BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

National unit/s code :- BSBLEG522
National qualification code :- BSB60220
Task Number :- 1 of 3
Task Name :- Analysis of Nature of Contract Law
National unit/s title :- Apply legal principles in contract law matters
National qualification title :- Advanced Diploma of Conveyancing
RMIT Program code :- C6170
RMIT Course code :- JUST5761C
BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

Task instructions
Type of Product (tick which applies)
1. Project
2. Report
3. Portfolio
4. Case study

Summary and Purpose of Assessment
This is assessment task one (1) of three (3) that you must complete satisfactorily in order to be deemed competent for this unit.

The purpose of this assessment is to provide you with an opportunity to demonstrate your ability to apply the principles of contract law using two reflection activities.

Assessment Instructions
For this assessment task you are required to complete two reflections. You are encouraged to express your views in strong and interesting (even “colour ful”) language.

Upon completing Question 2, you will need to arrange a short meeting with your assessor to review your advice and discuss the key issues associated remedy/ remedies identified. During this meeting, you will need to seek feedback and record any retrospective analysis and comments provided.

Read the following scenario and complete the questions:
Question 1 – Scenario

You are the Judge and the relevant facts (a) to (h) below are not challenged in the hearing conducted before them:

(a) On 30 July 2017 Mr xxx had a discussion with Mr XXX at the XXX’s house which was to the following effect:

xxx : I hear you want to sell your house.
XXX : Yeah.
xxx : What have you got on it, what do you want for it?
XXX : $470,000.00.
xxx : What else do you want?
XXX : Well I want to sell the house as is and I want 3 months to vacate the property.
xxx : Ok do you want to put that info down on a bit of paper or some thing?
XXX : Yeah Ok no worries.
xxx : Well just jot down what you want.”

(b) Mr xxx and Mr XXX then signed a handwritten note which read:
“Rod XXX
10 Lawrence St Frankston
$470,000 3 months
home as is
x xxx

(c) At an unidentified time on 30 July 2017 Mr xxx told Mr XXX he would get a formal contract drawn.

(d) On 31 July 2017 Mrs xxx unexpectedly arrived at XXX house bringing with her a document she had created with a photocopier. At the top of the document was a copy of the note above that her husband and XXX had signed the day before and at the bottom of the document was a copy of the cheque which she delivered on this occasion to Mr XXX. The printed name of the drawer on the cheque was B & L xxx.

(e) Mr XXX said Mrs xxx said to him “here’s Burt’s [a reference to Mr xxx] cheque” and handed the cheque to him XXX said Okay Mrs xxx said Here is the receipt. Could you sign it, please?

(f) XXX accepted the cheque from Mrs xxx.

(g) They discussed the receipt for the deposit and Mrs xxx wrote in a space on the document between the copies of the note and the cheque the words received from xxx Constructions the sum of $6,000 as deposit on sale of [the XXX’s house]. (Six thousand dollars) 31.07.17”. XXX was able to read and understand that text. He signed on the line immediately before the date.

(h) Mr XXX banked the cheque. He subsequently attempted without success to repay the $6,000.

(i) On 4 September 2017 Mr xxx delivered an REIV/ LIV written standard form of Contract of Sale of Land to Mr XXX. Mr XXX gave evidence he was surprised when he looked at the contract because it did not have any of the special conditions that he had requested; specifically it did not provide him with three months to leave the property and did not specifically say that the house was to be as is. The form of Contract did however provide for settlement on 31 October 2017 which was three months after the date of the alleged agreement of 30 July 2017.

(j) On 27 September 2017 Mr XXX contacted Mr xxx by telephone. Whilst there was a dispute between Mr xxx and Mr XXX as to the precise contents of that conversation it was clear Mr Wynd wanted more money to sell the property on the basis that it was worth considerably more.

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

(k) Mr XXX refused to sign the Contract referred to in paragraph 2 above and Mr xxx then commenced court proceedings which sought an order for specific performance of a Contract Mr xxx claimed was reached on 30 July and or 31 July, 2017 between himself and Mr XXX.

You are required to complete the following:
Answer all of the following reflection Q1 A E using the information provided above. In each response students will need to:

1. Define the relevant legal principles that apply
2. Outline the methods and sources used to identify appropriate legal information (e.g. textbook internet research etc – suggested sources may be provided)
3. Complete any additional questions asked specific to each case

Q1 A. By way of introduction, identify the institutions and main features of contract law in Australian contract law (refer to class notes on introduction to contract law)

Q1 B. Students are to use plain English and in their own words to explain what an order for specific performance is. (Refer to Graw’s text; and a legal dictionary for assistance).

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

Q 1 C. The arguments advanced on behalf of Mr XXX were to the effect that the documents dated 30 and 31 July 2017 were (a) not a sufficient note or memorandum to satisfy the requirements of s. 126 Instruments Act 1958 and (b) for a sale of land the three essential elements for a contract are the parties, the subject matter and the price and these elements were not sufficiently clear.

Required: Set out in capacity as the Judge whether the argument submitted on behalf of Mr XXX should be accepted. Students in their response must distinguish between common law and relevant legislation. To do this, students are to give reasons by setting out the key elements including reference to s.126 Instruments Act 1958 and case authority (see chapter 2 of Graw and the Answers for the Class Notes on Nature of a Contract. Also Graw’s chapter on Acceptance where he
discusses uncertainty and the Class notes on Acceptance / uncertainty may also help).

Q1 D. It was further argued on behalf of Mr XXX the parties did not intend to make a CONCLUDED BARGAIN unless or until a formal contract was drawn up as per Masters v Cameron. Accordingly that when the formal Contract was submitted it was different from the oral / written agreement and he appropriately refused to sign it.

Required: Students in their Judgment are to advise if it is necessary to address this argument? Set out their opinion in 15-20 lines or more on this argument including (1) with reference to the expression CONCLUDED BARGAIN, outline the aims and rationale behind entering binding contracts and (2) which category (if any) of the 3 now 4 categories of Masters v Cameron subject to contract applies. Give your reasoning and support it with case law. [Assistance for response is in Graw chapter 4 and the Class Notes on Acceptance.]

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

Q1 E. Counsel the lawyers arguing the case appearing before students said: What mattered was what Mr and Mrs xxx and Mr XXX said and did, rather than what they thought was the effect of what was said and done. You are preparing to
write your Judgment and you need to set out what is the legal test for intention to enter into a binding contract)

Required: Please set out (a) the test; (b) a brief explanation of the test in your own words and (c) the full citation of case authority for the test just one case but more if you are so inclined. See Graw’s text or class notes on Intention to be bound and Offer.

Question 2 – Facts
Lucille Price is the registered proprietor of a house property which became subject to a mortgage to East pac Bank. The mortgage was given by Lucille as security for a loan made by the Eastpac to Lucille’s husband, James Price, who was the sole proprietor of Price Consulting Services.

The evidence is in November 2016 Lucille, an occupational therapist had confidence in her husband who was continually in financial trouble. James Price was in debt for car payments, a Visa credit card debt and an Eastpac personal loan. He asked his wife to guarantee his debt with East pac and to put up the title to the home (registered in her name only), as security for debts totalling $180,000. Lucille tried to ask her husband James questions about the East pac loan but he put her off by saying Don’t you trust me and even if I did give you details you would not understand as you are stupid with money”.

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

East pac Bank gave the mortgage and guarantee documents to the husband James and asked him to arrange his wife Lucille to sign the documents before an independent witness and return them to the bank. No representative of East pac was in attendance when she signed.

Lucille was not given any chance to read the documents her husband presented to her for her signature and her attempts to ask questions only made her husband James angrier. James arranged for a neighbour Molly to come into their home to witness the signing of the East pac mortgage and guarantee documents including a Certificate that Lucille elected not to obtain independent legal and/or
financial advice in relation to East pac’s mortgage and guarantee. Molly noticed Lucille had tears running down his cheeks while Lucille was signing and she was very quiet.

Lucille understood her husband James debts were for car payments credit card payments and a business debt, but she did not know the actual amounts owing nor that her husband James was in arrears of his car lease payments or credit card debts. Lucille did not receive and therefore could not read the East pac Bank Guarantor’s booklet What it Means to be a Guarantor. Lucille did not know that she was signing a mortgage as such she just knew it as loan documents or a Better Business Loan she thought that she was guaranteeing her husband James’ loan, but not giving a mortgage over her title to the home.

Lucille and James separated on 30 December 2017 and Lucille wishes to try and set aside the East pac mortgage and guarantee.

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

Students are required to complete the following:
Q2A. Provide a written advice to Lucille Price as to whether she could successfully argue under contract law any bases (there is more than one and at least two need to be provided) to set aside the East pac mortgage and guarantee. Include organisational procedures. Quote cases to support views.

Please write short paragraphs with one point per paragraph.

You can seek help by reading the Class notes on Duress Undue Influence Married Woman’s Equity and Unconscion ability (and see also chapter 13 Graw). Further the Additional Materials on Canvas will be of great assistance.

ORAL Component
Q2 B. You are to arrange a short meeting with the assessor to review your analysis and in particular the key issues and associated remedy/remedies you identified. Seek feedback and record any retrospective analysis and comments below. You
should be in a position to ask at least two (2) questions in relation to your assessment analysis to date

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

[TO BE DONE IN CLASS TIME – in PERSON OR ON COLLABORATE]- Note this part the assessment is for the purpose of assessment of student’s oral communication skills.]

You will be provided some class time to work on this assessment however it is expected that the majority of this assessment will be completed outside of class.

You will be assessed against the criteria listed in the marking guide in Section B of this document. To achieve a satisfactory result you will need to address all criteria satisfactorily.

BSBLEG522 Analysis of Nature of Contract Law Assessment Australia

Conditions for assessment

1. This is an individual task. You must not copy the work of others. For more information regarding Academic Integrity please refer to RMIT Academic Integrity Guidelines. If in any doubt about what kind of support is allowable then you need to seek clarification from your assessor.  
2. Tasks are completed both outside and inside of class and submitted on or before the specified due date as stated in Canvas. 
3. Your work will receive a result of Satisfactory or Not Satisfactory. You must meet all the criteria listed in marking guide to be deemed to be satisfactory for this assessment. If you are deemed not satisfactory the feedback from your assessor as noted in marking guide will indicate how you need to improve your work before re-submitting it. 
4. You are entitled to a second re submission of this assessment task if the first submission was not satisfactory. 
5. In certain circumstances students may be eligible for an assessment adjustment (e.g. a disability or long-term medical or mental health condition; an unavoidable employment, family, cultural, religious or elite sporting commitment known in
advance other unexpected circumstance outside their control). 
6. If you are unable to meet the submission deadline as stated in Canvas then you need to consult with your assessor as soon as possible preferably at least one (1) week prior to the assessment submission due date. Information found on the web
pages below will also help inform you of your rights and responsibilities.