CONTRACT LAW (ESSENTIAL ELEMENTS)

Word Limit: Minimum 2,700 words – Maximum 3,000 words [includes footnotes and

bibliography]

Due Date: 02 Oct 2020.

QUESTION 1 [30 marks]

On 1 August, Nandini, who owns an electrical appliance store, Nandini Electro Pty Ltd, places

an advertisement in the newspaper which states:

“Huge Electronics Sale. All Computers 50% off.”

Visit our web site and see the large range of goods we carry.”

On 2 August, Angelo reads the advertisement and visits the web site. He sees a picture of a

Apple Model Number 5 Computer and clicks on the picture. Angelo is linked to a page which

has all the details on this computer. At the bottom of the page are words “Contact Us” and the

store’s email address.

That afternoon Angelo sends the following email to the store:

“What is the price of the Apple Model Number 5 computer? How many models of this

computer do you have in stock?

Within 1 hour, Nandini replies to Angelo by email, saying:

“We have five Apple Model Number 5 computers in stock. Our retail price is $2,000

and the sale is price is $1,000.”

Angelo telephones several other computer stores to check their prices and discovers Nandini’s

price is very cheap. Angelo decides to buy this computer from Nandini Electro Pty Ltd.

On 3 August Angelo telephones Nandini’s store and asks if this model computer is still on sale.

Nandini, who answers the phone, replies: “Yes, I can see one on the shelf right now, it is sale

priced at $1,000.”

Angelo says: “Great, I will buy it. My name is Angelo and I will come and pick it up

immediately.”

Nandini replies: “See you soon, Angelo.”

Angelo takes a taxi to Nandini’s store. When Angelo walks into the store, Angelo sees one the

advertised computer he wants on the display shelf with price tag saying “Sale Price $1,000.” 

2

Angelo says to Nandini: “I just telephoned you about buying this computer for $1,000. I am

here to pay for it and take it home.

Nandini replies: “I’m sorry, I have changed my mind. This is the last Apple Model Number 5

computer I have in stock and I have decided to give it to my brother, Raju, as a wedding present

for his wedding tomorrow.”

(a) Advise Angelo what legal rights he has under the common law of contract in

respect of the computer that he wished to purchase. Your answer must include

relevant legal principles and relevant case law to support your answer. [20

Marks];

and

(b) Assume the computer is still available for sale but Nandini says to Angelo she has

changed her mind about the price and that it is now for sale for $1, 800. Analyse

whether Nandini has acted in breach of a relevant statute law studied in this

course. Your answer must identify the relevant statute and section(s) together

with a discussion on its relevance to the given facts. [10 Marks]

Word Limit: Minimum 2,700 words – Maximum 3,000 words [includes footnotes and

bibliography]

 Requirements for a pass/good mark: 

1. A legal analysis of the question with reference to relevant legal principles (case law). 

2. Students are expected, as a minimum requirement, to reference the relevant chapters in the prescribed textbook and to draw supporting information from there in support of the answer. 

3. You are generally advised not to use the internet for resource materials, especially if you are unfamiliar with the topic (as it may be unnecessary and you run the real risk of drawing on irrelevant information or legal information from other countries that are irrelevant to Australian law). Your prescribed textbook, and the references therein, is more than adequate to answer the question.  3 

4. With those cautionary remarks in mind, only use internet sources that are relevant, accurate and reliable – remember, Wikipedia is not a reliable/credible source of academic information and is not to be trusted. 

5. Students are expected to footnote references to case law 1 and to provide a bibliography of books 2 and journal articles 3 consulted. DO NOT USE HAVARD SYSTEM (in text) referencing. 

6. Marks will be deducted if the answer does not meet the minimum word count – a word count must be indicated on the cover sheet. 

7. Use of margin of 1.5 and font of 12 (Times New Roman] – with answers on single side of each page. 8. A good answer will do the following (adopt the following structure) with respect to the problem-type question: 

(a) Identify the material (relevant) facts – and NOT simply repeat the question; 

(b) Identify the legal issue (or issues); 

(c) Identify the relevant case law; 

(d) Apply the legal principles and case law to the given facts; 

(e) Offer reasons for your conclusion (must be supported by legal authority) - a simple Yes or No answer with personal views is inadequate); 

(f) Be proof-read to eliminate spelling and grammatical errors; 

(g) Be referenced, with a bibliography; 

(h) Meet the minimum word length requirement; 

(i) Not simply copy/reproduce the textbook (answer must show own understanding); and 

(j) No plagiarism.