Running head: LAW AND INTERNATIONAL LAW 1

Case Law of Business Association

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LAW AND INTERNATIONAL LAW 2
Case Law of Business Association

The Corporations Act 2001 (Cth) is an Australian Commonwealth law that governs laws that

address business entities in Australia at the intergovernmental and federal levels. It works mainly with

organizations, in spite of the fact that it additionally manages different organizations, for example,

associations and managed investment plans. The main means of a breach of a contract is to enforce the

contract or replace the damage caused to innocent parties. This is consistent with the idea that contracts

are a negotiation between the parties. This paper will answer two questions relating to the corporate

law. The paper will utilize the IRAC technique (Issue, Rule, Application, and Conclusion) to answer

both questions.

Question 1

Issue

In the case of motorcycles Pty Ltd and John a proprietor, there is the sheer presence of an issue

on the agreement between the two parties. Tim consented to offer $ 5000 to buy the motorcycle; hence

both company and the buyer consented to the agreement to acquire the motorcycle. Afterward,

Michelle, who inscribed the agreement, was in need of leaving the agreement and thought she had paid

excessively for the motorcycle. Consequently, Michelle could be bridging the contract in the case.

Law

In situations where an infringement of the statutes of an organization is additionally an

infringement of the law on constrained obligation organizations such as violation of provisions

concerning the change of class rights article 1324 of the companies act guarantees in court the power to

take prevent tampering or claim damages.

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Each Australian jurisdiction has a Fairtrade Regulatory Authority that administers and applies

the Australian Consumer Act (ACL). In Queensland, the Office of Fair Trade (OFT) helps companies

understand their obligations under the LCA and other industry-specific laws.

The Australian Consumer Law (ACL) requires certain products to meet pre-sale safety

requirements for sale, and product information must be provided with the product being sold. As

evident in the Scammell and Nephew Ltd V HC&JG Ouston [1941], buyers have the privilege to

expect the items they purchase to be fine for utilization. 1 As an organization, there is a need for a

lawful commitment to guarantee that the items supplied are free of defects that could be harmful to

consumers. Companies should not assume that imported products comply with Australian product

safety laws even if they have been approved by customs.

As evident in AGC Ltd v McWhirter (1977), the purpose of the ACL is to protect consumers

and ensure fair trade in Australia.2 According to the ACL, consumers have the same protection and

companies have the same obligations and responsibilities across Australia. Some of the consumer

protection provisions contained in the ACL are reflected in the Services Act and the Atlantic Financial

Services and Securities Commission (CTH) 2001 (ASIC Act).

The Fair Trade helps companies provide information on reimbursement procedures and ongoing

market research to ensure that the proposed products meet the required standards. In case of problems

with a product, Fair Trading has the power to protect the public against dangerous products. This

includes the disposal of hazardous products and the publication of public notices.

1 In Scammell and Nephew Ltd V HC&JG Ouston [1941] 1 AC 251 (Austl.), The parties entered an agreement

whereby Scammell were to supply a van for £286 on HP terms over 2 years and Ouston was to trade in his old van

for £100. There was then some disagreement and Scammel refused to supply the van.

2 As per AGC (Advances) Ltd v McWhirter (1977) 1 BLR 9454 (Austl.), Bidders at auctions make offers that may

or may not be accepted. Withdrawal of a reserve does not change this - it does not constitute a definite offer to sell

to the highest bidder; an auction is merely an invitation to treat.

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As evident in the Balfour v Balfour (1919), the laws of the sale of properties in each state and

territory of Australia imply certain conditions in the contracts.3 These conditions can and are expressly

excluded. There are also consumer warranties under the Australian Consumer Code, which in some

cases applies to a business relationship. It is assumed that a person acquires goods or services as

consumers and the protection of consumers is guaranteed if the goods are of a type normally acquired

for personal or domestic purposes, whatever the price (consumer goods) or regardless of the type of

goods, the amount paid or payable for goods or services does not exceed $ 40,000.

When selling items to Australian clients, there is a need to meet Australian Consumer Products

(ACL) product safety requirements. If a company is a supplier or manufacturer, there is need to comply

with Australia's safety rules and only the products that are safe in the market. The binding rules are

legal and there are penalties and consequences for the sale of non-compliant products.

The Australian Commission for Competition and Consumer Protection (ACCC) establishes

binding safety rules and regulations for dangerous and prohibited items that have appeared in the

Consumer Protection Act (CEC) 2010. Fairtrade workplaces additionally assume an essential part of

the principles of each state and domain.

Item testing is a decent method to affirm the security of an item and conform to the law. For a

few items, there is need to conduct tests to ensure that the product meets the required safety standards.

The corporate board ensures the legitimacy of practices and trade. Working for associations of all sizes,

these specialists must understand the laws and instructions to allow their clients and organizations to

work within the limits of the law.

Companies that demonstrate ethical and legal conduct have built solid notoriety and long-haul

client reliability. Legitimate and moral direct additionally shields a business from lawful dangers. The

3 According to Balfour v Balfour. (1919) 2 KB 571 (Austl.), there is a rebuttable presumption against an intention to

create a legally enforceable agreement when the agreement is domestic in nature.

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outcomes of unjustifiable or unlawful exchange can demolish a business. Australian Contenders and

Commission Consumers (ACCC) may punish, or notwithstanding neighboring organizations that

damage the reasonable states of exchange and deals put forward in the Australian Consumer Act.

Application

On account of John and Motorbikes Pty Ltd, Michelle, part of the agreement, needs to end the

agreement. She is among the proprietors of Motorbikes Pty Ltd, and the chief of the organization is

bound to both the agreement and the organization. The certainty that the two proprietors of the

organization sign the agreement purchasing Johns’ Motorcycle implies that the organization is bound

by the agreement.

If the groups wish to end the agreement or change the agreement, they must accept the

resolution or change. The right of extinction of a contract is based on the following three cases:

• Waiver or refusal of the contract by one of the parties

• A genuine breach of an insignificant condition

• An infringement of a significant condition

In reflection to the situation, if the privilege to end the agreement happens, John will be ought

to either to declare to the agreement and declaration remuneration due to breach or he might end the

agreement and request for the total loss due to bargain violation. Motorbikes Pty Ltd would justify

dismissal for reasons that are entitled to do so, and whether or not they knew the contract signing time.

According to the Frumar v. Guilfoyle Developments Pty Limited (2014) case, if the parties intended to

be connected instantly to a fast party time contract, they should be bounded as soon as possible. 4 The

issue of demonstrating verbal understanding is additionally shown in this situation.

Conclusion

4 Frumar v Guilfoyle Developments Pty Limited. (2014). NSWCA 225 (Austl.), evident that an essential factor in
deciding whether the contracting parties wish to be directly related to a contractual amendment (Variant A) is that one of the
parties requires an immediate agreement with another variant.
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As per the investigation, Michelle, as a proprietor of the organization, affirmed to the

agreement. That implied Michelle had acknowledged the terms of the agreement. Therefore Michelle

was quitting to acquire the Motorbikes Pty Ltd did not involve the agreement hence against the

corporate laws.

Question 2

Issue

The cake shop is owned by George, where Sylvia and Gerard want to purchase. They

additionally enrolled the organization as Cakes Pty Ltd. In the course of marking the contract the stamp

that is stamped on the organization, which implies that George has an agreement with Cakes Pty Ltd.

Gerard and Sylvia witness the marking of the agreement. George needed the cake shop back hence an

issue. However, he had affirmed the agreement to offer it. George breaches the agreement.5

Law

Buying a consolidated company or selling an existing company is a complex undertaking that

involves many considerations. Failure to comply with the various financial and legal issues and

procedures involved in such transactions can cause serious problems. The details of a transaction must

be documented for the sale or purchase of a business that identifies the purpose of the transaction, the

consideration in question, and the parties' anticipated obligations.

There are many factors to keep in mind when selling or purchasing a business, one of the most

important aspects is to know the cost to sell the business. Selling business can be a difficult task, so it is

important to carry it under state laws. The legal requirement is important to ensure that the new

business runs smoothly and understanding what type of business being bought. Legal due diligence

helps the company comply with the law and helps reduce the risk of future liability. Buying a new

business may cause a regulatory problem, possibly in the form of licenses. The ACCC may also impose
5 In Crown v Clarke. (1927). 40 CLR 227 (Austl.), the High Court held that Clarke could not claim the reward
because it was necessary to act in "reliance on" an offer in order to accept it, and therefore create a contract.
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certain conditions that must be taken into account, especially if the company is a large company and

has concerns about competition. When buying a business, there are five basic types of contracts: (1)

Letter of Intent, (2) Terms of Use, (3) Agreement, (4) Confidentiality Agreement and (5) Commercial

Contract Assets or Share Sale Agreement.

Application

George penned the agreement to sell the cake shop and ends up being tied up by the corporate

law acquisition. There is no evidence that an excessive belief has occurred to force false statements,

threats or coercion on the part of Gerard and Sylvia to constraint George to sign the agreement. There is

no exhibit of error in the fundamental premise that the termination of contract bases. Therefore, it is

assumed that George comprehended the agreement hence being bound by it.

As evidenced by the ABN AMRO v. Bathurst Regional Council (2014) case, the bank had a

budgetary item with particular qualities of Local Government Financial Services Pty Ltd. The judicial

system examined whether it should be implicit in the Law Commission is 12ED of Australian

Securities and Investments (Federal Law) 2001. ABN AMRO requires a classification with a security

degree according to an AAA rating. 6

Conclusion

In short, once George consented to sale his cake shop without any influence and signed the

agreement, he is bound by the agreement, and therefore liable. By marking the agreement, George

demonstrates that he has perused and comprehended the terms of the agreement.

6 As per ABN AMRO Bank NV v Bathurst Regional Council - [2014] FCAFC 65 (Austl.), the ruling could affect
similar disputes around the world and in this context regulate financial markets around the world.
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