’s place on the safari and planned to travel around Asia and Europe afterwards. Following the transfer of the business and shop on 3 December, Belle rang Dee and asked her to set up meetings with her customers. Dee said that she was unexpectedly beginning her overseas trip that week, so would be unable to introduce Belle to her customers until she returned in six months’ time. Dee nonetheless emailed Belle a list of her regular customers and their telephone numbers. Belle thought that the shop was looking a bit dated, so she decided to close the florist briefly while she undertook some renovations. Belle telephoned all of the customers on Dee’s list and explained that she had taken over Orchid Mania and, after making minor improvements to the store, would be re-opening it at the beginning of January. Belle contacted Enid, a renowned botanical artist, and offered to pay her $5,000 to paint a fresco of orchids on one of the shop’s white walls. Enid accepted the engagement and said she could begin working on the painting immediately. Belle indicated that the timing was perfect, as she was intending to re-open the florist on 2 January. Enid confirmed that she would finish the fresco by then. On 27 December, Belle visited the shop and discovered that Enid had completed a charcoal sketch on the wall, but only applied paint to three-quarters of it. Belle expressed concern that the fresco

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MLL111: Contract Law T2 2021 EXAMINATION

would not be finished by 2 January. Enid responded that, as each of her paintings was different, it was difficult to predict the time they would take, but she now estimated that she would need at least four more weeks to work on this one. Belle was furious and told Enid that she was unable to open the florist until Enid completed the fresco and, in the meantime, she was forgoing significant profits. Enid angrily retorted that Belle did not understand the artistic process, she could not paint under pressure and she was quitting. Belle then called several of Dee’s customers to reassure them that she would be re-opening the florist any day now. Nevertheless, they informed her that they were purchasing their flowers from a nursery in a nearby suburb that had begun selling a range of orchids. Belle believes that, had Dee introduced her personally to these customers, they would have remained loyal to Orchid Mania.

Answer the following questions: 1. Discuss all the possible grounds on which Belle might be able to rely to seek to recover damages from Dee and whether Belle is likely to succeed on each of them (25 marks total) 2. (a)

Would a court require Belle to pay Enid any money for the fresco? (15 marks)

(b)

Are there any remedies to which Belle might be entitled as a consequence of Enid quitting? (10 marks) (25 marks total)

- END OF EXAMINATION -

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