Business law is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. This PPT contains assignment question based on Business law with their solutions which includes issue in facts and their legal regulation

1. BUSINESS
LAW

2. QUESTION 1
 Mr. and Mrs. Lee provide a guarantee to a bank over a loan for a motor
vehicle purchased by their son Lim. Lim subsequently defaults on his
repayments and the bank seeks to enforce the guarantee against his
parents. At the time the guarantee was entered into, neither parent had a
good grasp of the English language, both were elderly and they received
no independent legal advice. Mr. and Mrs. Lee believed that the extent of
their liability was far more limited than it was. Upon what grounds could it
be argued that reality of consent is missing from the guarantee
agreement? What would be the likely status of the agreement?
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3. QUESTION 2
 Critically analysis the following scenario and advise Belinda whether she has an
action against the ferry company for the loss of her car.
 Belinda, who resides in Melbourne, decided to take her family to Hobart. Arriving at
the ferry (which she has often used before), she is given a ticket on paying her fare
and the fare of her three children. On the reverse side is written:

 “All vehicles and passengers use this ferry at their own risk”
 She does not read these words nor does she see the notice on the ferry itself that
has identical wording. Due to negligent navigation by its captain, the ferry collides
with an underwater obstruction marked by a warning buoy. The ferry sinks slowly
enough for all the passengers and crew to be rescued but the ferry and vehicles on it
are lost.
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4. SOLUTION 1: ISSUE IN FACT
 Mr. And Mrs. Lee son has taken loan from the bank for
buying a motor vehicle.
 Mr and Mrs Lee have signed as guarantor for the loan in
the bank.
 Their son failed to pay the loan amount back.
 On date of signing guarantee, the couple didn’t know
read the contract as they were unable to read and write
English.
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5. LEGAL REGULATION
 An agreement is a binding contract that is legally enforced, wherein there
are two or more legally competent people mutually agreeing to an agenda
having specific minimum performance and acceptable standard.
 For a valid contract, parties must have entered into a legal relationship
enforced by law. Grounds on which reality of consent is argued as follows:
1. Reality of consent
2. Fraud
3. Mistake
4. Misrepresentation
5. Duress
6. Undue influence
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6. APPLICATION OF REGULATIONS
 Agreement entered into by the couple will become
voidable at the instance of one party only after judging
the reality of consent.
 Inability to read and write English on the date of signing
guarantee doesn’t fall under any of the grounds
provided.
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7. CONCLUSION
 Contract voidable at the advantage of one party.
 Mr and Mrs Lee cannot at any cost avoid their duties as
guarantor of the loan.
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8. SOLUTION 2: ISSUE IN FACT
 Belinda decides to migrate in Hobart along with her
family.
 For the purpose, she bought tickets from the ferry
company.
 It was written on the back side of the ticket “Travel at
your own risk”, which she didn’t read.
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9. LEGAL REGULATION
 The element of Caveat Emptor should be to applied here to a
certain extent, which means “Let the Buyer beware”, for there
are times when the buyer have less information about the
service being bought.
 Contract is implied in nature as per the current laws.
 Implied Contract means the agreement between the two
parties which is neither in written or in oral format, but has
been entered on the action of both the parties.
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10. APPLICATION OF REGULATIONS
 Belinda has entered into implied contract which means
she is using ferry services regularly.
 Responsibility of Belinda to know about the risk before
going for the contract as per Caveat emptor.
 Quasi contract is not applicable here.
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11. CONCLUSION
 On application of provisions of the implied contract and
the caveat emptor, Belinda cannot sue the ferry
company for losing her vehicle.
 She cannot claim damages or compensation from the
ferry company.
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12. THANK
YOU