Business Law 1100Your pathway to Curtin. On campus. On tra.docx

Business Law 1100
Your pathway to Curtin. On campus. On track.
www.curtincollege.edu.au
Diploma of
Commerce
Lecture Topic 5
Contents of a Contract
What to do this week
Attend seminar
Read chapter 6 of First Principles of Business Law
Do the tutorial ‘The contents of a contract’.
Note – do not need to cover the material on innominate terms or
the Sale of Goods Act (no. 8 in tutorial). Do not need to read
about this or do the tutorial for these rules of law.
Learning Outcomes
After completing this topic you should be able to:
explain the importance of terms
explain the notion of freedom of contract
distinguish between statements that become terms and
statements that do not
distinguish between express terms and terms implied from the
circumstances
establish the relative importance of particular terms

4
Learning Outcomes
After completing this topic you should be able to:
explain how agreed terms may be used to exclude liability
know how and when terms are put into a contract by law
5
Terms of the contract
A ‘term’ is a particular agreed undertaking or promise made in
circumstances from which it can be inferred that it was intended
to be legally binding.
The ‘terms of a contract’ describe the entire contents of a
legally enforceable agreement.
6
Terms of the contract
Terms define the rights and duties of the parties.
Terms provide the yardstick by which performance of the
contract is measured.

7
Terms are important because…
Breach of contract:
Failure to perform in accordance with the terms means that
there is a breach of contract.
A breach of contract provides a ‘cause of action’
If sufficiently serious, a breach may justify a refusal to accept
performance in addition to a claim for damages.
8
The importance of terms
In order to establish whether there was a breach giving rise to a
cause of action must know:
An enforceable contract was created
What was promised in the contract -the terms of the contract.
The terms of a contract define the obligations of the parties. It
is by analysing the terms that you can find out what has to be
done to discharge those obligations
9

Freedom of contract
Persons are free to choose the contractual terms on which they
will be bound.
The law usually does not interfere with this, but it does set
some parameters e.g. illegal contracts are not enforceable.
The law also provides contractual protection for vulnerable
parties e.g. minors, persons of unsound mind.
10
Proving the terms of a contract
Terms of wholly oral contracts are established by evidence from
the parties themselves, or other witnesses.
Terms of wholly written contracts are proved by reference to
the written contract alone – the ‘parol’ evidence rule’
11
Parol evidence rule
A rule of evidence that a written document expresses the whole
contract
External evidence of intention and negotiations cannot be
considered

The rule excludes oral statements of extra terms
LG Thorne & Co v Thomas Borthwick & Sons (1955) 56 SR
(NSW) 81
12
Exceptions to the parol evidence rule
There are a number of circumstances in which the parol
evidence rule will not be strictly applied. These include:
Where custom or trade usage is relevant to the written
agreement
Where an ambiguity in the language of the contract needs to be
resolved
Where the subject matter or a party to the contract are not
identified in the written agreement.
Another situation that provides an exception to the parol
evidence rule is when the contract is partly oral and partly
written.
The terms of partly oral and partly written contracts are proved
by oral and written evidence: Van den Esschert v Chappell
[1960] WAR 114.
Summary
Proving the terms: Parol evidence rule.
Written contract on the face of it complete: LG Thorne
an alternative way of putting it is that terms cannot be added to
a contract after it has been reduced to writing: Olley v

Marlborough.
Exception if obvious importance; partly written/verbal contract:
Van den Esschert v Chappell
Statements that do
not become part of the contract
Not everything that is said while negotiating a contract becomes
a legally enforceable part of that contract. Distinguish between
the following:
Puffs
Opinions
Representations
16
Puffs
Puffs are exaggerated or obviously insincere statements made
by a contracting party to engage, attract or excite others into
contracts.
Puffs do not become part of the contract
17
But note this may change in the context of the facts (i.e. an
accountant providing an opinion as to the ROC of a business
that was for sale).
There are other areas of law that may cover these type of

situations – but not contract law.
Representations
A representation is a statement of fact made by one party when
negotiating a contract.
If it can be inferred from the circumstances that the statement
was not intended to be a binding promise, the statement does
not become part of the contract, even if it induced the other
party to enter into the contract.
19
Representations
A representation that proves untrue is called a
misrepresentation. Misrepresentations can be deliberate
(fraudulent), careless (negligent) or simply the result of error
(innocent).
Misrepresentations (even fraudulent ones) are NOT terms of the
contract’. But the law provides other relief.( ie NOT in
contract)
20
But remember
Not always clear from the form of the statement whether
promissory or not.
Will depend on context- what appears as a mere statement of
fact might be construed as a promise.

Term or other…
Sometimes there is disagreement about whether a statement
made was intended to be a term of the contract, or whether what
was said was merely a representation.
22
What is said in negotiations could be...
Salesman’s puff.
Not part of the contract.
Opinion
Representation.
Term.
Part of the contract.
23
Term of the contract or mere representation?
The courts may consider a number of factors in determining
whether a statement is a term or a representation, including:
whether the statement was promissory in nature;
the time that the representation was made relative to the making
of the contract;
the importance of the representation;
whether the person making the statement had any special skill
or knowledge; and
whether the representation was followed by a written contract.

Handbury v Nolan (1977) 13 ALR 339
Oscar Chess v Williams [1957] 1 All ER 325
24
Terms of contract or representation?
Test used by the court:
What can reasonably be inferred from the circumstances?
25
Handbury v Nolan (1977) 13 ALR 339
Oscar Chess v Williams [1957] 1 All ER 325
26
Classifying the terms in a contract
Some of the terms in a contract are more important than others.
One way to distinguish between the important and less
important terms is to classify them as conditions and warranties.
It is important to classify these terms correctly as the remedies
for a breach of condition is different from a breach of a
warranty.

27
Why classify? Remedies for breach
Breach of a condition –
injured party can terminate contract and/or sue for damages or
affirm and sue for damages
Breach of a warranty –
injured party can sue for damages.
28
Distinguishing ‘conditions’ and ‘warranties’
Conditions are terms that are of fundamental importance in the
agreement. Failure to perform a condition entitles the
aggrieved party to reject performance tendered, or to terminate
further performance of whole contract, and to claim damages for
the breach.
29
Warranties are terms which are of lesser importance than
conditions. Failure to perform a warranty does not justify
rejecting performance or terminating future performance. It
only justifies a claim for damages.

30
Whether a term is a condition or warranty depends on the
intention of the parties, as evidenced by the circumstances.
Ask whether it can be inferred from the circumstances that the
promise was so important that the person to whom it was made
(the promisee) would not have entered the contract without it,
and this was apparent to the person making the promise (the
promisor).
31
Associated Newspapers Ltd v Bancks (1951) 83 CLR 322
www.hinet.net.au/ accessed November 2008
32
Associated Newspaper Ltd v Bancks
(1951) 83 CLR 322
The test of essentiality is whether it appears ... the promise is of
such importance to the promisee that he would not have entered
into the contract unless he had been assured of a strict or a
substantial performance of the promise.

33
Bettini v Gye (1876) 1 QBD 183
http://www.npg.org.uk/collections/search/person accessed 27
March 2009
34
Agreed terms and terms implied by law
Terms can become part of a contract either:
by the parties expressly agreeing that they be included;
being implied by the law; or
by the operation of the law.
35
Express terms
Terms are ‘expressly agreed’ when they have actually been
declared or definitely stated, either in writing or orally.
Terms may be expressly agreed to in various ways: by being
discussed; or included in a signed document; or referred to on a
ticket or notice.

36
Express terms
Sometimes there is disagreement over whether particular terms
have been included in the contract or not. This depends on the
circumstances.
L'Estrange v F Graucob Ltd [1934] 2 KB 394
Causer v Browne [1952] VLR 1
37
The document handed to Causer did not appear to be a
contractual document, or a document that was likely to contain
contractual terms.
It cannot be inferred that Causer had agreed to exempt Browne
from liability.
38
EXCEPTION TO THE RULE:
If attention had been drawn to the fact that the non-contractual
document contained contractual terms.

39
Implied Terms
A term may be ‘implied’ into a contract when, in the
circumstances, it can be inferred that the term was intended to
be part of the contract without being expressly stated or referred
to.
Terms implied by fact and terms implied by law.
Such terms are not easily recognised by the courts. There are a
number of requirements that must be satisfied before a term will
be implied ad hoc.
40
When terms will be implied by fact
A term will be implied by fact only if it is obvious from the
circumstances that the parties must have intended to include
such a term as part of their agreement.
The court applies the officious bystander test to determine if the
necessary intention is present.
41
The officious bystander test is:
“What would the parties have replied if an officious
bystander had asked them at the time of their agreement whether

the suggested term was part of their contract?”
If it can be inferred that the parties would have answered ‘of
course’ the necessary intention is established.
42
The courts are willing to imply terms in fact to give a contract
commercial meaning. Without this, the contract is hard to give
effect to.
For this to occur, there must be gaps in the terms that have been
expressly agreed by the parties.
Must be reasonable and fair
Must be capable of clear, unambiguous expression
Must not contradict any express terms
Codelfa Construction v State Rail Authority of NSW (1982) 149
CLR 337.
Moorhead v Brennan [1991] 20 IPR 161
43
Terms implied by fact – Oral contracts
In informal contracts (oral contracts) where the terms have not
been spelt out, terms may be implied by reference to the parties
intentions where it gives effectiveness to a contract in the
circumstances of the agreement.

44
Exclusion of implied terms
“Where any right, duty, or liability would arise under a contract
of sale, by implication of law, it may be negatived or varied by
express agreement or by the course of dealing between the
parties, or by usage, if the usage be such as to bind both parties
to the contract.”
45
Terms put into a contract
by operation of law
Contracting parties cannot foresee every possible situation and
anyway, it is inefficient to try and negotiate every detail of a
contract. Most contracts therefore have some gaps.
The law may put terms into a contract to fill these gaps. These
are called terms provided for (or imposed) by law. There are
different possibilities to consider:
46
Terms provided by law
Terms put into all contracts by the common law.
Terms put into particular types of contract by the common law.
Terms put into particular types of contract by statute

47
Terms implied into all contracts
Universal terms are those put by the common law into all
contracts. Two important universal terms are:
To cooperate and do what is reasonable so that both parties get
the benefit of the contract;
Perri & Another v Coolangatta Investments Pty Ltd (1982) 149
CLR 537
Secured Income Real Estate (Aust) Ltd v St Martins
Investments Pty Ltd (1979) 144 CLR 596
Terms implied into all contracts
2. To act in accordance with good faith – i.e. use contractual
powers honestly and reasonably.
Alcatel Australia Ltd v Sarcella (1998) 44 NSWLR 349
Burger King Corporation v Hungry Jack's Pty Ltd [2001]
NSWCA 187
Terms put by law into specific kinds of contracts
Terms implied into certain types of contract are known as
‘generic’ terms. Generic terms are implied by the common law
into, for example, a sale of goods contract; a lease; an insurance
contract; a doctor and patient contract.

Breen v Williams [1995] HCA 63; (1996) 186 CLR 71
Terms implied by legislation
In many circumstances, terms are put implied into contracts by
statute. An important example is Sale of Goods Legislation
(SGL).
Australian states and territories inherited the English Sale of
Goods Act 1893. In Western Australia, it is enacted as the Sale
of Goods Act 1895 (WA).
Regulates sale of goods in the course of a business, rather than
a private sale.
Can contracted out of.
51
Terms implied by legislation
Sale of goods legislation contains many ‘residual’
provisions for commonly occurring gaps in sale contracts, e.g.
When, where and how delivery, and payment should be made.
When ownership in the goods passes to the buyer.
Imply terms into a contract making the seller liable for the
quality of the goods.
Not examinable in this unit
EXPRESS TERMS
IMPLIED TERMS

What express statements, oral or written, form part of the
contract?
Is a statement a term or a representation?
Is it promissory?
Was it made close to the entering of the contract?
Importance of the statement?
Did the maker have any special skill or knowledge?
Did a written contract follow?
Is a statement contained in another document, eg ticket, a term
of the contract?
A reasonable notice prior to the contract.
A course of dealing between the parties.
Terms may be implied:
To give business efficacy
By custom or trade usage
By legislation.
A Diagram for Express Terms and Implied Terms
A diagram giving a pretty good run down of express terms
implied terms
53
Terms that exclude liability
It is common for contracts to contain terms, variously called
exclusion, exemption or limitation clauses, that operate
exclusively to the benefit of only one party. The effect of these
clauses is to:
exclude all liability for breach;
limit liability for breach of contract or other wrongful conduct;
exempt a party from the obligation to perform as promised; or
limit the redress available to the other party where there is a
failure to perform (usually by specifying a limit to the amount
of damages available).

54
Contracting parties often restrict their liability by
agreement, e.g.
A bus company restricts liability for injury to passengers
A dry-cleaner excludes liability for damage to clothing;
An insurance company excludes liability for death arising from
dangerous sports
A manufacturer excluding liability for defective products
Curtin College
A member o Navitas l CRICOS Provider Code 02042G
55
Particular aspects of liability can be excluded or limited
but to be enforced the terms must be:
clear and precise in its wording and the aspects of liability that
are being excluded; and
properly brought to the attention of the other party prior to
entering into the agreement (so as to be incorporated into the
agreement).
Olley v Marlborough Court Ltd [1949] 1 All ER 304.
Note: Prior dealings would be relevant in determining whether a

term excluding liability has been brought to the attention of the
other party.
56
Interpretation of exclusion clauses
If they are properly incorporated into the contract, exclusion
clauses are generally interpreted in the same way as any other
term.
But where the meaning of an exclusion clause is ambiguous,
they are likely to be interpreted against the interest of the
preferred party (contra proferentem), for example:
Interpretation of exclusion clauses
Ambiguous words are interpreted narrowly.
Events which fall outside the ‘four corners’ of the contract will
not covered by an exclusion clause which is intended to exclude
liability for things done within the ambit of the contract.
Sydney City Council v West (1965) 114 CLR 481
Very good example in CBT
59
Topic 5 case study

Establishing the agreed terms in a contract
60
Case study: the sofa
Annie is moving into a new apartment and needs furniture.
Her friend Bella says: “I have a sofa that I want to sell. Come
and look at it. If you like it you can have it for $100. I think it’s
worth twice that much. It’s a very nice sofa.”
Annie goes to Bella’s house the next day and sees the sofa.
Annie likes the fabric and it looks clean and unmarked. Bella
says: “It’s Australian made.” Annie sits on the sofa for a bit.
She says: “It’s great. I’m happy to pay you $100 for it.” Bella
accepts her offer.
61
Annie pays Bella $100 and has the sofa delivered to her
apartment. But after sitting on it for an hour or two, Annie
discovers that the sofa is very uncomfortable indeed. In
particular, the cushions have thin, cheap stuffing through which
Annie can feel the hard frame and springs.
And the sofa cushions, although in good condition on one side,
are badly faded on the other. She finds a label under the couch
that says: ‘Made in Romania’.

62
On reflection, Annie is not satisfied with the sofa she has
bought. She says that it is certainly not ‘a very nice sofa’ which
is what Bella said. Annie says it was obvious that the sofa had
to be comfortable to sit on. She claims that Bella clearly said
that the sofa was worth at least $200 but, if anything, it is worth
much less. And, says Annie, Bella promised that the sofa was
Australian made and it isn’t.
Bella denies making any of the promises that Annie now
claims she made.
63
Question: Using the four step process determine the contents of
the contract. What are the agreed terms of this contract?
64
Ascertaining the terms of the contract
When there is a dispute involving a contract, the first step is to
ascertain what terms were agreed to. It is the terms of the
contract that determine what performance is owed.
But it is not always easy to ascertain the terms of a contract.
The parties may disagree about what the agreed terms are, or
what they mean, or what obligations they create.
Consider and discuss the case study and make a list of the
possible terms (The PLANNING STAGE). The following
questions may help you:

65
PLANNING STAGE
( or identifying the important facts for issue spotting)
What are the potential agreed terms in this contract?
Was it a term of the contract that the sofa was ‘very nice’?
Was it a term of the contract that the sofa was worth at least
$200?
Can a term be implied by fact that the sofa would be
comfortable to sit on?
Was it a term of the contract that the sofa was Australian made?
67
68

69
70
Thoughts for next week…
In relation to one or more of the possibilities considered today,
is Bella likely to be liable for breach of contract?
71
Notices
Do the tutorial ‘The contents of a contract’.
Read Chapter 6 of the textbook.
Make sure to study and learn the cases in this week’s lecture.
Copyright reserved 2015 Australian Law Courseware
Step 1

Identify the legal issue
The principle (or issue) of law is
Step 1
The principle (or issue) of law is
Step 2
Explain the rule(s) of law relevant to the legal issue
identified in step one with reference to authority.
Step 2
Explain the rule(s) of law relevant to the legal issue identified
in step one with reference to authority.
Step 3
Apply the law to the facts of the question in a detailed and
logical
manner, to each rule of law explained in step 2
Step 3
Apply the law to the facts of the question in a detailed and
logical manner, to each rule of law explained in step 2
Step 4

Draw possible conclusions (logical and consistent with what
you
have argued above)
Step 4
Draw possible conclusions (logical and consistent with what
you have argued above)
UNIT OUTLINE
Trimester 3a, 2018
Curtin Singapore
BL1100 - Business Law
Page 2 of 12

ESSENTIAL ADMINISTRATIVE INFORMATION
Unit: Business Law 1100
Credit Value: 25 credits
Pre-Requisite: Nil
Co-Requisite: Nil
Equivalent(s): Nil
Additional Requirements: Nil
Unit Status Note: if you fail this unit three times then you may
be terminated as per
Progress and Intervention Policy.
Ancillary Fees and Charges All fee information can be obtained
through:
Unit Website Moodle via the Student Portal is the unit’s
website. Students can access the
Student Portal via the College’s website:
https://learning.curtin.edu.sg
Tuition Pattern 4 hour weekly seminar
Computer based tutorial to be completed each week at students’
convenience.

Study Load Students should expect to study/work on this unit
for approximately 6 hours
per week, inclusive of the weekly seminar and computer based
tutorial.
Mobile Devices Mobile devices must be switched off when you
are in a class, unless
specified by the lecturer.
TEACHING STAFF
Lecturer’s Name: Maler Vilee
Email Address: [email protected]
Your lecturer will assist you with your learning and any
problems or difficulties you may be experiencing while
undertaking this unit. They will mark your assessments and
provide feedback in relation to your progress in this unit.
You will be able to contact your lecturer through the Student
Portal. Your lecturer is available for consultation. Please
check Moodle for their availability.
UNIT COORDINATOR / PROGRAM COORDINATOR
Every unit also has a person who is responsible for the overall
administration of that unit. This person is the Unit
Coordinator. If you cannot contact the person who is teaching
you (named above) or if you have further queries about
this unit, you may wish to contact the Unit Coordinator for this
unit or the Program Coordinator for the Course. Their
contact details are below:
Unit Coordinator’s Name: Anna Giardina

Program Coordinator’s Name: Pranavi Garg
https://learning.curtin.edu.sg/
mailto:[email protected]
Page 3 of 12
UNIT SYLLABUS
The following topics will be covered in this unit: BL1100 is an
introduction to law with a business focus. Students examine
the nature and sources of law in Australia. Key aspects of civil
law as they relate to business are explored with a
particular emphasis on contract law.
The following topics will be covered in this unit: Nature of law;
legislation; case law; how to problem solve; making a
contract; contents of a contract; performance and breach;
remedies; Australian Consumer Law; tort law; business
organisations in Australia.
INTRODUCTION
Welcome to Business Law 1100. We hope that this unit is an
interesting and valuable learning experience for you.

Please read this unit outline carefully as it contains important
information.
This unit aims to provide you with an introduction to the legal
system and an understanding of how law is relevant in
business. In fact, no business transaction can occur without
contemplation of the applicable law. The focus of your study
will be on a number of specific areas of the law that arise for
consideration in most commercial transactions, whether in
Australia or internationally. This unit also teaches you how to
construct a coherent and logical legal argument when
analysing and solving case studies.
LEARNING OUTCOMES
All graduates of Curtin College and Curtin University achieve a
set of nine graduate attributes during their course of
study. These tell an employer that, through your studies, you
have acquired discipline knowledge and a range of other
skills and attributes which employers say would be useful in a
professional setting. Each unit in your course addresses
the graduate attributes through a clearly identified set of
learning outcomes. They form a vital part in the process
referred to as assurance of learning. The learning outcomes tell
you what you are expected to know, understand or be
able to do in order to be successful in this unit. Each assessment
for this unit is carefully designed to test your
achievement of one or more of the unit learning outcomes. On
successfully completing all of the assessments you will
have achieved all of these learning outcomes.

LEARNING OUTCOMES
LO1
Interpret and apply the basic legal rules and principles arising
in the Australian legal system.
LO2
Demonstrate an understanding of the principal concepts and
sources of law in Australia to
identify and analyse legal issues.
LO3 Construct a coherent and logical legal argument using the
four step process approach.
LO4 Apply relevant legal concepts and principles to analyse and
solve case studies.
Upon successful completion of this unit students will have
developed the following graduate attributes:
GRADUATE ATTRIBUTES
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of 12
LEARNING ACTIVITIES
The tuition pattern is a 4 hour weekly seminar, supported by
specified reading and a case study.
The seminar will comprise a 2 hour interactive lecture. The
remaining two hours will be devoted to a case study on that
week’s seminar topic, where students will be required to work
through the case study in the class, with assistance from
the lecturer. This structure gives students the opportunity to
learn how to apply relevant legal concepts and principles
to analyse and solve case studies and receive feedback from the
teaching staff.
The computer-based tutorial assigned for that week can be
completed in the students’ own time at their convenience.
Students need to purchase a new book which has the details on
how they can download the computer-based tutorials.
If students purchase a second hand book then they will need to
purchase the license for the computer-based tutorials.

NOTE: THE COMPUTER-BASED TUTORIALS WILL NOT BE
ON THE COMPUTERS AT CURTIN COLLEGE,
STUDENTS WILL NEED TO PURCHASE A NEW BOOK
WHICH WILL HAVE THE LICENSE FOR THE TUTORIALS
OR PURCHASE A LICENSE IF A SECOND HAND BOOK
HAS BEEN PURCHASED.
LEARNING RESOURCES
COURSE NOTES / MOODLE
Course notes, assessment details such as due dates, weighting of
assessments and other details relating to course
material are accessed via the Moodle tab on your Student Portal
which can be accessed via the Curtin College
website – https://learning.curtin.edu.sg/user/login
PowerPoint slides will be available each week;
Work Sheets; Crosswords; Word Searches are some extra
materials available in Moodle; and
At the end of each week Revision notes and answers to case
studies will be made available.
Text
Essential Text
You need to purchase the following textbook in order to
complete this unit:
latest Edition 2017, CCH, Sydney. Only the original
purchaser of this text is licenced to download and install the

computer-based tutorials required for this unit.
edition of the textbook, you will need to contact
the publisher at [email protected] to purchase a license.
book for this unit, any earlier versions will not be
acceptable.
Recommended Text
It is highly recommended that you refer to the following
textbooks:
You do not have to purchase the following textbooks but you
may like to refer to them.
Ltd, Sydney.
Business Law (4th edition or later only), LexisNexis,
Australia.
After you have carefully read through this outline, make sure
that you:
1. Download the computer based tutorials you will have to do
each week. Instructions on installing your interactive
tutorials are provided on page iv of the First Principles of
Business Law (FPBL) textbook; it is just before the
content page. If you have any problems downloading this

software please contact the publisher at
[email protected] or the trouble shooting page at
www.ALCware.com.
Remember:
-protected and you can only install it on
one computer, so make sure you install it on a
computer you will have access to for the whole semester. After
installing the software, check that everything
works and then follow the on-line prompts to register your
installation.
reformat, you will lose your registration and when you
reinstall the FPBL software you will need a new registration
number (the old one won’t work). This may mean
buying a new license.
https://learning.curtin.edu.sg/user/login
Page 5 of 12
2. Attend the weekly seminar. You may wish to save the
PowerPoint slides to your own computer, or print them
out week by week. You should work through the weekly Case
studies before coming to class each week. You
need to bring the case study to class each week.
3. Complete the prescribed readings from the FPBL textbook for
the topic as indicated in the Programme
Calendar. Remember that there are legislative extracts at the

end of the book which should also be read as
they arise in each topic.
4. Work through the computer-based tutorial for each topic to
ensure you have properly understood the
materials in your own time.
5. Regularly check Moodle for announcements.
ATTENDANCE REQUIREMENT
Curtin College requires you to attend ALL classes. There is a
very close relationship between attendance and
academic performance. Students will be marked absent for half
the session if they are more than 30 minutes late or
do not return after the break.
A medical certificate is required if you are absent due to
medical reasons.
ASSESSMENT DETAILS
The assessment for this unit consists of the following items.
Assessment
Number
Assessment Tasks Weighting Week Due Assessed
Learning
Outcome(s)

Assessment 1 Test
20% Week: 4 (in your class
time)
1,2
Assessment 2 Assignment
30% Week 9: Day: Friday
Time: 16:00
1,2,3
Assessment 3 Final Exam (closed Book
except for 2 A4 sheets
hand written on both sides)
50%
Exam Week: Centrally
Scheduled Exam
2,3,4
TOTAL 100%
Unless otherwise indicated, all assessments are to be completed
as individual assessments, not as group
assessments. Please save a copy of your marked online

submissions as you may not have access to the marked
documents after the exam week.
Note: You may be required to present written assignment
submissions orally to your lecturer or other academic
staff, present evidence such as sources, written notes and drafts
and/or demonstrate relevant unit skills used
to produce your assignment.
Students should understand that compliance with instructions in
relation to an assessment task is critical. In
business it is essential you act on instructions given by clients.
In this unit instructions typically relate to
matters such as how to correctly identify or submit a piece of
assessment. Students MUST be aware that non-
compliance with these instructions can result in a ZERO mark.
Page 6 of 12
Pass Requirements
Students must complete all assessment tasks and achieve an
overall minimum mark of 50% for this unit.
Detailed information on assessment tasks:

Assessment One
Due Date: Week 4 (beginning 26 November)
Weighting: 20%
In class – week 4
Students are required complete a series of questions to test their
ability to apply their knowledge of Topics 1, 2 and 3
inclusive. The questions progress in complexity to test the
students’ ability to apply their knowledge by interpreting
and evaluating information in relation to short problem based
scenarios. Students are required to demonstrate their
decision making techniques to interpret facts, compare and
contrast answers.
No books, statutes or other materials (except for 1 A4 sheet of
paper with hand written notes on both sides)
are to be taken into the test.
The test will contain 4 short answer questions and 10 multiple-
choice questions, covering Topics 1, 2 and 3 (which
includes the readings and assigned E-tutorials) of the unit. You
will have 60 minutes to complete the short answers
and multiple-choice test. Failure to undertake this assessment
will result in the loss of 20 marks.
Marking Criteria
4 Short answers each worth 2.5 marks.

Multiple-choice questions (one mark per question) equals to 10
marks
Assessment Two
Due Date: Teaching Week 9 (Friday 4 January, 2019 4pm
WST)
Weighting: 30%
2 questions using the Four Step Process (30 marks)
Students will be provided a case study about which they will be
required to construct a coherent and logical legal
argument using the four step approach. The assignment will
require students to apply relevant legal concepts and
principles to analyse and solve the legal issues arising in the
case study by explaining and applying their knowledge of
the legal principles and rules arising in Australian legal system:
Topic 5.
Please note also that the information contained in the course
materials (the Source Book E-tutorials and seminar
materials) are sufficient when completing your assignments. It
is not necessary to research beyond these materials for
the purpose of completing assignments.
Students are assessed on their ability to explain and apply their
knowledge of the relevant principles and rules of law

using the four step process. Briefly that process is:
1. Identify the legal issue
2. Explain the relevant rule/s of law using authority: cases
and/or legislation
3. Apply the law to the facts
4. Reach a conclusion
Word Limit
The assignment should be a minimum of 500 words and not
exceed 2500 words inclusive of both questions (i.e. 2500
maximum in total). Please provide a word count on your cover
sheet. A penalty of 10% will be imposed on assignments
that exceed the word limit. Markers have discretion as to
whether to apply the penalty for an additional 100 words,
provided the discussion remains relevant. The assignment will
not be assessed if it exceeds 3000 words and will
result in a ZERO mark.
Assignment Two must be submitted by 4PM on the Monday of
the week due (teaching week 9), i.e. Friday 4
January, 2019.

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Marking Criteria: Marking Rubric: The case study will be made
up of two (2) questions; each will be worth 15 marks.
STEP ONE
0.5 marks for each question
STEP TWO
Explain the rule(s) of law with reference to relevant
authority is the most important step
6 marks available for each question
STEP THREE
The rules of law explained must be specifically applied
to the facts so a solution can be found
6 marks available for each question
STEP FOUR
A logical conclusion should flow from the above steps
OVERALL USE OF THE FOUR STEP PROCESS AND
STRUCTURE OF ANSWERS

4 marks available for overall use of 4 steps in each
question
Assessment Three
Due Date: Centrally Scheduled Exam
Weighting: 50%
The duration of the final examination is three hours preceded by
ten minutes reading time.
The examination builds on students’ critical thinking skills and
discipline specific knowledge learnt in the computer based
tutorials and case studies in the seminars.
No books, statutes or other materials (except for 2 A4 sheets of
paper with hand written notes on both sides)
are to be taken into the test.
Students are required to apply relevant legal concepts and
principles to analyse and solve the case study by explaining
and applying their knowledge of the legal principles and rules
arising in topics 5 to 10. The questions are structured as
follows:
PART A: Four Step Process (15 marks)
One four step process question – facts based on a case study.
Students construct a coherent and logical legal

argument using the four step approach for this question, worth
15 marks.
Marking Criteria: Part A: Marking Rubric: The four step
process question will be worth 15 marks.
STEP ONE
STEP TWO
Explain the rule(s) of law with reference to relevant
authority is the most important step
6 marks available
STEP THREE
The rules of law explained must be specifically applied
to the facts so a solution can be found
6 marks available
STEP FOUR
A logical conclusion should flow from the above steps
OVERALL USE OF THE FOUR STEP PROCESS AND
STRUCTURE OF ANSWERS

2 marks available
PART B: Multiple-choice questions (20 marks)
40 Multiple choice questions worth 20 marks (one half mark per
question).
PART C: Short Answer (15 marks)
Three short answer questions, worth 15 marks in total, each
question is worth 5 marks each. These questions
will not necessarily relate to the case studies.
Students are provided with further guidance for their
preparation for the final examination throughout the semester
and
in the revision week. In particular students will be advised of
the specific topics each question draws upon.
Page 8 of 12
Students should understand that compliance with instructions in

relation to an assessment task is critical. In
business it is essential you act on instructions given by clients.
In this unit instructions typically relate to
matters such as how to correctly complete a piece of
assessment. Students MUST be aware that non-
compliance with these instructions can result in a ZERO mark.
GUIDELINES FOR ASSESSMENT SUBMISSION
Hardcopy Assessment Submission
All hardcopy assessments must be accompanied by the Curtin
Singapore Assessment Cover Sheet which can be
obtained from the Student Central. All assessments must be
submitted by the due date as specified by the lecturer.
Electronic Assessment Submission
Electronic submission of assessments needs to be made to the
submission point on the Unit Moodle page. The
submission time is indicated by the date and time that electronic
submission is recorded in Moodle.
If required to submit an electronic file it is the student’s
responsibility to check that the electronic file(s) are:
a) Readable,
b) Fully complete,
c) In the required file format,
d) Clearly identified using the required file-naming convention
e.g. student ID number followed by the
assessment name; and
e) A back-up copy of the assessment has been kept.

Before submitting any assessments for marking, work through
the following checklist to assist with avoiding
plagiarising.
I HAVE:
-text references for all information (including
images, graphs, tables, etc.) taken from sources.
-text reference list of all sources cited in my
assessment.
I HAVE NOT:
other sources without referencing them.
my own.
All forms of cheating, plagiarism or collusion are regarded
seriously and could result in penalties including loss of
marks, exclusion from the unit or cancellation of enrolment.
LATE SUBMISSION GUIDELINES
Students will have 10% of the total assessment mark allocated
for the assessment deducted for each calendar day (or
part thereof) the assessment is late without prior negotiation
with the lecturer concerned. For example, if an
assessment item is worth 20 marks, 2 marks will be deducted
from the student’s mark awarded for each calendar day
(or part thereof) late. Assessments will not be marked if they

are submitted more than 7 calendar days (or part
thereof) after the due date or revised due date if an extension
has been granted. Work submitted after this time (due
date plus 7 calendar days or part thereof) may result in an F –
NC (Fail – Not complete) grade being awarded for the
unit.
For information on the deferred assessment conditions, please
refer to the Curtin College’s Late Submission
Guideline which is located under Policies and Procedures on the
College’s website at
http://www.curtincollege.edu.au.
REQUEST FOR ASSESSMENT EXTENSIONS
In order to receive approval for an Assessment Extension (ie
approval to complete an assessment task or submit an
assignment at a later date or sit an in-class test at a later date);
the students application must satisfactorily
demonstrate to their lecturer that there are exceptional
circumstances outside of their control that prevented them from
completing the assessment task in the prescribed timeframe.
Applications for extensions, along with any evidence, need to
be submitted via email to the lecturer on or
prior to the due date for assessments; or within 2 calendar days
for all in-class assessments, including tests.
The lecturer will notify the student of the outcome of the
request by email.
http://www.curtincollege.edu.au/
Page 9 of 12

Extensions /Applications for Deferred in-class tests will not be
considered more than 2 calendar days after
the test/submission due date.
-class tests will not be available after
the submission due date in Week 13.
deferred tests may be granted by the
lecturer for:
o Medical grounds supported by a medical certificate issued by
a doctor or a dentist only. Certificate
issued by a pharmacist will NOT be accepted;
o Counselling or an appropriate registered health professional;
o Equity considerations as requested by a Counsellor
(Disability) or Student Counsellor;
o Requests for extensions must be supported by evidence e.g.
medical certificate, letter from an
approved counsellor, police report.
Exceptional circumstances will require supporting evidence and
is subject to approval by the Academic Director or
their nominee on a case by case basis.
Extensions will not be granted in the situation where a student
has lost a digital file or submits a corrupt digital file
(marker cannot open the file). Students must take full
responsibility for backing up files and submitting clean files.
Holidays do not constitute grounds for assessment extensions.
An extension, where granted, will be limited to a maximum of
seven calendar days per assessment.

Students will be informed via email in Week 7 and 12 regarding
the deferred in-class test room details. Students must
ensure they check their Curtin College emails regularly for the
details and their availability to complete assessments
where an extension or deferred test has been offered, as no
alternate time will be available unless circumstances
arise that are beyond the student’s control. Arrangements for
these situations will be confirmed by e-mail to the
student by the College.
refer to the Curtin College’s Assessment and
Moderation Policy which is located under Policies and
Procedures on the College’s website:
REFERENCING STYLE
Students should use the CHICAGO 17th Edition referencing
style when preparing assignments. More information
can be found on this style from the Library web site at
http://library.curtin.edu.au/
ASSESSMENT MARKING
Students should allow 14 calendar days marking turnaround for
assessments.
SUPPLEMENTARY ASSESSMENTS
Supplementary Assessment / Exam
A supplementary assessment may be granted to a student by the
Board of Examiners in order to provide an additional

opportunity for a student to pass a unit. If a student passes a
supplementary assessment their total mark will not
change but their grade becomes a pass grade (PX – Pass with
Supplementary).
Students who have qualified for a supplementary assessment
will be notified by e-mail following the Board of
Examiners. Supplementary assessments will be conducted in the
Orientation week of the next study period
unless otherwise advised by the College and students must be
available to sit the assessment at the specified time
otherwise the offer will be withdrawn.
It is the responsibility of students to be available to complete
the requirements of a supplementary assessment.
For more information please refer to the Curtin College’s
Supplementary Assessment Policy which is located under
Policies and Procedures on the College’s website at
Deferred Final Exam (if applicable)
Within two calendar days following the missed Final Exam
complete the “Assessment Deferral Form” and attach a
valid evidence, for example, a medical certificate/ or a letter
from the counsellor, and a statement outlining the
reasons for missing the final exam.
Deferred Final Exams will be conducted in the Orientation week
of the next study period unless otherwise
advised by the College and students must be available to sit the
assessment at the specified time.
http://library.curtin.edu.au/

of 12
refer to the Curtin College’s Assessment and
Moderation Policy which is located under Policies and
Procedures on the College’s website:
ACADEMIC INTEGRITY AND PLAGIARISM
Curtin College is committed to ensuring that all students behave
with academic integrity. Therefore, it is essential that
students understand the principles underlying academic
integrity and behave in a manner according to these
principles. It is expected that students act with integrity when
they undertake all learning and assessment tasks.
The following are examples of academic dishonesty:
• Plagiarism, such as, the use of words, images and/or ideas of
another person without acknowledging the source.
Plagiarism is not permitted and considered an offence. Failure
to acknowledge the sources students have used by
using both in-text and end-text referencing will compromise the
mark they receive and may result in a penalty.
• Collusion occurs when students produce their work together,
but submit the work under individual names, giving the
impression that the work is wholly that of the individual. If
students lend/borrow assessments and use ideas from
another student’s assessment, this is also deemed to be
collusion. This is a deliberate attempt to deceive the lecturer
or tutor. Collusion is not permitted and is considered

plagiarism. ALL students involved will be penalised.
Students may be required to collaborate in an assessment or an
activity. Collaboration describes an activity in which
students have been given permission to work together, such as a
group report.
It is the student’s responsibility to ensure that they are familiar
with the rules covering plagiarism, collusion and
collaboration. Failure to comply may result in serious
penalties.
For more information on academic integrity, please contact the
lecturer or refer to the Curtin College Code of Conduct
which is located under Policies and Procedures on the College’s
website at http://www.curtincollege.edu.au.
Plagiarism Monitoring
Some (or all) assessments in this unit may be monitored for
plagiarism using the Turnitin plagiarism detection service
(see http://turnitin.com). Students who do not want assignments
retained in the Turnitin database, must lodge a
special request prior to the submission date. Please advise your
lecturer or Unit Coordinator if you do not wish to have
your assignment retained.
EXPECTATIONS OF YOU AS A STUDENT
Curtin College is committed to high standards of professional
conduct in all activities, and holds its commitment and
responsibilities to its students as being of prime importance.
Similarly, it holds expectations about the responsibilities
students have as they pursue their studies within the
environment the College offers.

As members of an academic environment both at Curtin College
and through the College’s association with Curtin
University, students are expected to:
equitably irrespective of gender, sexual
orientation, race, disability, medical condition, cultural
background, religion, marital status, age, or political
conviction;
nably be perceived as
sexual, racial, or gender-based harassment or
otherwise intimidating;
submit assessment pieces on time;
-mail account and
conduct all e-mail correspondence with the College
staff by using only this account
teaching staff;
policies and procedures;
h standards and a professional approach to their
study program.

washrooms and other facilities as you found them;
ss under the influence of alcohol or any other
anti-social behaviour altering substances.
Students are expected to participate actively and positively in
the teaching and learning environment. They must
attend classes when and as required, strive to maintain steady
progress within the subject, comply with workload
Page 11 of 12
expectations, and submit required work on time. If a significant
assessment is not attempted the student may receive
a Fail – NC (Not Complete) grade.
For more information please refer to the Curtin College’s Code
of Conduct Policy which is located under Policies
and Procedures on the College’s website at
STUDENTS’ RIGHTS AND RESPONSIBILITIES
It is the responsibility of every student to be aware of all
relevant legislation, policies and procedures relating to their
rights and responsibilities as a student. These include:
• the College’s policy and statements on plagiarism and
academic integrity and copyright,

• the College’s policies on appropriate use of software and
computer facilities,
• appeals and complaints resolution,
• student feedback,
• other policies and procedures.
Students are to take special note of the College’s requirement
that all students must regularly check their College e-
mail accounts and must conduct e-mail correspondence with the
College by only using this account. All students are
deemed to be held responsible for checking their College e-mail
accounts for important correspondence and
consequently will be held solely responsible for failing to act
upon any advice sent to this account.
For more information please refer to the Curtin College Policies
which are located under Policies and Procedures on
the College’s website: http://www.curtincollege.edu.au
IMPROVEMENTS AND STUDENT FEEDBACK
From time to time students will be invited to participate in
online surveys to provide feedback on the module and on
the College. Curtin College values student feedback as one of
the many ways to continuously inform improvements to
the Unit.
Recent unit changes to this unit include:
-reviewed and the structure of the units
have been further clarified and a number of
new tutorial activities have been added.
ADDITIONAL INFORMATION

If you have a query relating to administrative matters such as:-
essment results
Please email [email protected]
For all other administrative matters please contact Student
Central or call 65938000
Page 12 of 12
UNIT STUDY CALENDAR
If you have a printed copy of this document, you may like to

tear off this final page and keep the Study Calendar
handy as you work through the unit.
Week
Week
Starting on: Reading
Chapters
Topic/Lecture
Tutorial Activity
Assessment
Due
1
05 Nov 1
Topic 1: Introduction – The
nature and function of law
Government and Law in
Australia
2
12 Nov 2

Topic 2: Sources of law –
Legislation
Legislation
3
19 Nov 3
Topic 2: Sources of law –
Legislation
Case Law
4
26 Nov
5
Topic 4: Making a Contract
Making a contract
Assessment
One – Test 20%
(in class 60
minutes)

5
3 Dec
Writing Workshop:
Four Step Process
Writing Workshop: Four
Step Process: Making a
contract
6
10 Dec 6
Topic 5: Contents of a
contract
Contents of a contract
7
17 Dec 7
Topic 6: Performance and
Breach

Performance and
breach of contract
8
24 Dec 8
Topic 7: Remedies
Remedies for breach of
contract
9
31 Dec
9
Topic 8: Australian
Consumer Law
Consumer protection in
Australia
Assessment
Two 30%
Friday 4
January, 2019
by 4PM (WST)
10 7 Jan
11
Topic 9: Liability in tort law

The scope of tort law
11 14 Jan
12
Topic 10: Business
Organisations
Business Organisations
in Australia
12 21 Jan
Revision
Revision
28 Jan Study Review Week
- 4 Feb Exam Week
- 11 Feb Exam Week
Note, there may be a Study week prior to Exam Week, please
check the Curtin Singapore website
(https://curtin.edu.sg/current-students/academic-calendar/) for

actual start and end dates.
https://curtin.edu.sg/current-students/academic-calendar/
Curtin College AssignmentSingapore Trimester 3, 2018
Total Marks: 30 Weighting: 30%
Due Friday 4 January 2019 by 4pm (WST)
2 Four step process questions totally 30 marks
The case study which students are required to resolve using the
four step process is set out below. Students are required to
apply the relevant legal concepts and principles to analyse and
solve the legal issues arising in the case study by explaining
and applying their knowledge of the legal principles and rules
arising in Australian legal system: topic five inclusive.
Please note also that the information contained in the course
materials (the Source Book, computer based tutorials and
seminar materials) are sufficient when completing your
assignment. It is not necessary to research beyond these
materials for the purpose of completing assignments. You must
not use the internet for definitions, cases, research etc the
materials you have are sufficient to answer the questions. Also
to avoid plagiarism please answer the questions by yourself do
not discuss your answers with anyone.
NOTE:
· The fact scenario used in this assignment is fictitious.

· Students are to focus on answering the questions with
reference to the relevant issues raised by the question as they
arise from topic 5. Students do not need to (and should not)
undertake any additional research. The level of detail and
information contained in the course materials is sufficient to
answer the assignment i.e. the text book, PowerPoint Slides,
revision notes and worksheets.
· Note the four step process requires students to refer to case
law or legislation as authority for the rules of law explained in
step two. Where appropriate you will need to refer to any
applicable legislation or case authorities contained in the
materials for topic 5.
Marking rubric
The case study is made up of two (2) questions (1) and (2).
Each is worth thirteen (13) marks. A further four (4) marks are
allocated to how well the student has followed the four step
process; spelling; grammar; correct paraphrasing; referencing
and structure of answers.
In relation to the marks allocated for the overall use of the four
step process and structure of the answer, regard will be had to
not just whether the answer is “set out” in the four steps.
Consideration will be given to the clarity of the explanation of
the law with regard to applicable authority where relevant.
Students will be rewarded here for a detailed application of the

facts to the law explained. For example, a very good use of the
four step process would be the application of the facts
specifically to every principle of law explained.
Consideration will also be given to the logical presentation,
coherency and consistency of the explanation of the law,
application of facts and subsequent conclusion. Consequently
this will include a consideration of matters such as presentation,
formatting, expression, sentence structure, spelling, grammar,
paraphrasing and referencing.
Referencing and appropriate acknowledgement of sources
Most often errors in referencing are incidental or clearly
inadvertent. In the event of a level one incident of plagiarism
occurring, a student may be contacted by the University and
required to undertake further training or remedial work in
relation to referencing. Where the lack of correct referencing
appears to contravene the University policy on plagiarism, the
student’s paper will be referred to the Unit Coordinator and
dealt with according to University policy. This may amount to
academic misconduct.
An important aspect of the University Plagiarism Policy is
recognition that not all plagiarism is intentional or involves

cheating. If students are not learning as expected, they will be
made aware of their difficulties and helped to improve. Those
who deliberately choose to cheat by way of plagiarism,
however, will be identified and dealt with accordingly.
Students are strongly advised to understand their
responsibilities in relation to correct referencing and should use
Chicago Referencing.
Furthermore students are strongly advised to undertake this
assignment by themselves and not with other students to avoid
plagiarism.
Format of assignments
Assignments cannot be handwritten and must comply with the
following format requirements. Those assignments, which do
not conform to these requirements without prior agreement of
the unit coordinator, will either be returned to the student
unmarked or will have marks deducted:
· Document type: Word or pdf (word preferred)
· Font: Arial or similar font - no smaller than 12 point in size
· Pages: Numbered in top or bottom margin
· Spacing: Appropriate line spacing and paragraph spacing (1
and a half spacing)
· Margins: At least 2.5 cm top, left, right & bottom
Presentation
· Cover sheet (located on Moodle under Week 6 folder) must be
attached to the assignment
· Introduction to answers, content of body and concluding
comments
· Appropriate sentence structure
· Correct grammar, spelling and punctuation

· Paragraph size and breaks appropriate
· Consistent format
· Appropriate use of headings and sub-headings
· Within acceptable word limit
· Correct paraphrasing
· Appropriate referencing and acknowledgment of sources
Word Limit
The assignment should be a minimum of 500 words and not
exceed 2500 words inclusive of both questions (i.e. 2500
maximum in total). Please provide a word count on your cover
sheet. A penalty of 10% will be imposed on assignments that
exceed the word limit. Markers have discretion as to whether to
apply the penalty for an additional 100 words, provided the
discussion remains relevant. The assignment will not be
assessed if itexceeds 3000 words and will result in a ZERO
mark.
Assignment Two must be submitted by 4PM on the Friday of the
week due (week 9), i.e. Friday 4 January 2019 by 4pm (WST).
The word count does not include the following:
· cover sheet
· in-text referencing
· referencing list
· headings
Submission
Please read the submission process carefully. Students should
understand that compliance with instructions in relation to an
assessment task is critical. Students MUST be aware that non-
compliance with submission instructions can result in a mark of

ZERO.
All assignments must be submitted by 4PM (Western Standard
Time (WST)) on the Monday of the week the assignment is due,
i.e. Assignment is due 4PM on the Friday of the week due (week
9), i.e. Friday 4 January 2019 by 4pm (WST).
Students are required to submit their assignment to Turnitin
(plagiarism detection programme) and attach the report to their
assignment and then upload their assignment to Moodle for
marking.
Feedback on assignments
You should contact your lecturer in the first instance if you
need help understanding the course material or issues arising in
the assignment.
Unfortunately it is just not possible for your lecturer to review
draft assignments for comment before submission (in effect
double marking). If you have questions relating to your writing
style (grammar etc) we suggest that you make use of the
resources available at the Curtin College.
Lecturers will mark and return assignments within two weeks of
their submission. Students will be provided with comments on
what a student had done well and suggestions for improvement
in the future. This will include specific feedback on the use of
the four step process.
Assessment submitted early will not be marked before the due
date.
Please refer to the Unit Outline for the full procedure in relation
to penalties for late submission and requests for an extension.

Four Step Process Questions 1 & 2 (30 marks)
Question 1
Shirley and Jessica own and operate a dancing business in
Fremantle called Dance Force. The building that is being used
for dancing is located in an area that experiences high levels of
traffic congestion in particular the times that the dancing
facilities are used. The students have to wait outside on the
lawn area before their classes commence, due to the fact that
the building is too small to accommodate the students to wait
inside. Both Shirley and Jessica are concerned for the safety of
their students as they have to wait outside and many mums are
just dropping them off as the parking facility is poor. To
increase safety for their students Shirley and Jessica have
decided to have an extension added onto the building.
Annabelle a friend of Jessica’s knows a good construction
company by the name of Compliance Builders and tells Jessica
that she would arrange a meeting with them. Shirley and Jessica
speak with the manager Enrico of Compliance Builders about
adding on a room so the students could wait in there before
entering the dance studios.
Shirley and Jessica went to an architect to get the plans for the
room and when it was finished they gave it to Enrico to give a
quote. Enrico comes back with a quote saying that to add on the
room to the specifications on the plan it would cost $50,000 in
total and says that he will need 6 weeks to complete the job and
that the dance studio cannot be used whilst construction is being
carried out. Shirley and Jessica agree with the price and it was
verbally emphasised to Enrico that the building work must be
completed by the 15 December. The completion date is very

important to Shirley and Jessica as the students need to be able
to go to the dance studio to practice for the upcoming
championships that are going to be held in late January in
London, as the students will need to practice and learn their
dance routines.
Enrico assures Shirley and Jessica that Compliance Builders are
the ‘best builders in the Western Australia’ and that they ‘only
use the best materials’ and that they are the only company that
‘completes constructions in time’.
Enrico sends Shirley and Jessica a standard contract with the
specification’s which Shirley and Jessica look and go ahead and
sign the contract and there is no mention of the completion date
in the contract, but Shirley and Jessica assume that Enrico is
aware of the importance of the completion date due to their
verbal communication.
They also both don’t bother to read the remaining contract
where there is the following term:
“Compliance Builders accepts no responsibility for any damages
or loss whatsoever to the existing building where the
construction work is being carried out however caused.”
Shirley and Jessica then return the signed contract to
Compliance Builders and Enrico signs the contract on behalf of
Compliance Constructions.
Enrico on behalf of Compliance Constructions commences the
construction of the room on 29th October. In the meantime
Shirley and Jessica cease the dancing classes and are awaiting
for the completion of the room.
On the 3rd December Shirley and Jessica ask Enrico on how the
extension of the room is going and remember it has to be

finished by the 15th December. Enrico replies we have had
some difficulties in construction the extension as the congestion
in the street has made it impossible for us to work as such it is
not going to be possible to finish by the 15th December.
Shirley and Jessica are furious and they say ‘we verbally told
you the importance of finishing the extension by the 15th
December and how important it was due to the upcoming
championships’ Enrico replies that it is not in the contract.
Question (1) 13 Marks
Assume that there is an enforceable contract. Using the four-
step process, discuss what are puffs, opinions and terms in the
contract and whether Shirley and Jessica can succeed in
establishing their argument that the contract was partially
written and partially oral. Only consider the parole evidence
rule for the partially written and partially oral contract.
Question (2) 13 Marks
Chickens Galore saw an internet advertisement by Speciality
Printers stating that they are the ‘best printers in the country’
and before delivery Speciality Printers ‘ensures that they would
exercise reasonable care in proof- reading all materials’.
Chickens Galore phoned Speciality Printers for an appointment
to negotiate a contract to print all the promotional materials for
the next three years. Whilst they were negotiating Chickens
Galore made it very clear that it is a term of the contract ‘that
all reasonable care must be taken to ensure that all materials
delivered are without errors’. Speciality Printers gave the
assurance ‘that all materials would be proof-read before
delivery’ in front of the lawyers involved in the contract.
Chickens Galore entered into a three-year contract with
Speciality Printers to print all promotional materials of

Chickens Galore. Therefore, Speciality Printers was entrusted to
print the relevant scratch tickets for the promotion. The clause
included in the contract is as follows:
“Speciality Printers accepts no responsibility for any loss or
damage whatsoever caused by errors in printing, resulting from
defective typesetting work by the printer or any of its
employees.”
It was discovered that instead of only one ticket being printed
with a gold car, every one in five tickets revealed a gold car.
This error transpired due to the fact that an employee of
Speciality Printers allowed a vacation student to experiment
with the printing machine. As such was not detected because
Speciality Printers had not conducted proof-reading on
Chickens Galore scratch tickets due to cutbacks to increase
profits.
The printing error by Speciality Printers has caused Chickens
Galore being engaged in drawn-out lawsuits from numerous
customers demanding a Mazda CX-9, as they have scratched a
gold car. Under these circumstances Chickens Galore wants to
terminate its contract with Speciality Printers and once the
extent of the losses becomes apparent will sue Speciality
Printers for damages.
Question (2) 13 marks
Assume there is an enforceable contract. Using the four-step
process, discuss what terms are expressly agreed in relation to
the contract. In your answer be sure to discuss whether
Speciality Printers can rely on the exclusion clause in the
contract. You will also need to determine the status of any
relevant terms, including whether they are a warranty or a
condition. Students are reminded that they have been instructed
to confine their answers for this assignment to topic five and
NOT to consider the law in relation to formation of a contract,

performance, breach of contract or remedies.
Overall 4 Steps: 4 marks
2
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