The ‘common law system’ has 2 meanings. Which of the following is correct?

(a)    This statement is incorrect because the common law system has only 1 meaning.

(b)    The common law system is both a system of law in which legal principles are developed by judges through case law; and a legal system whose mode for solving disputes occurs within the court system and is adversarial.

(2)    Australian law is based on:

(a)    the civil law system of Germany and France;

(b)    common sense;

(c)     the common law system which Australia inherited from the United Kingdom when it was first settled by English colonists;

(d)    None of the above.

(e)    The common law system was developed by the indigenous people of Australia and by Parliament.

(f)      All of the above.

(3)    The Australian Constitution, contained in s. 9 of the Commonwealth of Australia Constitution Act 1900 (UK), is:

(a)    a very long document;

(b)    based on the Bill of Rights of the United States of America;

(c)     a broad charter of principles that sets out how government institutions work including the operation and framework of Parliament, the federal courts, the functions of the Commonwealth Government and relations between the Commonwealth and the states.

(d)    All of the above.

(4)    Which of the following are primary sources of law in Australia?

(a)    case law and professional legal journals;

(b)    statutes and records of parliamentary debates;

(c)     statutes and case law;

(d)    newspaper articles;

(e)    None of the above.

(5)    In order for a Bill to become legislation it must:

(a)    be approved by the High Court of Australia;

(b)    pass through both the House of Representatives and the Senate and, if approved, it merges as an Act which becomes law once it receives Royal Assent by the Governor-General;

(c)     be voted on by the Australian people in an election;

(d)    All of the above.

(6)    Section 15AA of the Acts Interpretation Act 1901 (Cth) directs those who are interpreting legislation to:

(a)    rely on their own views of what the legislation might mean;

(b)    adopt a purposive approach by adopting the interpretation that would best achieve the purpose or object of the relevant Act;

(c)     adopt a literal approach to interpreting the legislation, regardless of whether or not that interpretation makes sense;

(d)    None of the above.

(7)    The Australian common law system is supported by the doctrine of precedent which means:

(a)    the ratio decidendi of a previous case will be used as an authority for deciding a later case involving a similar set of facts;

(b)    the obiter dicta of a judge in a case becomes the authority for all later cases regardless of the facts;

(c)     the Constitution is always referred to by judges in deciding cases.

(d)    None of the above.

(8)    A court is:

(a)    able to amend legislation without the need to refer to Parliament;

(b)    a reference only to the High Court of Australia;

(c)     a tribunal that exercises judicial power and whose judgement is enforceable;

(d)    a tribunal that exercises judicial power but whose decisions are never enforceable.

(9)    A company is:

(a)    a legal person with the legal capacity to sue and be sued in its own name;

(b)    a legal person with the capacity to make its own contracts;

(c)     able to incur its own debts and liabilities;

(d)    a legal person capable of owning property that is not the property of its shareholders;

(e)    All of the above.

(10)The common law system is adversarial in nature which means:

(a)    It involves the judicial officer directing the parties involved in the case on how best to present facts and evidence to the Court;

(b)    it is combative and involves a judicial officer who hears arguments from the parties involved in the case and makes a decision about the case based on the facts and evidence presented in Court;

(c)     the parties in dispute work together to present their facts and evidence to the Court before deciding on a mutually convenient solution;

(d)    All of the above.

(11)The advantages of being a company are:

(a)    that it has perpetual succession and can continue to exist irrespective of the death or bankruptcy of its owners;

(b)    shareholders can easily transfer their interests (i.e. shares) in the company to other parties;

(c)     its shareholders have limited liability;

(d)    the debts of the company are not the debts of its shareholders minimizing the risk to their private assets;

(e)    All of the above.

(12)Which of the following best describes the idea of ‘freedom of contract’?

(a)    Parties are free to agree on the terms of the contract.

(b)    Contractual obligations between the parties arise through consent.

(c)     Parties are not obligated to enter into a contract.

(d)    All of the above options give are correct. (13) An ‘offer’ is defined as:

(a)    a statement made by the offeror that is capable of giving rise to a contract on acceptance by the offeree;

(b)    a mere representation made by one party in order to induce another party into n agreement;

(c)     a statement made by the offeror that which immediately binds the offeree into a contract regardless of whether or not they have accepted the terms;

(d)    None of the above.

(14)  Which of the following statements is correct with respect to the decision of the Court in Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256:

(a)    statements that are exaggerations about the characteristics of a product are ‘mere puff’ and qualify as an ‘offer’ in contract law;

(b)    statements that are exaggerations about the characteristics of a product or service are ‘mere puff’ and do not qualify as an ‘offer’ in contract law;

(c)     statements that are exaggerations about the characteristics of a service are ‘mere puff’ and qualify as an ‘offer’ in contract law;

(d)    All of the above.

(15)  Which of the following statements is correct with respect to an ‘invitation to treat’?

(a)    an invitation to treat is just an expression of interest in doing business;

(b)    an invitation to treat carries no legal obligation;

(c)     a chocolate bar displayed on a supermarket shelf is an example of an ‘invitation to treat’:

(d)    All of the above options are correct.

(16)  Is the following statement TRUE or FALSE? An offer will cease to be effective if it is revoked by the offeror or if it lapses after a certain period of time.

(a)    TRUE

(b)    FALSE

(17)  Is the following statement TRUE or FALSE? A contract will only be binding if, amongst other things, it results from the acceptance of an offer while that offer remains operative and in existence.

(a)    TRUE

(b)    FALSE

(18)  Is the following statement TRUE or FALSE? An offer may be revoked at anytime before the offer is accepted and brings the offer to an end.

(a)    TRUE

(b)    FALSE

(19)  Is the following statement TRUE or FALSE? An offeree may either accept or reject an offer, and if the offeree accepts the offer absolutely and with no qualifications, the offer will form a contract from the moment of acceptance.
(a)    TRUE
(b)    FALSE

(20)  An agreement that is expressed to be ‘subject to contract’ is:

(a)    a form of conditional acceptance that will not be binding unless the offeror agrees to the condition: the condition must be fulfilled before a legally binding contract arises;

(b)    an immediately binding contract on the offeree regardless of whether or not there are conditions which must be satisfied;

(c)     not a very good way of doing business;

(d)    None of the above.

(21)  Is the following statement TRUE or FALSE? Only the persons to whom an offer is addressed can accept it.

(a)    TRUE

(b)    FALSE

(22)  Is the following statement TRUE or FALSE? If the offeror specifies the manner in which the offer must be accepted, then only acceptance in that manner will be a valid acceptance capable of forming a valid contract.
(a)    TRUE

(b)    FALSE

(23)  The decision of the Court in Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 was authority for the rule that:

(a)    the Court can infer implied acceptance between an offeror and an offeree based on their conduct towards each other;

(b)    the Court will always infer acceptance between the parties regardless of how they have behaved towards one another;

(c)     all cases must be referred to the Privy Council in the United Kingdom by all Australian Courts;

(d)    All of the above.

(24)  A contract is formed when an offer is accepted and acceptance is complete:

(a)    if, and only if, it is communicated to the offeror;

(b)    regardless of whether or not the offeror accepts the offer;

(c)     regardless of whether or not the offeror is notified of the offer;

(d)    None of the above.

(25)  Is the following statement TRUE or FALSE? A contract is made at the time and place acceptance is effective, that is, when and where it is communicated to the offeror.

(26)  Under the Electronic Transactions Act 1999 (Cth), the basic rule contained in the Act provides that:

(a)    a transaction must be communicated in writing through a law firm in order for it to be valid;

(b)    a transaction is invalid unless the parties speak to one another in person;

(c)     a transaction is not invalid because it took place by electronic communication;

(d)    All of the above.

(27)  Is the following statement TRUE or FALSE? The parties to an agreement must demonstrate they had an express or implied intention to create legally binding obligations between one another in order for a legally binding contract to be recognised at law.

(a)    TRUE

(b)    FALSE

(28)  Is the following statement TRUE or FALSE? If parties to an agreement are in a commercial relationship, the presumption is that they intend to create a legally binding contract by their agreement.

(a)    TRUE

(b)    FALSE

(29)   Consideration is an essential requirement for an enforceable contract at law and is defined as:

(a)    the price paid for a promise;

(b)    how long the parties to the contract spend thinking about the offer;

(c)     how long the written contract is governing the agreement between the parties;

(d)    All of the above.

(30)  Is the following statement TRUE or FALSE? ‘Primary liability’ refers to the liability imposed on persons (individuals or corporations) for engaging in the conduct that is prohibited by the law.

(a)    TRUE

(b)    FALSE

(31)  Is the following statement TRUE or FALSE? A contract is only enforceable if the consideration is either executory or executed, not if the consideration for the giving of the promise already past.

(a)    TRUE

(b)    FALSE

(32)  Is the following statement TRUE or FALSE? The courts will refuse to enforce a contract on the grounds that the consideration was not equal in value to the act or promise of the other party.

(33)   The doctrine of equitable estoppel:

(a)    is a legal principle which prevents a person from going back on their word in certain circumstances and allows a promise to be enforced;

(b)    is available where a promise has relied on a promise, changed their position and would suffer some detriment if the promisor went back on their promise;

(c)     is applied by the court who prohibits the promisor from acting in an unconscionable manner by ordering them to honour their promise;

(d)    None of the above.

(34)  Is the following statement TRUE or FALSE? A contract may not be valid and enforceable if one or both of the parties lacks the necessary legal capacity.

(a)    TRUE

(b)    FALSE

(35)  Under s.45AA of the Competition and Consumer Act 2010 (Cth) a company commits an offence by engaging in cartel conduct between parties which would otherwise be in competition with each other, which includes:

(a)    price-fixing;

(b)    restricting outputs in the production and/or supply chain;

(c)     allocating customers, suppliers or territories;

(d)    All of the above.

(36)   In order for an offer to be formally revoked at law:

(a)    the revocation must be communicated clearly to the offeree at any time before it is accepted in order for the offer to be terminated;

(b)    the offeror can revoke it at any time before or after they accept it;

(c)     the offeror must sign a disclaimer agreeing to be liable on an ongoing basis even after the offer is revoked.

(d)    None of the above.

(37)   The doctrine of privity of contract provides that:

(a)    a contract only binds those persons who are parties, or privy, to the contract and persons who are not parties to the contract cannot have rights imposed or enforceable benefits conferred on them;

(b)    all contracts bind the whole world to the terms and conditions contained in the contract;

(c)     a contract must be approved by the High Court of Australia in order for it to be enforceable;

(d)    All of the above.

(38)  Is the following statement TRUE or FALSE? A counter-offer is considered to be a rejection of the original offer: Hyde v Wrench (1840) 3 Beav 334.

(a)    TRUE

(b)    FALSE

(39)  Is the following statement TRUE or FALSE? In business agreements, ‘Letters of Comfort’ are generally not legally binding, unless there is evidence that the parties intended to create a legal relationship with binding legal promises.
(a)    TRUE
(b)    FALSE
(40)  Is the following statement TRUE or FALSE? Consideration, an essential element of a legally binding contract, is the price paid by the promisee for the promisor’s promise and can take the form of either a benefit to the promisor or a detriment to the promisee incurred at the promisor’s request.
(a)    TRUE

(b)    FALSE

THE NEXT SECTION IS PART B WHICH IS ON THE FOLLOWING PAGE

Part B

Short Answer Questions

This section contains 4 short answer questions. You must write an answer for ALL the questions.

1.                   Explain the way in which the 6 rules concerning consideration in contracts operate. Provide caselaw examples for each rule in support of your answer.

Answer: In this it has been mentioned that consideration within the contract law as mainly be alter one of the values with for another one. It has also been said that if any of the element from the six and they should have to be present for the contract to be enforceable. As well as consideration should both be lawfully specific and has been bargained by the receiving party. Furthermore, it has also been stated that there were some of the conditions has been made which is necessary to meet.

2.       Explain how the doctrine of promissory estoppel operates in contract law disputes. Discuss the decision of the court in the following cases in support of your answer:

a.       Central London Property Trust v High Trees House Ltd [1947] KB 130; and

Answer: As we all know that the above mention statement is one of the popular law decisions which has been made in the English contract in the high court. In this it has been observed that a promise had been made for the creation of legal relationships to the information of the individual for the development of promise and had to be acted only on one entity whom it had been made. moreover, it has been taken as the mistake to think that consideration should herself transference to develop the binding information.

b.       Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387.

3.       What is the parol evidence rule? Are there exceptions to the rule? If yes, explain what some of the exceptions are. Support your answer with relevant caselaw examples.

Answer: this rule has been defined as the preserves of originality and integrity of written document. It has been firstly be developed in the case of Goss v Lord (1833)  and had been succinctly mentioned by Innes J in 1891. This rule mainly forbids the groups from amending the meaning of document which is in written form. This rule has also been presented in for many reasons. The existence of this rule is to secure the terms which has been included in the contract.

4.    Are express terms in unsigned documents (e.g. tickets, receipts etc.) legally binding? Explain your answer with reference to the at least 2 of the following cases:

a.       Causer v Browne [1952] VLR 1

b.       Oceanic Sun Line Special Shipping Co Inc v Fay (1988) 165 CLR 197

c.       Olley v Marlborough Court Ltd [1949] 1KB 532

d.       Thornton v Shoe Lane Parking Ltd [1971] 2QB 163

e.       Balmain New Ferry Co v Robertson (1906) 4 CLR 379

Answer:  an exclusion clause has been explained as in the form which has been presented within the contract which pursues to eliminate or restricted the responsibility of one of their parties. As well as the main of this clause that it will be used in general of the contract and involve clauses to describe the obligations.  In the above mention case the defendant of the case has been based on the exclusion clause and the high court of the city has been held that any kind of material is not the part of contract.  

THE NEXT SECTION IS PART C WHICH IS ON THE FOLLOWING PAGE