Beruflich Dokumente
Kultur Dokumente
SCHOOL OF LAW
Student Family Name: Student Given Names: Student Number: Course:
Unit Name (in full): Unit Number: Time Allowed: Number of Questions: Total Number of Pages: Contracts 200011 3 hours (includes reading time) 3 4
Unit Coordinators Name: Simon Kozlina INSTRUCTIONS PLEASE READ CAREFULLY BEFORE PROCEEDING
1. Write your name and student number on this examination paper and on ALL answer booklets. 2. The time allowed for this examination includes reading time, however, you are allowed to begin writing straight away. 3. This is an OPEN BOOK examination. 4. Answer all questions. Please answer each question in a separate Answer Booklet. 5. The Exam is worth 55 marks. Question 1 is worth 20 marks. Question 2 is worth 10 marks. Question 3 is worth 25 marks.
Page
2
of
4
Question
1
(20
marks)
Robb
and
his
15
year
old
younger
brother,
Bran,
provide
building
maintenance
services
on
a
monthly
basis
to
a
local
landholder,
Tyrion.
These
services
include
such
tasks
as
cleaning
Tyrions
buildings,
repairing
broken
windows
and
locks
and
replacing
light
bulbs,
amongst
other
things.
The
arrangement
has
been
in
operation
for
quite
some
time
but
only
recently
did
the
parties
agree
to
reduce
everything
to
writing.
Robb
and
Brans
lawyers,
Stark
The
Law
Firm,
prepared
a
draft
of
the
written
contract
and
Tyrions
lawyers,
Lannister
&
Lannister,
negotiated
the
text
for
quite
some
time.
Eventually,
the
lawyers
settled
on
a
form
of
words
agreeable
to
their
clients
to
establish
a
3
year
contract
and
Robb,
Bran
and
Tyrion
signed
the
document
containing
the
finalised
text.
Just
as
Tyrion
was
about
to
sign,
Robb
said,
But,
of
course,
this
contract
doesnt
include
actually
checking
whether
your
buildings
are
structurally
sound.
All
we
do
is
simple
building
maintenance.
Tyrion
heard
the
comment
and
signed
anyway.
The
document,
titled
Agreement
on
Conditions
for
Building
Maintenance,
included
the
following
clauses:
6.
This
agreement
contains
the
entire
understanding
of
the
parties
with
respect
to
the
provision
of
building
maintenance
services
and
there
is
no
other
understanding,
agreement,
warranty
or
representation
in
any
way
binding
on
the
parties.
7.
The
parties
acknowledge
that
Robb
and
Bran
will
not
be
responsible
for
any
loss,
including
negligence,
arising
from
building
maintenance
undertaken
by
Robb
and
Bran.
8.
The
parties
acknowledge
as
a
condition
the
requirement
that
Robb
and
Bran
will
notify
Tyrion
of
any
remedial
building
work
required.
As
luck
would
have
it,
one
terrible,
cold
winter
night
a
few
days
after
the
contract
was
signed,
a
violent
storm
blew
through
Tyrions
lands
and
his
buildings
suffered
various
levels
of
damage.
Robb
and
Bran
arrived
the
next
morning
and
cleaned
up
the
debris
and
rubbish
and
repaired
a
few
of
the
broken
windows.
Repairing
one
of
the
seriously
damaged
windows
required
someone
to
hang
onto
the
outside
of
the
building.
Bran
fancied
himself
to
be
a
climber
(although
he
has
never
received
training)
and
had
a
go.
Unfortunately,
he
slipped
and
fell,
smashing
into
Tyrions
Bentley
motor
vehicle,
which
happened
to
be
parked
below,
the
repair
of
which
would
cost
tens
of
thousands
of
dollars.
Meanwhile,
Robb
was
cleaning
up
another
building
and
noticed
that
a
tree
had
fallen
during
the
storm
and
landed
heavily
on
the
building.
The
building
did
not
collapse
and
the
only
visible
damage
was
several
very
large
cracks
in
the
roof
that
Robb
can
only
see
when
he
climbed
a
ladder
to
replace
a
light
globe.
Sunlight
could
actually
be
seen
EXAM CS AUTUMN 2012*
Page
3
of
4
through
the
cracks
and
the
possible
damage
looked
significant.
Robb
remained
silent
and
did
not
inform
Tyrion.
Sometime
later,
while
Tyrions
Bentley
was
still
being
repaired,
the
building
with
the
cracks
collapsed
due
to
the
damage
caused
by
the
tree.
Advise
Tyrion
on
whether
he
can
sue
Robb
and
Bran
for
damages
and
whether
he
can
terminate
the
building
maintenance
contract.
Question
2
(10
marks)
As
equitable
estoppel
is
based
in
unconscionable
conduct,
mere
reliance
is
insufficient
to
justify
the
wielding
of
such
a
powerful
sword.
Discuss
this
statement
in
relation
to
the
materials
and
cases
examined
this
semester,
in
particular
at
least
two
of
the
judgments
in
the
case
of
Waltons
Stores
(Interstate)
Ltd
v
Maher
(1988)
164
CLR
387.
Question
3
(25
marks)
Three
friends,
Delta,
Keith,
and
Joel
want
to
make
a
4-episode
television
show
and
sell
it
to
a
television
station
for
lots
of
money.
They
approach
a
famous
performer
CL
to
be
the
shows
big
star.
Delta,
Keith
and
Joel
send
an
email
to
CL
that
sets
out
the
proposed
terms
of
the
arrangement
including
CLs
fee
per
episode
and
CLs
percentage
of
future
earnings.
CL
replies
via
text
message
to
Delta
that
he
will
only
participate
if
reasonable
entertainment
costs
are
also
included
in
the
arrangement.
Delta
replies
via
text
message
that
they
are
unwilling
to
agree
to
that
arrangement.
CL
sends
another
text
message
suggesting
that
any
disagreement
on
costs
could
be
referred
to
MMA
(Molly
M.
Arbitrators)
for
resolution.
Keith
calls
CL
as
soon
as
he
sees
that
text
message
and
says,
We
can
do
that,
subject
to
a
television
station
actually
buying
the
show.
CL
replies
to
Keith,
Put
my
name
on
that
rose,
Im
in
your
show.
Two
episodes
are
recorded
and
everyone
is
very
enthusiastic
about
the
project.
A
television
station
expresses
interest
in
buying
the
show
for
much
more
than
would
ordinarily
be
offered
if
sold
in
the
market
for
television
shows
but
with
two
requirements:
i)
The
show
must
be
re-recorded
in
High
Definition
format
(which
would
substantially
increase
the
cost
of
production
as
the
current
recording
is
in
the
much
cheaper
Standard
Definition
format);
and
ii)
The
television
station
will
receive
all
future
earnings
and
no
future
earnings
can
be
distributed
to
any
other
person.
Delta,
Keith
and
Joel
reluctantly
agree
to
the
terms
with
the
television
station
and
meet
with
CL
to
re-negotiate
the
payment
of
future
earnings
from
the
show.
Delta,
Keith
and
Joel
say
to
CL
that
the
television
show
cannot
proceed
unless
CL
agrees
to
new
terms,
which
will
be
the
same
as
the
original
arrangement
but
CL
will
receive
no
percentage
of
future
earnings.
CL
refuses.
Delta,
Keith
and
Joel
say
they
really
like
CL
and
want
to
continue
working
with
him
but
they
need
the
television
station
to
buy
the
show.
CL
EXAM CS AUTUMN 2012*
Page 4 of 4 refuses. Finally, Delta shouts Were powerful people, so, if you refuse, we will make sure you never work in this town again! Despite being a tall, strong man, CL is concerned about his future and agrees to the new arrangement. Returning to the studio to continue making the show, trouble strikes during the recording of the third episode. There is significant disagreement on who should pay for the seven highly trained masseuses hired by CL to assist him during recordings. CL shouts, Of course getting a massage is a reasonable entertainment cost in this industry; do you expect me to be bored all day? Delta, Keith and Joel hold firm and refuse to pay for the additional costs. Frustrated, CL says, Enough! I wont participate in this charade of a show any longer. He walks to the studio door, yanks it open and walks out, shutting the door loudly behind him. Joel runs to door, opens it and shouts in CLs direction, Fine! And dont come back. We dont want to work with the likes of you anymore anyway. Just after that eventful moment in the television studio, Delta, Keith and Joel sit down to look at the shows financial position and Joel says, Well, perhaps CL just saved us as there is no way we could re-record the show in High Definition format; the extra costs would have killed us! A. Advise Delta, Keith and Joel on the relevance of: a. offer, acceptance, certainty and intention in relation to whether a contract has been validly formed with CL, (5 marks) and; b. the conditional promise in relation to whether an enforceable contract exists and whether they would have been entitled to reject the offer from the television channel. (5 marks) B. Assuming an otherwise validly formed contract, advise Delta, Keith and Joel on whether CL repudiated the contract. (5 marks) C. Assuming an otherwise valid contract would have been formed, advise CL on the relevance of duress in vitiating the modified contract between him and Delta, Keith and Joel. (5 marks) D. Assuming an otherwise valid contract remained on foot, advise Delta, Keith and Joel on the relevance of frustration in validly ending their contract with CL. (5 marks) END OF EXAMINATION PAPER