PR I N C IP L ES O F C O N T R A C T L AW A

L AW7428
TRIME STER TWO , 2011

ASSI G N M E N T I NST R U C T I O NS

1. O verview

The assignment requires each student to assume that he or she is a lawyer acting for a client
given a hypothetical factual situation. The client asks for a written memorandum of advice.

The factual situation raises issues relating to the material elements of contract formation
that are considered in weeks 1 to 5 of this unit (i.e. agreement, consideration, intention, and
certainty).

The assignment is designed primarily as an exercise in the application of principles of

contract law covered in this unit to a fact scenario. Accordingly, this is not D ³UHVHDUFK´
assignment in the sense that students are expected to research all the relevant law
themselves. In undertaking the assignment, students are not expected to go beyond those
readings (both primary and secondary materials) referred to in the Unit & Reading Guide
for this unit (although there is no prohibition against doing so).

2. Word limit

The word limit is 2,250 words (not including footnotes and bibliography). Students may
exceed this word limit by 250 words before incurring a penalty meaning the absolute
maximum permissible word count is 2,500 words (rules relating to penalties are outlined
below).

3. Submission

The assignment must be submitted by 5.00 pm on F riday, 17 June 2011 elect ronically
via Blackboa rd. Students must also comply with the following requirements:
a. The format of the electronically submitted document must be either Word 2007
(filename with extHQVLRQ ³GRF[´ Word 97-2003 (filenamH ZLWK H[WHQVLRQ ³GRF´RU
Rich Text (filename with extensioQ ³UWI´ 8WLOL]LQJ WKH ³Save As´ function when the
document is displayed on your computer screen will allow you to do this - simply
HQVXUHWKDWWKH³Save-as-type´ option selected in the dialogue box is either ³Rich Text´,
³Word 97-2003´RU³:RUG´ before the save is executed. No other format will be
accepted.
b. The filename of each student's assignment should be the unit code, followed by the
student¶s surname, followed by the student¶s Monash University student identification
number, e.g. ³LAW74286PLWKGRF´.
 Principles of Contract Law A T2 2011 (Assignment Instructions)

Students having technical difficulties in submitting their assignment via Blackboard should,
in the first instance, contact a member of staff at MUSO Support:

http://www.monash.edu.au/muso/support/students/contact.html

It is not the responsibility of the lecturer to provide any such technical assistance to
students.

Assignments must not be submitted by any of the following methods:

a. by email;
b. hard copy by delivery in person;
c. hard copy by post;
d. hard copy by fax.
An assignment submitted by any of these means will not be accepted.

As the assignment must be submitted electronically, the standard assessment task

coversheet need not be completed. However, by submitting the assignment
elect ronically, the student is deemed to:
x have UHDG WKH XQLYHUVLW\¶V 3ODJLDULVP 3ROLF\ DQG 3URFHGXUHV
[http://www.policy.monash.edu/policy-bank/academic/education/conduct/plagiarism-
policy.html.];
x understand the consequences of engaging in plagiarism and collusion as described in
University Statute 4.1. Part III ± Academic Misconduct
[http://www.monash.edu.au/pubs/calendar/Statutes/Statute04.html#Heading110];
x have taken proper care of safeguarding this work and made all reasonable effort to
ensure it could not be copied;
x acknowledge that the assessor of this assignment may for the purposes of assessment,
reproduce the assignment and:
i. provide to another member of faculty; and/or
ii. submit it to a plagiarism checking service; and/or
iii. submit it to a plagiarism checking service which may then retain a copy of
the assignment on its database for the purpose of future plagiarism
checking.
x certify that the student has not plagiarised the work of others or participated in
unauthorised collaboration when preparing the assignment.
x understand that any student found guilty of having breached Statute 4.1 in respect of
academic misconduct may be reported to the Board of Examiners for Admission to
Practice.

4. Penalties

The following penalties will be strictly enforced:

a. Ten percent (10%) of the total mark available (30 marks) will be deducted if the word
count exceeds 2,500 words and for each multiple of 100 words thereafter. The word
count for each assignment will be determined by use of the Microsoft Word ³ZRUG
FRXQW´ IXQFWLRQ DV DSSOLHG WR WKH VWXGHQW¶V HOHFWURQLFDOOy submitted version of the
DVVLJQPHQWZLWKWKH³LQFOXGHIRRWQRWHV´ER[unchecked and bibliography unselected,
meaning all headings and sub-headings in the main body of the memorandum will be
included in the count). Accordingly, if the word count is 2,501 words, 3 marks will be

2
 Principles of Contract Law A T2 2011 (Assignment Instructions)

deducted from the total mark (2,500 words will not incur any penalty); for 2,601
words, 6 marks will be deducted; etc. Any attempt by a student to circumvent the word
limit by including substantive argument in either footnotes or an ³DSSHQGL[´ to the
assignment will not be tolerated (the text in such footnotes or appendices will be
included in the word count).
b. If an assignment is submitted after the due date without an extension having been
previously granted by the Chief Examiner, ten percent (10%) of the total mark
available (30 marks) will be deducted for each day or part day by which the assignment
is late. For the avoidance of doubt, where Blackboard records a student as having
submitted the assignment at 5.01pm on 17 June 2011, a 3 mar k penalty will be
incur red. Students who submit their assignments late because of technical difficulties
with uploading their assignments via Blackboard will not be exempted from the
penalty provisions. However, in the unlikely event that there is a service disruption to
Monash University¶s Blackboard system just before the assignment is due, such that
uploading of a student¶s assignment is not possible, the Chief Examiner will consider
waiving the application of the late-penalty provision having regard to the particular
circumstances of each student¶s case. Students are therefore encou raged to fully
familia rize themselves with the mechanics of Blackboa rd well before the
assignment is due and to submit their assignments well before 5.00pm on the due
date.
c. Failure to submit the assignment via Blackboard (via the Assignment Submission
links) will result in the assignment being deemed not to have been submitted at all. A
score of zero will be recorded. Emailing the assignment to your lecturer, or any other
Monash University email address, is not acceptable.
d. Failure to submit the assignment in one of the required document formats (as outlined
in section 3 of these instructions) will result in the assignment being deemed not to
have been submitted at all. A score of zero will be recorded.
e. Failure to comply with the file naming requirements of the submitted assignment (as
outlined in section 3 of these instructions) will incur a penalty of 1 mar k.

([WHQVLRQVZLOOQRUPDOO\EHJUDQWHGRQO\ZKHUHWKHVWXGHQW¶VFDSDFLW\WRFRPSOHWHWKHZRUN
E\WKHGXHGDWHKDV EHHQDIIHFWHGE\VLFNQHVVRURWKHUVHULRXVFDXVH EH\RQGWKHVWXGHQW¶V
control. Neither computer failure nor loss of data is an acceptable reason. A maximum
extension of five (5) working days may be sought. Students who seek this short extension
must submit an application to the Chief Examiner (Jason H ar kess) of the unit no later than
48-hours before the due time and date, and attach supporting evidence such as medical
certificate or a letter from a work place manager. No lecturer in a unit other than the Chief
Examiner can grant extensions.

The Postgraduate Studies Short Extension Application Form is available at:

http://www.law.monash.edu.au/current-students/forms/pg-assessment-short-extension-
form.doc. The Chief Examiner will notify a student via his or her Monash University
student email address as to whether an application for extension has been approved.
Extensions will not be granted beyond the date on which marked assignments are due to be
returned to students.

A student whose work during a teaching period has been affected by acute illness or
exceptional cause beyond their control and require an extension of more than five working
days will need to submit the appropriate Special Consideration form.

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 Principles of Contract Law A T2 2011 (Assignment Instructions)

5. Assessment criteria

7KHVWXGHQW¶VDVVLJQPHQWwill be assessed in accordance with the following criteria.

(i) K nowledge & Understanding of the Topic

x Evidence of selectivity and focus in research strategy
x Extent to which resources located and relied upon are relevant to resolving the
problem
x Accurate and comprehensive knowledge of the law (e.g., correct identification of
key sections, or key cases or articles)

(ii) A nalysis & A rgument

x Emphasis on critical analysis (as opposed to descriptive or discursive material)
x Quality and persuasiveness of the argument (i.e., issues followed through,
arguments fully developed, implications explored, contrary arguments
anticipated)
x Synthesis and criticism of the authorities (i.e., resource materials)
x 6HOHFWLRQDQGXVHRIVRXUFHVLQVXSSRUWRIVWXGHQW¶VRZQDUJXPHQWDQDO\VLV
x Evidence that the student has criticised and qualified his or her own arguments

(iii) Structure & W riting

x Logical and coherent structure
x Clarity of expression and conciseness
x 3UHVHQFHRIDQµDXWKRU¶VYRLFH¶GRHVWKHDXWKRUPDNHFOHDUKLVRUKHURZQYLHZV
in relation to issues discussed?)
x Grammar and spelling

(iv) Presentation & Referencing

x Clear transitions between sections of the paper (your paper should have an
introduction and a conclusion and otherwise make use of headings to reflect the
compartmentalization of relevant legal issues).
x Appropriate use of footnotes (all proposition of legal principle should be
supported by legal authority)
x Correct citation and compliance with style: (a) assignments must be typewritten
and submitted in the prescribed electronic format as outlined above; (b) citations
of cases and other reference materials should comply with accepted conventions,
such as the Australian Guide to Legal Citation:
http://www.law.unimelb.edu.au/mulr/aglc.htm.
x Bibliography

(v) O verall
x An overall appreciation of how a potential contract problem might be practically
resolved by a court in Victoria.

6. Plagia rism, cheating and collusion

Monash University is committed to upholding standards of academic integrity and honesty.

Plagiarism in any form is unacceptable and will be treated seriously by the university. This
includes any act of dishonesty in assessment such as plagiarism, collusion, resubmission of
4
 Principles of Contract Law A T2 2011 (Assignment Instructions)

previously marked work in different units, examination misconduct and theft of other
VWXGHQWV¶ZRUN

The University is actively committed to preventing plagiarism, cheating and collusion for
WKHSURWHFWLRQRIWKHXQLYHUVLW\¶VUHSXWDWLRQ DQGVWDQGDUGV IRUFXUUHQWDQG IXWXUHVWXGHQWV
Severe penalties may be imposed on students who engage in, or who support other students
engaged in, activities which seek to undermine the integrity of the unit assessment process.

Plagia rism7RWDNHDQGXVHDQRWKHUSHUVRQ¶VLGHDVDQGRUPDQQHURIH[SUHVVLQJWKHPDQG
WR SDVV WKHP RII DV RQH¶V own by failing to give appropriate acknowledgement. This
includes material from any source, staff, students or the Internet ± published and un-
published works.

Collusion: Unauthorised collaboration on assessable work with another person or persons.

C heating: Seeking to obtain an unfair advantage in an examination or in other written or

practical work required to be submitted or completed for assessment.

The University will consider that plagiarism has occurred in any of the following
circumstances:
x when phrases and passages are used verbatim without quotation marks and without a
reference to the author
x when an author's work is paraphrased and presented without a reference
x when other students' work is copied or partly copied
x when items for assessment are written in conjunction with other students (without
explicit direction by the relevant staff member)
x when a piece of work has already been submitted or assessed.
x 2WKHUSHRSOH¶VGHVLJQVFRGHVRULPDJHVDUHSUHVHQWHGDVWKHVWXGHQW¶VRZQZRUN
x Laboratory results of someone else are used without appropriate attribution
x Lecture notes are reproduced without due acknowledgement.

Acts of dishonesty in assessment could result in penalties, including failure in the unit and
possible exclusion from the University )RUIXUWKHUGHWDLOVSOHDVHUHIHUWRWKH8QLYHUVLW\¶V
Discipline Statute (Statute 4.1).

University statements on plagiarism are contained in the

x University Discipline Statute 4.1 at
http://www.monash.edu.au/pubs/calendar/statutes/statutes04.html
x University Plagia rism Policy at http://www.policy.monash.edu/policy-
bank/academic/education/conduct/plagiarism-policy.html
x University Plagia rism Procedures at http://www.policy.monash.edu/policy-
bank/academic/education/conduct/plagiarism-procedures.html

For guidance on the extent to which students are permitted to collaborate on assignments,
see http://www.monash.edu.au/teaching/academic-integrity/student/whatisplag.html

5
 Principles of Contract Law A T2 2011 (Assignment Instructions)

7. Return of assignments

Students can expect assignments to be returned four weeks after the submission date or
receipt, whichever is later. Your lecturer will advise you of when assignments have been
returned.

6
 Principles of Contract Law A T2 2011 (Assignment Instructions)

F acts
Sam owns a vineyard on the Mornington Peninsula. His best friend, Amy, is a solicitor.
He has known Amy since they were in preschool together. Amy works 90 hours a week, 52
weeks a year at a Melbourne law firm.

When Sam was setting up his vineyard in 2005, Amy lent him $10,000 to buy a tractor,
which he promised to pay back within 12 months.

On 1 January 2009, Amy told Sam that she was sick of never seeing the sunlight and was
desperate to spend a weekend in the country. Sam said to Amy, ³Picking grapes in the sun
would make you feel better. And you know there is always a room for you at the vineyard.
7KHUHPLJKWHYHQEHVRPHZLQHLQLWIRU\RXWRR´

After several years setting things up, in early 2009, Sam produced 1000 bottles of a ³-DFN-
in-the-%R[´9LQWDJH&KDUGRQQD\DVKLVILUVWYLQWDJH,Q)HEUXDU\KHVROG
bottles to the local Boles Supermarket. He has not been able to sell any other bottles of the
³-DFN-in-the-%R[´9LQWDJH&KDUGRQQD\

On 1 January 2011, Sam was listening to the radio when he heard the following
advertisement:

³ Down. Down. Prices are Down. And Staying Down. If you come in to the store, anyti me of the
ZHHNDQ\WLPHRIWKH\HDU\RXZLOOILQGµ-DFN -in-the-%R[¶9LQWDJH&KDUGRQQD\IRU $1.95. That
is our price promise to you´

2QWKHVDPHGD\KHUHFHLYHGWKHIROORZLQJOHWWHUDGGUHVVHGWR³7KH2ZQHU³-DFN-in-the-
%R[9LQH\DUG´IURP3ORQN$XVWUDOLD/Wd, a national wine manufacturer:

³Wine purchase agreement:

Plonk Australia Ltd is a large wine manufacturer. Plonk Australia Ltd buys wine from small
vineyards and re-sells it under our own label.

We confirm, on the terms set out in this letter, that Plonk Australia Ltd is interested in paying a total
RIIRUERWWOHVRI³-D ck-in-the-%R[´9LQWDJH&KDUGRQQD\WKH³ Wine ´

In order to accept this proposal please sign and date this form and return it to us, together with one
bottle of the Wine. We will contact you to collect the balance of the wine after we receive your form.
Yours

Plonk Australia Ltd

9HQGRU6LJQDWXUH«««««««««'DWH««««««««´

Sam signed and dated the form and, at 4.30 pm on 30 March 2011, put it in the red post box
outside his vineyard in an envelope addressed to Plonk (Victoria) Pty Ltd (the Victorian
subsidiary of Plonk Australia Ltd). Soon after doing this, Sam began to regret his actions.
He felt terrible because the price offered by Plonk Australia Limited was not enough to
allow him to pay his debt to Amy.

7
 Principles of Contract Law A T2 2011 (Assignment Instructions)

As Sam walked down his driveway, with a bottle of the Jack-in-a-Box Vintage 2008
Chardonnay in hand (which he could not fit in the post box), his neighbour, Kate, stopped
KLP.DWHVDLGSRLQWLQJDWWKHERWWOHLQ6DP¶VKDQG, ³I had a bottle of your wine last night.
I loved it. I will give you $10,000, inclusive of G ST, for 500 bottles of that wine. I will pick
it up in two weeks. What do you say?´

Sam was aware that Kate had tried a bottle of the Jack-in-a-Box Vintage 2008 Shiraz the
night before. Sam did a dance-of-joy on the spoW NLVVHG .DWH DQG VDLG ³I will get my
solicitor to send you something in writing setting out those terms. ´

3ORQN 9LFWRULD 3W\ /WG UHFHLYHG WKH FRPSOHWHG ³:LQH 3XUFKDVH $JUHHPHQW´ IRUP DW
11.00am on 1 April 2011.

At 5.00pm on 1 April 2011, Amy turned XS DW 6DP¶V YLQH\DUG DQG VDLG ³I finally got a
weekend off. I am here to pick grapes´ $P\ EURXJKWKHUIULHQG2ZHQZKRZDVDOVR D
VROLFLWRU WR KHOS SLFN JUDSHV  6DP VDLG WR 2ZHQ ³WKDW¶V JUHDW WKH PRUH WKH PHUULHU´
Amy and Owen spent the weekend picking grapes in the sun. They did a terrible job and all
of the grapes they picked needed to be thrown out.

At the end of the weekend, Owen was complaining bitterly about his blisters. Sam said,
³<RX¶OOEHRNPDWH/RRN,¶OOVHQG\RXDER[RI-DFN-in-a-Box Vintage 2008 Chardonnay
IRU\RXUHIIRUWV´ Amy, on the other hand, felt fabulous after her weekend away and said to
6DP ³\RX NQRZWKDW\RXRZH PHLI\RXJLYHP\VRPHJUDSHV,¶OOFDOOLWHYHQ´
Sam promptly gave Amy a bunch of grapes.

On 4 April 2011, the Jack-in-a-Box Vintage 2008 Chardonnay won WKH ³ZLQH RI WKH
FHQWXU\´DZDUG

6DP UXVKHG VWUDLJKW WR %ROHV 6XSHUPDUNHW WR EX\ WKHLU HQWLUH VWRFN RI ³-DFN-in-the-%R[´
Vintage 2008 Chardonnay for $1.95 per bottle. Boles Supermarket had heard about the
DZDUGDQGUHIXVHGWRVHOOWKH³-DFN-in-the-%R[´9LQWDJH&KDUGRQQD\WR6DPIRUthat
price. The manager told Sam the wine was now on sale for $1950 a bottle.

Amy, while eating dinner at her desk in her office, read about the award online, and
immediately range Sam to congratulate him and demand 12 bottles of the Jack-in-a-Box
Vintage 2008 Chardonnay for herself and 12 bottles for Owen in return for their grape-
SLFNLQJ ODERXU  :KHQ 6DP KHVLWDWHG $P\ EHFDPH FURVV DQG VDLG ³ But we had an
DJUHHPHQW$QGE\WKHZD\,ZDQWP\WRRRU,¶OOEULQJSURFHHGLQJV´

In mid April 2011, Kate and Plonk Australia Ltd each contacted Sam to confirm a time
when they could pick up the Jack-in-a-Box Vintage 2008 Chardonnay.

**********************

Instructions
Prepa re a memorandum of advice for Sam which advises him as to:
x his contractual obligations (if any) to each of Amy, Plon k Pty L td, K ate and O wen;
and
x %ROHV6XSHUPDUNHW¶VFRQWUDFWXDOREOLJDWLRQVLIDQ\WR6DP.

8
 Principles of Contract Law A T2 2011 (Assignment Instructions)

In writing the memorandum, students should be guided by the following points:

- For the purposes of this assignment, consideration of the legal issues is to be confined
to the material elements of contract formation as outlined in weeks 1 to 5 of the Unit &
Reading Guide (i.e. agreement, consideration, intention and certainty). However,
students should not assume that the factual problem raises contentious issues that
require the giving of lengthy advice in relation to all of these material elements. The
extent to which a particular material element of contract formation should be considered
and discussed on the given facts is an aspect of this assessment and, accordingly, is
entirely a matter to be determined by each student individually.
- If a student considers the existence of a particular matter important, and it is not clear
from the given hypothetical facts that the particular matter exists, the student should
identify and explain the importance of this matter and why it would impact on the
advice.

No further guidance will be given in relation to this assignment.

**********************