Quiz 1, Chapters 1-4
No. Question
01 A qualified acceptance may also be known as
a/an:
02 In Crown Melbourne Ltd v Cosmopolitan
Hotel (Vic) Pty Ltd [2016] HCA 26 why did
the High Court disagree with the decision of
the Victorian Court of Appeal in finding there
was no case for promissory estoppel
03 (Doctrine of precedent) With respect to a
case being decided under the appellate
jurisdiction of the County Court of Victoria, a
decision of the appellate division of the
District Court of New South Wales on the
same Commonwealth legislation is:
04 In which of the following types of agreements
is there a presumption that parties intend to be
legally bound?
05 (Reception of English law in Australia)
Which Latin phrase explained the rationale for
applying English laws to the new Colony of
New South Wales?
06 The postal acceptance rule:
07 In Elizabeth City Centre Pty Ltd v Corralyn
Pty Ltd (1995) 63 SASR 235, the option to
exercise renewal of the lease:
08 Which of the following statements about
contracts is true?
Answer
Counteroffer.
There was a need for certainty as to what the
parties had agreed on at the end of the
negotiations to find a claim for estoppel.
&
The plaintiff could not establish that the
statement that it would be “looked after at
renewal time” was capable of conveying to a
reasonable person that it was a genuine offer
of a further lease.
Persuasive.
Partnership between husband and wife.
terra nullius.
Can be impliedly excluded by the offeror
specifying actual receipt of acceptance.
Negated the postal rule because the
notification was not sent by certified mail as
required.
It is a statutory requirement throughout
Australia that some contracts must be in
writing and others must be evidenced in
 writing.

09 (Sources of law) Sources of law in Australia Repealed statutes.

do not include:

10 Which of the following is not a way in which Revocation after acceptance has been mailed
an offer can be terminated? where the postal rule applies.

11 (Court hierarchy) Local or Magistrates Are the lowest courts in the state hierarchy.
Courts:

12 Which of the following is most likely to be “I’ll pay you $3,000 if you complete a total
considered an offer? rewrite of chapters 12 and 15 of this
textbook.”

13 The Executive Power The Executive power is The Queen, the Prime Minister and the
administered by: Cabinet.

14 (Ratio decidendi*) The ratio decidendi of a Is the reason given for deciding the case.
case:

15 Contracts voidable by a minor do not include: Those not binding unless ratified by the
minor during their minority.

16 (Interpretation) Which of the following is The purposive approach.

not correct? With respect to interpretation, the
main approach used by courts is:

17 (Federal system) Which of the following Australia is a federal system, with two legal
statements is correct? systems for each citizen.

18 (Section 15AA of the Acts Interpretation Provides that the purpose of the statute or its
Act) Section 15AA of the Acts Interpretation object should be the preferred method of
Act 1901 (Cth) determining the statute’s meaning.

19 In Ashton v Pratt [2015] NSWCA 12 what The verbal language of the agreement greatly
was the main reason for the court deciding lacked detail from either party and did not
that there was no intention to create a legally indicate definite obligations.
binding contract?

20 (The legislature) Exclusive powers are those Can be exercised only by the Commonwealth.
that:

21 Peter verbally offers Tara his car for $5000. It has lapsed because of Tara’s counteroffer.
Tara refuses saying it’s not worth that, but she
will pay $4000. What is the status of Peter’s
 first offer?

22 (Separation of powers) Which of the The executive is the body that administers the
following statements about separation of law.
powers in Australia is correct?

23 (Sources of law) The two main types of law Statute law and judge-made law.
in Australia are:

24 Which of the following is not a class of Women.

persons regarded by the law as wholly or
partly incapable of entering into legally
binding contracts?

25 If one party has threatened another party to Real/genuine consent.

enter into a contract, the element that is
missing is:

26 (Reporting obligations) What is a binding A decision of a court that binds judges in a

precedent? lower court in the same court hierarchy.

27 (Substantive and procedural law) Refers to actual rights under the law.
Substantive law:

28 (Business law) Which of the following no Trade Practices Act 1974 (Cth).
longer regulates business or commercial law?

29 (The rule of law) Which of the following Due process.

concepts is closely related to the rule of law?

30 (Civil and criminal law) Which of the The document filed by the defendant is called
following is not correct with respect to civil a writ.
law?

31 (Native Title) Native Title was first Mabo v State of Queensland (No 2) (1992)
recognised in which of the following cases? 175 CLR 1.

32 Sally puts up a sign stating that she has lost Chang will not get the reward because he
her dogs and will pay a reward of $100 for returned the dog knowing it was Sally’s, but
their return to her within three days. Which of was unaware of her offer of a reward.
the following statements is correct?

33 Farah agreed to take care of an elderly woman Is likely to apply the doctrine of part
Marge and in return was provided with a performance.
house to live in that was promised by Marge
to be Farah’s after she died. Farah cared for
 the woman for 23 years, but upon Marge’s
death Farah discovered that their oral
agreement was never put into writing. The
woman’s son moved into the house and Farah
made a claim to the house. The court:

34 With respect to the contractual capacity of All the legal capacity of a natural person
corporations, s 124 of the Corporations Act: (together with some additional powers that
2001 (Cth) gives them: can only be exercised by a corporation).

35 Jack was subpoenaed to give evidence on No - Jack’s public duty is to give evidence in
Rods behalf. Jack claimed Rod promised him response to that subpoena.
$2000 to give evidence. Would Jack recover
that money?

36 Simone advertises a car for $4,000. John Simone does not have to hold the offer open
responds to the advertisement and asks as no consideration was given.
whether Simone will take $3,000. Simone
says “no”, but that she will hold the offer open
for a week. The next day she sells it to
Samantha. Which of the following statements
is:

37 Which of the following statements about the Where the government makes a policy
contractual obligations of government policy promise and a citizen relies on it the court
proposals is incorrect? will always regard that policy commitment as
a binding contractual obligation.

38 (Extrinsic Materials) Which of the following The internet.

is NOT an example of an extrinsic source of
material?

39 (Hierarchy of courts) Which of the following High court.

is higher than the Federal Court of Australia in
the federal court system?

40 The Age of Majority Act 1977 (Vic) reduced 18.

the age for contractual capacity of a minor

41 (Constitution) Section 51 Commonwealth Concurrent powers.

Constitution grants what type of law making
power to the Commonwealth Parliament?

42 Which of the following circumstances are Mistake & Duress and undue influence.
likely to affect the consent of one or both
 parties to a contract:

43 (Section 51 powers) Which of the following Education.

is not an area that the Commonwealth
Parliament has power to legislate on under s
51 of the Commonwealth Constitution?

44 (Court hierarchy) The highest court in The High Court of Australia.

Australia is:

45 Which of the following is not one of Brennan The promisor knew or was reckless as to
J’s six criteria for estoppel from Waltons whether the promisee intended to
Stores (Interstate) Ltd v Maher (1988) 164 act in that.
CLR 387?

46 (Civil law and criminal law) Where an act is The State may prosecute the offender for the
both a crime and a tort: crime, and the victim may bring a civil
action.

47 (Common law) Which one of the following Common law is judge made law.
statements about common law is correct?

48 (Interpretation – extrinsic materials) In Are allowed to be referred to by a court.

interpretation, extrinsic materials:

49 Simon and Stella, both of full legal capacity, No, because Simon and Stella did not intend
agree to go on a date. Stella is to pay for the the agreement to create legally enforceable
dinner, but she is running late and does not obligations.
meet Simon at all. Simon is embarrassed and
angry and calls Stella the next day to threaten
to sue her for his taxi fares and dinner
expenses. Will Simon succeed in his
claims?

50 Which of the following statements about Consideration need not be adequate.

consideration is correct?

51 Andy promises Ellie $100 on her 21st Never binding as it must have consideration
birthday. If this promise was contained in a supplied by Ellie.
simple contract, the legal position is that such
a promise is:

52 Which of the following statements about A unilateral contract does not require
bilateral and unilateral contracts is not consideration but simply a promise to
correct? perform an act is sufficient.
53 (Delegated legislation) An example of Corporations Regulations 2001 (Cth).
delegated legislation is the:

54 (Separation of powers) Which of the The Governor

following is not one of the three branches of
the Commonwealth government in Australia:

55 (Law Reports) Where are decisions of the In the Commonwealth Law Reports.
High Court of Australia found only online?

56 A contract dividing the proceeds of a cocaine Void.

importing venture that has no technical defects
and that is not overly harsh/unfair to either
party is:

57 Which are some of the main features of the Validity of electronic transactions.
Electronic Transactions Act 1999 (Cth): &
Recognition of writing by electronic means.
&
Recognition of retaining information in
electronic form.
⇨ Chọn: All of the above

58 (Sources of law) Which of the following is Not overrule existing common law.
incorrect? Statutes may:

59 (Criminal proceedings) An indictable A more serious criminal offence.

offence is:

60 Which of the following facts about a It must always be supported by consideration

“contract under seal” is incorrect? to be enforceable.

61 (Delegated legislation) Which of the Can only be made by Government Ministers.

following is not correct? Delegated
legislation:

62 (Public and private law) Which of the Criminal law.

following is not classified as private law?
s

63 In which of the following situations is the Where Wrench had an option to purchase
offer most likely not to have lapsed? land but, unknown to Wrench, the seller died
prior to Wrench’s acceptance.

64 Where an agreement has been made during the intended to create binding legal relations.
course of trade or commerce between
 businesses, the situation will commonly
indicate that the parties:

65 Why are illusory terms in a contract They are vague or ambiguous so they fail to
problematic? create a legal obligation.

66 (Equitable remedies) Which of the following Must be awarded in a separate proceeding to

is incorrect? Equitable remedies: common law remedies such as damages.

67 (Australian Constitution) Which Act Commonwealth of Australia Constitution Act

established the federal legal and political 1900.
system and converted the separate colonies
into states?

68 The High Court’s decision in Waltons Stores Extended the doctrine of equitable estoppels
(Interstate) Ltd v Maher (1988) 164 CLR 387: such that it applies even where there is no
pre-existing contractual relationship between
the parties.

69 (Royal Assent) Who or what gives Royal The Governor-General on the Queen’s behalf.
Assent to an Act of the Commonwealth
Parliament?

70 What was one of the “practical benefits” Roffey did not need to find another
received by Roffey in Williams v Roffey Bros subcontractor.
& Nicholls (Contractors) Ltd [1990] 1 All ER
512?

71 (Changing the Constitution) Section 128 of By the majority of voters and in a majority of
the Commonwealth Constitution provides that States.
the Constitution can be: changed by
referendum that requires a “yes” vote:

72 The main legal issue in Felthouse v Bindley Generally silence /lack of action does not
(1862) 11CB (NS) 869 was: constitute acceptance of an offer.

73 (Criminal offences) Which of the following A committal hearing is held before most
is incorrect with respect to criminal offences? summary offence matters.

74 Which of the following statements about Acceptance can be in any manner chosen by
acceptance is false? the offeree.

75 With respect to revocation, which of the The offeror must personally communicate the
following statements is not correct? revocation to the offeree.
76 (Constitution) Which of the following Australia has one constitution only (States
statements about constitutions in Australia is have no constitutions).
NOT correct?

77 The Commonwealth of Australia Constitution Created the Commonwealth of Australia, and

Act 1900 was important because it left the States (formerly colonies) as
selfgoverning political units with their own
constitution, parliament, and courts.

78 Statutory law is a type of law made by The State and Territory Parliaments, and the
Commonwealth Parliament, subject to limits
in their constitutions

79 Most of the legislative powers of the
Commonwealth Parliament are concurrent
powers. However, there are a limited number
of exclusive powers. This means that in those
limited areas:
The Commonwealth Parliament only can
legislate, rather than the State or Territory
parliaments.

80 The doctrine of precedent relates to the ratio The reasons for the court’s decision.
decidendi of a case. This Latin phrase refers to

81 The rule of law: Is important for the conduct of business, as it

ensures that all people and companies are
subject to the law, creating the conditions
necessary for business to Australia has one
constitution only flourish.

82 Which of the following CAN constitute Cases deciding upon common law issues.
precedent? &
Cases deciding upon statutory interpretation
issues

83 An offer Lapses after the time specified in the offer, or

if no time is specified, lapses after a
reasonable time.
&
Must be accepted within the time specified in
the offer, or within a reasonable time if no
time is specified, in order for there to be an
agreement.
&
Must be sufficiently certain in order to lead to
a binding contract.
84 An acceptance Can still be effective (leading to a binding
contract) even if the offeror seeks to revoke
their offer, provided the acceptance is
communicated before the revocation

85 Which of the following is the most accurate Advertisements are generally not offers, but
description of the law, in relation to can be in particular circumstances.
advertisements?

86 Which of the following is the most accurate When goods are displayed on store shelves,
description of the law, in relation to goods the display of the goods is usually an
displayed for sale in stores? invitation to treat

87 Which is INCORRECT? Where the offeror The offeror has made the promise in writing
has made a promise to keep an offer open for a and signed it
period of time, the offeror can revoke the offer
prior to the expiration of that time if:

88 Samantha is negotiating with Daniel in Samantha and Daniel have a contract,

relation to purchasing a new chocolate because Samantha’s question was only a
moulding machine for her chocolate business. request for information, meaning Samantha
Daniel tells Samantha that the machine will could still accept Daniel’s initial offer.
cost $34,000. Samantha asks if the machine
can automatically wrap the chocolates, and
Daniel says that it can’t. Samantha then tells
Daniel that she wants to go ahead and buy the
machine, but Daniel refuses. Which of the
following is CORRECT?

89 Samantha is also negotiating with Jack in Samantha and Jack don’t have a contract,
relation to purchasing a chocolate wrapping because there is no valid acceptance of an
machine for her chocolate business. Jack tells offer.
Samantha the price of the machine is $7,800.
Samantha tells Jack she would be prepared to
pay $7,200, but Jack declines. Samantha then
tells Jack she will go ahead and purchase the
machine for $7,800, but Jack now refuses to
go ahead and sell the machine. Which of the
following is CORRECT?

90 Samantha advertises her chocolates for sale on It is a mere puff – exaggerated sales talk that
the radio, with the slogan ‘the best chocolates no-one would take seriously, and that can’t
you’ll eat in 2020’. What is the best form the basis of a contract.
characterisation of this slogan?
91 Samantha has a special sale at her chocolate The radio advertisement is an offer – and can
store, and places more advertisements on the be accepted by the first five customers to
radio. This time they say ‘the first five attend on Wednesday morning
customers to attend our store after we open
next Wednesday morning can purchase a box
of chocolates normally worth $25 for just $10
– we’re serious about our chocolates’. Which
of the following is CORRECT?

92 Samantha has another special sale at her The radio advertisement is an invitation to
chocolate store, and places more treat – it is not an offer, so can’t be accepted
advertisements on the radio. This time they by customers
say ‘special discount sale – come in and buy a
box of chocolates normally worth $40 for just
$15 – we’re serious about our chocolates and
want everyone to try them’. Which of the
following is CORRECT?
 Quiz 2, Chapters 5-13

No. Question Answer

01 The general principle with respect to Damages are to place the innocent party in the
damages for breach of contract is: same position they would have been in if the
contract had been performed.

02 Chris maintains that a document that he and Parol evidence may be admissible.
Kathy have signed is a binding contract.
Kathy maintains that it is merely a receipt
and does not include all the terms of their
agreement. Which of the following
statements is correct?

03 Which of the following is not a type of An agreement that offends the Australian
contract void at common law? Consumer Law (ACL).

04 Which of the following statements about the It does not apply where it can be shown that
parol evidence rule is true? the written contract was not intended to be a
complete record of the agreement.

05 Which of the following is a way that a Where a party to a delivery of goods contract
contract may be terminated by operation of becomes bankrupt.
law?

06 Which of the following is not an exception Employment.

to privity?

07 Century Dragon Pty Ltd is contracted to The time of delivery is likely to be considered
export 1000 beach balls to Minerva Beach an essential term.
Surf Club by 1 January, with payment due by
1 April. Which of the following is correct?

08 Which of the following statements is not Illegal objectives will not affect a contract
correct? With respect to legality of object: provided both parties have agreed to it.

09 Who/what are exempt from the provisions of Information providers such as media outlets.
s18 of the Australian Consumer Law?

10 In Codelfa Construction Pty Ltd v State Rail The High Court found that the contract was
Authority of New South Wales (1982) 149 frustrated.
CLR 337:
11 In considering whether a contract is a Whether the price payable takes into account
standard form contract, which of the the specifics of the party and the transaction.
following is not something that the court
must consider?

12 The term “transparency” in unfair contracts It is expressed in reasonably plain language

means: that is readily available to the affected party.

13 In Trident General Insurance Co Ltd v It was held that the subcontractor could get an
McNiece Bros Pty Ltd (1988) 165 CLR 107: indemnity even though the subcontractor had
given no consideration under the contract.

14 If one party has completed its obligations The contract cannot be terminated by simple
under the contract, and the other has not: agreement without consideration.

15 Which is not an enforcement measure under Disqualification from managing corporations

the Australian Consumer Law? for a period of time for a breach of s 18.

16 Which of the following is correct? When the parties’ obligations under a contract
have been discharged then so has the contract.

17 In Jarvis v Swans Tours Ltd [1973] QB 233, Damages were awarded partly for
where Jarvis was disappointed disappointment.
by, among other things, the little dry nut
cakes on his holiday:

18 Which of the following is not one of the Parent and child where the child is living
special relationships in which the onus of independently.
proving that undue influence was not
employed shifts to the denying party?

19 Which of the following is not a valid A contract for personal services.

assignment of a contract?

20 Chang wants the court to imply an May imply the term.

engineering custom into a term of a
contract to which he is a party. The other
party has no knowledge of this
custom. It is not contrary to any of the
express terms of the contract. The court:

21 Which of the following constitutes bait Jaz approaches a salesperson on the forecourt
advertising? to buy the car package she saw advertised on
television and is told that there were only two
cars for sale as a part of that deal and there are
 now none left. The salesperson tells Jaz that
she would look much better in the convertible
model and although there is no deal on that car,
it is only $50,000 more.

22 In which one of the following cases was it Koufos v Czarnikow Ltd [1969] 1 AC 350.
held that for a loss in the contemplation of
the parties to be recoverable it must be “a
serious
possibility”, “a real danger”, “liable to
result” or “not unlikely” to occur?

23 Coulls v Bagot’s Executor & Trustee Co Ltd Privity.

(1967) 119 CLR 460; Beswick v Beswick
[1968] AC 58 and Tweddle v Atkinson
(1861) 1 B & S 393 all relate to the doctrine
of:

24 Which of the following is not correct? Parol Is not admissible to evidence whether a
evidence: document constitutes a contract or merely a
note.

25 Non est factum means: It is not [my] deed.

26 In which case was it that held that where an Causer v Browne [1952] VLR 1.
exemption clause is in a non contractual
document, the clause must be brought to the
other party’s attention for it to be effective?

27 Which Australian case is most similar to H Day v O’Leary (1992) 57 SASR 206.
Parsons (Livestock) Ltd v Uttley Ingham &
Co Ltd [1978] QB 791 in relation to
applying foreseeability to limit claims for
damages?

28 Which of the following is not correct? With Is not relevant in considering the
respect to s18 of the Australian Consumer contravention.
Law, silence:

29 Parol evidence may not be admitted in which To contradict an unambiguous term.

of the following circumstances?

30 In the case of restraint of trade with respect The court does not easily allow parties to
to employment: contract out of their means of employment.
31 John tells Cara that the car he has for sale is Cara has no remedy under the common law (if
“as is, where is”' and “only needs the oil John’s statement was not a term in the
filter changed and she’s good to go”. John contract).
made this statement based on the fact he has
had the car checked by a mechanic a few
weeks ago. Unfortunately, the car required
more significant repairs before it was
roadworthy. What remedies are available for
Cara under the common law?

32 In which case did the court recognise that Baltic Shipping Co v Dillon (1993) 176 CLR
damages for disappointment and distress 344.
could be available subject to certain
limitations?

33 In which one of the following cases was it Baltic Shipping Co v Dillon (1993) 176 CLR
held that damages are not recoverable for 344.
distress or disappointment unless the
contract promised to provide pleasure,
enjoyment or relaxation or where the distress
or disappointment arises from physical
injury or physical inconvenience?

34 Which of the following is not an equitable Exemplary damages.

remedy?

35 How is repudiation determined by the court? Objectively.

36 The remedy of restitution is based on the Unjust enrichment where the defendant is
concept of? unjustly enriched at the plaintiff’s expense.

37 Tom agrees to fix Richie’s car for $1,000. Under the Australian Consumer Law and Fair
Richie pays a deposit of $200 and Tom Trading Act 2012 (Vic), Tom is entitled to
guarantees the job will be completed within retain the $200 deposit.
two weeks. Before Tom commences the
repairs, the car is stolen from Richie’s locked
garage and destroyed by fire. Richie
demands the return of his $200 deposit and
Tom refuses to give it to him. Which of the
following is not correct?

38 A unilateral mistake does not include: Mistake as to capacity of the parties.

39 Which of the following is not correct? An Is sometimes granted to compel a party to do

injunction: something they would not have
 been ordered to do by specific performance.

40 In which of the following circumstances is The contract involved the sale of an expensive
the court likely to order specific performance waterfront mansion on Sydney Harbour.
rather than damages?

41 Which of the following constitutes referral Jaz purchases a painting through a new art
selling? gallery that has just opened in town. The price
is high and Jaz is at first uncertain about the
expense, but the art dealer promises Jaz a
commission on sales to any of Jaz’s friends
who she sends along to the gallery. Jaz has a lot
of art collector friends so is sure that she will
receive some commission from the gallery in
the near future.

42 Which unfair practice involves participation Pyramid selling.

in a trading scheme where persons at the top
receive most of the benefits?

43 Which of the following is not correct with The person does not necessarily have to engage
respect to misleading conduct under the in the conduct.
Australian Consumer Law as compared with
the common law of misrepresentation?

44 Where a loan contract allows for termination An express power to terminate.

by the loan provider in the event of default
by the borrower, this is:

45 In Shevill v Builders Licensing Board (1982) “[I]f one party discharges [themself] from
149 CLR 620 at 625, Gibbs CJ performance by agreeing to a new agreement
listed all but the following various ways that that supersedes the previous one.”
a contract may be repudiated:

46 Which of the following is not accurate? Duress must be the only reason for entering
Duress involves: into a contract.

47 Exemplary damages: Might be ordered as a penalty where there has

been an intentional breach.

48 Which of the following is most correct? If an Liquidated damages.

amount of $5,000 is specified in a written
contract as the agreed genuine pre-estimate
of damages in the event the contract is
breached then this is commonly referred to
 as:

49 Marnie loans Bill $1000 so that Bill can pay An illegal contract.
a local politician to ensure his tender will be
the winning tender. The contract between
Marnie and Bill is:

50 Smithy Builders have a contract with Big That the clause is a penalty clause (to punish
Bank Pty Ltd which contains the the builders).
following clause: “Where Smithy Builders
fails to complete the contract by 7
December, it will pay a sum of $300,000 in
full and final satisfaction of its liability.”
Smithy Builders fails to complete by 7
December. If Smithy Builders wishes to
avoid paying the sum of $300,000, what
must it prove?

51 Sandy is selling her horse, Flossy. Miranda is Mere puff & representation.
interested in buying Flossy. Sandy tells
Miranda that Flossy: (1) Is the best little
racehorse in Australia; (2) Has all the
registrations, licences and permits required
to race in the current season but that Miranda
should probably get this checked herself.
These two statements are:

52 Which of the following is not usually Compensation for mere inconvenience or

recoverable by way of damages? disappointment.

53 Which of the following is not a type of Where an event occurs that is not the fault of
termination? either party that causes a fundamental change
to the nature of the contract and the parties
obligations and although the contract covers
that eventuality, it would cause hardship to one
party to enforce it.

54 Which of the following is not one of the The term is not transparent.
three elements of an unfair term under s
24(1) of the Australian Consumer Law?
Where:

55 Janey takes her fur stole to the dry cleaner. If the exemption clause was merely contained
When she returns to collect it. There is a within a notice on the wall, the dry cleaner will
black mark in the shape of an iron in the be liable for the damage.
 middle of her stole and it is ruined. The dry
cleaner tells Janey that he is not liable for the
damage to her fur stole as there was an
exemption clause in their agreement. Which
of the following is not correct?
56 In Victoria Laundry (Windsor) Ltd v
Newman Industries Ltd [1949] 2 KB 528:
57 Which of the following is the general
position of the courts when awarding
damages?
58 Which of the following statements about the
doctrine of privity of contract is true?
59 Which of the following is correct?
60 In Hong Kong Fir Shipping Co Ltd v
Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26,
the court recognised which of the following
terms which later became part of Australian
law in Koompahtoo Local Aboriginal Land
Council v Sanpine Pty Ltd (2007) 233 CLR
115?
61 With respect to substantial performance and
partial performance:
62 Which of the following is not one of the six
elements required for a claim of fraudulent
misrepresentation to succeed?
63 Which of the following is a circumstance
where specific performance would be
ordered?
64 Which of the following is not accurate?
Only the ordinary loss related to the delay in
installation of the boiler was recoverable
because the defendant was not made aware that
additional lucrative contracts had been:
negotiated.
Where it is possible to place an innocent part in
the position he/she would have been in if the
breach had not occurred.
Only a party to a contract may sue or be sued
on it.
Damages must not be too remote from a
breach.
Innominate term.
Partial performance is where a party
voluntarily accepts less than full performance
by the other party.
The representation must be in writing (cannot
be verbal only).
Where the subject matter of the contract is an
apartment in a complex of 20 apartments
Was found in North Ocean Shipping Co Ltd v
 Economic duress: Hyundal Construction Co Ltd (1979) 1 QB 705
and the threatened party was able to recover the
payments made under duress.

65 Which of the following is an element No fault on the part of either party.

required for the doctrine of frustration to
operate?

66 In Howe v Teefy (1927) 27 SR (NSW) 301 The fact that assessment was difficult did not
where a leased racehorse was retaken three prevent a court from granting damages where
months into a three-year lease: the plaintiff had been deprived of something of
value.

67 In determining whether a statement has Contractual intention.

become a term of the contract, the key test
applied by the courts is:

68 Where a contract restricts one party from It may be valid provided it was e reasonable as
exercising their trade between the parties and the public

69 Which of the following is not an example of The specifics of Rose's situation were not taken
an unfair contract term? into consideration by Melton Apartment
Construction Ltd.

70 Unliquidated damages are: Damages where the court is to determine the

amount.

71 Undue influence differs from duress in that: With undue influence, no unlawful act is
required.

72 Janine has sold her business to Simone. The court will always uphold restraint of trade
Simone insists on inserting a clause in the provisions in contracts for sale of business.
agreement that Janine cannot open a similar
business within 10 kilometres of her former
business, for the next two years. Which of
the following is not true?

73 Consumer guarantees as to title are Sections 51-56 and ss 60-61 of the Australian
contained within Consumer Law.

74 Which of the following is not correct? Was not awarded in the case of Pavey &
Restitution: Matthews Pty Ltd v Paul (1987) 162 CLR 221
as the contract was not in writing as required
by statute and therefore not enforceable.

75 Jacq and Jack robbed the Commercial Bank. The contract involved the commission of a
 Jacq thinks that Jack was too aggressive with crime and is therefore illegal and
the tellers and the robbery could have gone unenforceable.
very wrong. Jacq is now refusing to give
Jack his share of the takings. Which of the
following is correct?

76 Jong complains that the barbecue he bought Where Jong made known to the supplier that
is not fit for purpose because the metal sides he was going to use the barbecue for slow
melted the first time he cooked with it. The cooking meals.
manufacturer maintains that Jong should not
have used the barbecue for slow cooking and
that it never represented that the barbecue
would be fit for the purpose of slow cooking.
What are the circumstances in which the
guarantee as to fitness for purpose would
apply?

77 Which of the following is not true? A Guarantees that an exemption clause will be
signature on a contract containing an effective.
exemption clause

78 Which of the following would not constitute
the unfair practice of harassment or coercion
under the Australian Consumer Law? Where
there is a debt in connection with the
possible of goods and the creditor:
Tells the debtor, among repeated demands for
payment give the debtor a discount for early
payment.

79 When considering whether a contract is a Whether one party’s vicarious liability for its
standard form contract, the court does not agents is limited.
have to consider:

80 Which of the following is not correct? An Cannot be brought where there is no contract
action in restitution: between the parties.

81 Chris and Tama buy a noodle bar from As she merely passed on the information with
Udon4U Pty Ltd. In the course of no intention to procure a contravention she
negotiations, Udon4U Pty Ltd’s agent, probably will not be personally liable.
Nadia, misrepresents the turnover of the
noodle bar, stating an amount that is double
the actually turnover. Nadia herself received
this information on turnover from Geoff, a
director of Udon4U Pty Ltd. In making the
misrepresentation, what sections has Nadia
likely contravened?
82 Which of the following statements is An exemption clause is a term that excludes or
correct? limits the liability of one or more parties.

83 A party repudiates a contract when They are no longer able or are unwilling to
perform their obligations.

84 Chung is looking to purchase a carwash fraudulent misrepresentation.

business from Terry. Terry tells Chung that
she serves 100-150 cars per day and that she
has just concluded an agreement to service
the fleet of cars of a local business. In reality,
Terry has only served around 15 cars per day
since her customer service received a bad
review in the local newspaper and a
competing carwash business opened one
street away. Terry intends for Chung to buy
her business based on what she has stated.
This is an example of:

85 Which of the following is not a situation Where the performance of the contract is
where frustration would occur? rendered illegal by the destruction of the
subject matter of the contract by one of the
parties.

86 Where a contract is made in writing, the Are generally to be found in the writing.
express terms of that contract:

87 Which of the following is not a restraint of An agreement by which Steve agrees to repay
trade? his daughter’s loan debt in return for the person
who advanced the loan to his daughter agreeing
not to report Steve’s daughter to the police for
fraud.

88 Which of the following statements is not A breach of a warranty entitles the innocent
correct? party to be compensated with damages and
termination of the contract.

89 Which of the following is not one of the four May set out an unreasonable restraint
ways a statute may render a contract illegal
set out in Yango Pastoral Co v First Chicago
Australia Ltd (1978) 139 CLR 410? The
contract:

90 Ella contracted Anasaki to build a balcony It would be unjust for Ella to have to pay any
for her house to certain specifications. When money for a balcony that was not built to her
 Anasaki had finished, Ella was shocked to specifications under the contract.
see that the balcony was much bigger than
she had specified. Ella refused to pay
Anasaki. Which of the following is
incorrect?

91 Which of the following is not correct with Unequal bargaining power of itself is enough
respect to the prohibition of unconscionable to constitute a special disadvantage.
conduct within the meaning of the unwritten
law?

92 A party in breach of contract is liable to pay Losses occurring in the usual course of things
damages for from the breach.

93 Which of the following is not a way to Through breach.

discharge a contract?

94 What does the concept “quantum meruit” The innocent party would be unjustly enriched
mean? if they were able to retain the benefit without
compensating the party in breach for the
“amount he deserves”.

95 It is important to distinguish between Damages can only be awarded for fraudulent or

representations and terms because: negligent misrepresentation.

96 If the court held the sum the parties inserted The plaintiff would be able to recover $30,000
into their contract ($100,000) to be a penalty, only.
and the actual loss determined by a court
was $30,000:

97 Which of the following is correct? It is prohibited to offer goods at a special price,

not have a sufficient amount of those goods
available and then attempt to upsell to
customers who are drawn to the shop for the
special price deal.

98 Cathy and Mel entered into a contract where If the contract is divisible, Cathy is entitled to
Cathy was to steam clean seven rooms in payment for the work she has done.
Mel’s house at $200 per room. After
cleaning three rooms, Cathy abandoned the
job for a more valuable contract. Which of
the following is true?

99 Which of the following matters is least likely Where the supplier makes a commercial
to contribute to a finding of unconscionable decision to breach the contract knowing that
 conduct in connection with goods or the customer will seek a legal remedy for the
services? breach.

100 Which of the following is incorrect? is the same as termination, the contract is at an
Repudiation: end.

101 Which of the following is NOT a method of Rectification.

termination?

102 Which of the following statements is A contract may be illegal as performed where
correct? only one party performs it in an illegal manner.

103 Which of the following sections of the Sections 18 and 29.

Australian Consumer Law are relevant to
misrepresentation?

104 Which of the following is not correct with Owing to the Commonwealth’s limited
respect to the Australian Consumer Law? lawmaking powers under s 51 of the
Constitution, it applies only to corporations.

105 A liquidated damages clause in a written Sets out the amount agreed payable to the
contract: innocent party if there is a breach of contract.

106 Which of the following is not an A disclosure order issued by the ACCC.
enforcement measure under the Australian
Consumer Law?

107 Where one party believes the contract refers Mutual mistake.
to the Bonny Lass, a freight ship based out
of Norway, and the other party believes the
contract refers to the Bonny Lass, a freight
ship based out of Hong Kong, this is an
example of a:

108 How is the Australian Consumer Law The Australian Consumer Law is Sch 2 to the
structured into the Competition and Competition and Consumer Act 2010 (Cth).
Consumer Act 2010 (Cth)?

109 James is going through a difficult time and Undue influence.

does not feel he can confide in anyone.
Eventually he confides in the priest of his
church and asks for support. The priest
forcefully tells James to turn over all of his
money to the church or he will be struck
down by lightening. The priest does not
 believe that James will be struck down.
James makes the payments. Which of the
following is most likely legal grounds for
James to avoid the transaction?

110 In which High Court decision was it said: Koompahtoo Local Aboriginal Land Council v
“[T]here are two relevant circumstances in Sanpine Pty Ltd (2007) 233 CLR 115.
which a breach of contract by one party may
entitle the other to terminate. The first is
where the obligation [is] essential … The
second relevant circumstance is where there
has been a sufficiently serious breach of a
non-essential term …we rest our decision in
the appeal not upon the ground of breach of
an essential obligation, but upon application
of the doctrine respecting intermediate
terms.”

111 Which of the following is not a remedy for A criminal prosecution.

unconscionable conduct?

112 The test of whether a statement is a term or a Whether the party making the statement
representation is not dependent on which of believed in the truth of the statement or not.
the following?

113 Which of the following are sources of Statute and common law.
illegality?

114 What is the main difference between the The Australian Consumer Law refers to a
misleading or deceptive conduct provisions person.
in the Trade Practices Act 1974 (Cth) and in
the Australian Consumer Law?

115 With respect to consumer guarantees, which
of the following is not correct?
With respect to fitness for purpose, a
“disclosed purpose” relates to the supplier only
– the manufacturer may make representations
to the consumer, but the consumer cannot
disclose a purpose to the manufacturer and
receive a guarantee in return.

116 Which of the following is not a type of Contracts to oust the jurisdiction of the courts
contract illegal at common law on the
grounds of public policy?

117 A written contract allows Joseph, the Is valid as the parties’ intention is clear.
 neighbour of Sonny, to take “as many
strawberries as he likes each strawberry
season”. This contract:

118 Why are late payment charges on credit Banks penalties on cards are legitimate to
cards not penalties? cover their costs.

119 Ben planned the perfect surprise birthday Ben has a duty to mitigate his losses.
party for his mother: He hired a hall, he
hired a violinist and he organised catering.
Two weeks prior to the event, the violinist
called to cancel. Ben was so upset at the loss
of what he thought would be the highlight of
the evening that he called the whole event
off. Ben lost both the deposit on the hall and
the deposit for the catering. Which of the
following is correct?

120 A term that is vital to a contract is known as A condition.

121 Compensatory damages are also known as: Actual /ordinary damages.

122 Which of the following is not a way that a By showing it was brought to the notice of the
person seeking to rely on an exemption other party at the time of, or subsequent to,
clause can show that the clause has become entering into the contract.
part of the contract?

123 In which of the following cases would a plea Where the event should have been foreseen.
of frustration not succeed?

124 Which of the following is NOT a Fourteen days’ notice in writing is provided to
requirement for an assignment of a debt or debtor.
other chosen in action under various State
statutes?

125 In which case did the court find that passing Apand Pty Ltd v The Kettle Chip Co Pty Ltd
off had been engaged in and the misleading (1994) 52 FCR 474.
and deceptive conduct provisions had been
contravened?

126 Which of the following statements about Damages are awarded to compensate a party
damages is not correct? for all losses caused by breach of contract.

127 Which of the following constitutes pyramid Jaz is approached by her neighbour to join the
selling? sales team of Thames Beauty Products.
 Thames sells its products door-to-door through
agents and is a close-knit family type of
company. Agents that introduce other agents to
"the family" are rewarded with a finders" fee. It
is only $500 to join the Thames family, and Jaz
only has to spend $400 on products in her first
month.

128 Which of the following is not a circumstance Where the contract would require constant
where the court would award specific supervision by the court.
performance?

129 Which of the following statements is correct Rectification is a remedy for certain types of
with respect to mistake? mistakes in written contracts.

130 Which of the following is not correct? The Australian Consumer does not have any
provision for unconscionable conduct.

131 Which of the following is not correct? A If breached, entitles an innocent party to
condition: damages or specific performance under the
common law.

132 A party repudiates contract when The party is able but unwilling to perform their
obligations under it.

133 A consumer contract with respect to unfair Wholly for personal, domestic or household
contract terms does not involve: use or resupply.

134 The plaintiff in an action under s18 of the The conduct is misleading or deceptive or
Australian Consumer Law is required to likely to mislead or deceive.
prove what?

135 Sharma was selling his secondhand vacuum Natasha did not attach any importance to the
cleaner to Natasha a told Natasha that it statement when it was made.
could "do all the rooms in the house ten
times over without the filter needing to be
changed", Natasha spent a few weeks
shopping for other vacuum cleaners but
eventually returned and purchased Sharma's,
telling Sharma was the cheapest she had seen
in two weeks and she liked the colour. When
Natasha took it home she soon discovered
that: the vacuum cleaner could only do one
room at a time and then the filter would need
changing Natasha cannot rely on Sharma's
 statement for breach of contract because:

136 Which of the following guarantees applies to Guarantee as to title.

a sale by auction?

137 How may a court view substantial The contract is complete, but the uncomplete
performance of a contract? portion may be allowed for as a reduction of
the full contract price.

138 Terms may not be implied into a contract by: Representations.

139 Can a person use an official position they No because if a contract is involved, this could
hold for their financial advantage? lead to the promoting of corruption in public
life.

140 In Curtis v Chemical Cleaning & Dyeing Co The exemption clause in the sales agreement
Ltd [1951] 1 KB 805: for the drycleaning was not sufficiently
explained to the customer

141 Which of the following is not correct with The burden of proving that losses were
respect to mitigation of loss? mitigated falls upon the party claiming the
damages ie the defendant

142 Krell v Henry [1903] 2 KB 740 illustrated That the parties are discharged if an event
what point? occurs which forms the basis of the contract,
but which prevents performance at no fault of
either party

143 Contingent conditions include Conditions subsequent and conditions

precedent

144 Fraser crashes his car with his friend Angus Damages cannot be apportioned for breach of
as a passenger. Angus is injured. Angus was contractual duty of care where there is
not wearing a seatbelt. Which of the contributory negligence.
following is not correct?

145 The parol evidence rule performs much the A merger clause
same function as:

146 Which of the following is not correct with A subsequent simple contract can cancel a
respect to termination by subsequent contract where one party has completed their
agreement? obligations and the other has not

147 When a contract is made orally, the question Is a question of fact.

of what the express terms are:
148 The definition of "consumer" is limited by Recently increased to $100,000
what amount?

149 Which of the following is not an element Fit for the consumer’s purpose
required for acceptable quality of goods?
That the goods are acceptably

150 When it was said in Re Hall & baker [1878] The court’s tendency to regard contracts as
9 Ch D 538, “if a shoemaker agrees to make entire.
a pair of shoes, he cannot offer you one shoe
and ask you to pay one half the price”, this is
referring to:

151 Where a contract has not been completed The innocent party will be entitled to terminate
within the specified time: the contract upon giving notice that time is of
the essence.

152 Which of the following is not true with A person acting as a “mere conduit” in passing
respect to misleading or deceptive conduct? on representations may also be liable

153 Matt sells his car to Tabitha, who purchases If Tabitha promises to remove her car, Matt
it on the condition that she can continue to will not be able to enforce the promise unless
keep it in his garage at no cost for the next the promise is supported by consideration or
six months. Tabitha pays in full. Two months made under seal
later, Matt tells Tabitha she will have to
remove her car from his garage as he has
bought a new car and wants to keep it in the
garage. Which of the following statements is
correct?

154 Which of the following are not usually Injured feelings/disappointment

compensated for with payments of damages?

155 When are nominal damages awarded? A legal right has been infringed but there is no
actual loss

156 Which of the following is NOT correct? A criminal penalty can be sought for a breach
of s 18

157 Criminal proceedings may be brought for: Unfair practices

158 James, a chef, tells Laura, who is looking to Representation

buy his antique lounge chair, that the chair is
of Spanish origin. Three weeks later a
written contract is drafted that makes no
 mention of the chair's origin. The statement
that the chair is of Spanish origin is most
likely to be a/an mere puff

159 In Hadley v Baxendale (1854) 9 Exch 341; Losses that arise naturally from a breach of
156 ER 145 the court recognized contract
"reasonably foreseeable losses" as being: &
Losses that are actually contemplated by the
parties

160 Which of the following is not a requirement The consideration must be of higher value than
of a valid collateral contract? the main contract

161 Which of the following actions is unlikely to A threat to contact police if stolen moneys
constitute duress? were not repaid to the employer

162 A divisible contract Is one that provides expressly or impliedly that

performance is due after the other party has
performed stages of the contract.

163 Which of the following statements is The remedies available for breach of an
incorrect? intermediate term depend on their classification
as an intermediate term, not the effect of the
particular breach.

164 Which of the following statements is not Parol evidence is not admissible to evidence
correct? whether a document constitutes a contract or
merely a note.

165 In Barton v Armstrong [1976] AC 104, the the threats to the plaintiff’s life contributed to
court held that the plaintiff’s decision to sign the contract and
therefore constituted duress

166 Which of the following is correct with Despite the doctrine, a new owner of land is
respect to privity of contract? able to enforce a covenant between the
previous owner and another party

167 In ACCC v Turi Foods Pty Ltd [2012] FCA The statement that the chickens were “free to
19: roam” was misleading as there were too many
chickens pr square metre for the chickens to
easily move.

168 Which of the following is not correct? It is prohibited to offer goods at a special price
and not have a sufficient amount of those
goods available for a long period of time.
169 The Australian Consumer Law definition of
“supply” does not include:
170 Business or commercial agreements:
171 Which of the following is not a rule of
consideration?
172 A business will be able to rely on an
exclusion clause and avoid liability if the
clause is
173 If a contract has been breached, which
of the following is correct?
174 Which of the following is incorrect in
relation to terminating contracts?
175 Which one of the following is not one of
the conditions to be proved before a
contract will be frustrated?
176 Which of the following is correct, in
relation to remedies that can be sought
for a breach of contract?
177 What types of losses can a business seek
compensation for, in an action for breach of
contract?
Gift
Raise a presumption that the parties
intend to create legal relations.
Performing an existing contractual
obligation is good consideration.
Contained in a written and signed contract.
&
Included in a sign, and brought to the
attention of the other party by reasonable
notice.
⇨ Both A and B are correct
The innocent party may be able to
terminate the contract and claim damages,
depending on the breach.
&
The innocent party may elect to keep the
contract on foot (that is, keep the contract
in existence).
Contracts are terminated when they are
substantially performed
The frustrating event was foreseen and
was specially referred to in the contract.
Damages are the main remedy for breach
of contract, in the Australian legal system.
All losses that would ordinarily flow from
the breach of contract.
&
Losses arising from special circumstances,
where those circumstances were made
known to the other party at the time of
contracting.
 Quiz 3, Chapters 14-15

No. Question Answer

01 In Tame v State of New South Wales (2002) Part of the test of reasonable foreseeability is
211 CLR 317, where Tame was given a false a question of fact.
blood alcohol reading:

02 Which of the following is not a provision of the The court must rely on peer professional
Wrongs Act 1958 (Vic) relating to professional opinion even where it considers that opinion
liability? irrational.

03 Nicola drives the forklift at her place of work, Vicarious liability.

Rooze’s Roofing. Nicola always leaves the
forklift in a certain place where she has been
told to leave it, with the forks up off the ground.
One afternoon a customer who is collecting
goods from the workshop reverses his car into
the forks on the forklift. He is injured and his
car is damaged. What is the principle that
would make Nicola’s employer liable for her
actions?

04 Which of the following is not correct? Does not apply to claims in contract law.
The reform to the law of negligence that took
place in Australia in the early 2000s:

05 To claim damages a causal link must be The defendants breach and the plaintiff’s
established between what two things? injury.

06 The “neighbour principle” is often viewed as: A test of the foreseeability of harm.

07 In Australian Safeway Stores v Zaluzna (1987) The respondent was a lawful entrant upon
162 CLR 479: the land of the respondent, establishing a
relationship between them and there was
therefore a duty of care owed by the
appellant to avoid a foreseeable risk of
injury.

08 Which of the following is not correct? In The Wagon Mound No 1 and The Wagon
Mound No 2, where there was an
unfortunate combination of an oil spill,
welding sparks and floating cotton waste, the

09 Where a person gives advice, that advice is
relied upon and the advice is incorrect, the
person giving the advice may be liable in
negligence. Which of the following is
incorrect?
10 Why was the plaintiff successful in Overseas
Tankship (UK) Ltd v Miller Steamship Co Pty
Ltd (The Wagon Mound No 2) [1967] AC 617
(PC), when another plaintiff failed in the earlier
related Wagon Mound case?
loss was found to be not reasonably
foreseeable in the circumstances.
The duty of care only arises where the
“special relationship” involves a person
seeking advice from the advice-giver, not
where the advice was given unrequested and
merely accepted.
In the first case, the plaintiffs failed to show
that a reasonable man would have foreseen
the risk of damage from the oil spill.
 Quiz 4, Chapters 16 - 17

No. Question Answer

01 Which statement is incorrect? Partnership may be formed in order to

undertake a single business transaction.

02 Which statement is incorrect? More complex business organisations are

unsuitable for larger businesses.

03 Which of the statements below is incorrect? A partner’s express authority must be in

writing.

04 Which is an incorrect statement? If a member of a firm of solicitors acting for a

vendor in a sale absconds with the deposit,
his/her partners are not liable to refund the
money.

05 Which legislation regulates partnerships in Partnership Act 1892 (NSW)*.

NSW?
[or Partnership Act 1958 (Vic) if there is
no (NSW) after Partnership Act 1892]

06 Which of the following statements is not correct? Incorporated limited partnerships have been
introduced in all Australian States and
Territories.

07 Which finding is correct? In Popat v Popat was entitled to half the profits on the
Schonchhatra (1997) 3 All ER 800, the Court sale of the business and to a share of the
decided: profits that had accrued after the dissolution
of the partnership, but before the final
settlement of accounts.

08 Incorrect statement is? The owners of a corporation have unlimited

liability.

09 The incorrect statement is? A partner cannot pledge/sell partnership

property, incur and pay debts on partnership
accounts or hire employees.

10 The incorrect statement? If the giving of investment advice is within

the scope of the firm’s business then all
partners are jointly and severally liable for
 advice which is not in a client’s best interests.

11 Which legislation controls the actual registration Business Names Registration Act 2011 (Cth).
of the firm name?

12 Which of the following statements regarding Each partner must take an active part in the
partnerships is incorrect? direction and management of the firm.

13 Which of the following statements regarding the The Corporations Regulations 2001 (Cth), reg
written law is incorrect? 2A.1.01 does not set a maxima of partners for
architects and accountants.

14 Which statements below are incorrect? In a partnership, partners have limited

liability for the business debts.

15 How would a partner pledge the firm’s credit? Only for a purpose directly connected to the
firm’s business but must have express
authority to do so.

16 Which below is incorrect? A firm is not bound The person with whom the partner is dealing
by the acts of a partner if: knows or believes him/her to be a partner.

17 Which of the following statements is incorrect? A partnership must be in writing

18 Which statement regarding partnership is Partnerships do not avoid taking on the

incorrect? formality and expense of an incorporated
company.

19 Regarding partnerships, which of the following Partnerships are created with a view to profit,
statements is incorrect? so partners must make a profit. A partner
does not have to have a direct claim to a share
of the profits.

20 Find incorrect statement Partnerships can be dissolved because of

mutual incompatibility, making it impossible
for partners to carry on a business.

21 Which of the below does not apply to the The partnership under the Act must be
Partnership Act? registered with ASIC.

22 Which of the below statements is incorrect? A written and signed notice of a partner’s
intention to dissolve the partnership is
required, where no fixed term has been
agreed upon for the duration of the
partnership.
23 Cribb v Korn (1911) 12 CLR 205 established: The sharing of joint returns does not in itself
create a partnership.

24 Find one incorrect statement? A creditor can enforce liability against an

incoming partner whether or not he/she is a
party to the contract.

25 Which is incorrect statements regarding limited A limited partner does not have the right to
partnerships? inspect the books of the firm.

26 Which of the following statements regarding If a limited partner has suffered his/her share
limited partners is incorrect? of the partnership property to be charged for a
separate debt, the other partners are entitled
to dissolve the partnership

27 Which statement regarding dissolution of a After payment of the firm’s liabilities,

partnership is incorrect? partners do not have the right to have surplus
assets applied in payment of what may be due
to the partners respectively.

28 Find a statement that is incorrect A wrongful act/omission includes breach of

contract or of fiduciary duty, negligent
misrepresentation, and misleading or
deceptive conduct.

29 Which of the following statements regarding A firm’s assets as contributed by partners to

dissolution of partnership is incorrect? make up capital losses need not be applied to
pay the firm’s debts/liabilities to
non-partners.

30 Which statement regarding persons of unsound If a partner who is a minor enters into a
mind and minors is incorrect? contract with a third party on behalf of the
firm, the minor is liable as far as private
assets are concerned.

31 Which statement regarding an outsize partnership Its partnership agreement is invalid.

is incorrect?

32 Which of the following is NOT a ground for Partner leaves the jurisdiction.
termination of a partnership?

33 Find incorrect statement A partnership cannot be dissolved because

the business is carried on at a loss.

34 Which statement is not correct? A partnership agreement must be in writing;

it cannot be reached orally or by a course of
 conduct.

35 Which court decision regarding fiduciary duties In Harvey v Harvey (1970) 120 CLR 529, the
is incorrect? Court held that if a partner receives an
additional annual fee to be “on call” for that
client, the fee belongs to the partnership.

36 Which of the following is not an unfair practice Where a television advertisement for a
under the Australian Consumer Law? chocolate bar shows teddy bears working the
manufacturing lines

37 What constitutes an expectation to the usual The Corporations Regulations 2001 (Cth)
number of a partnership being 20 partners? provide greater numbers in certain specified
professions.

38 (Legislation in Victoria) What Act regulates Partnership Act 1958 (Vic)

partnerships in Victoria?

39 Which court finding is incorrect? In Mercantile Credit Co Ltd v Garrod [1962]

3 All ER 1103, damages were not recovered
even though, from the plaintiff’s perspective,
the sale of the car was within the usual course
of business.

40 Which of the below statements is incorrect? Partnership property is liable to be seized for
the private (personal) debt of a partner and
made liable on a judgement against the
partnership.
 Problem-Solving Questions

Janine and Rebecca are in the process of incorporating their small business. Janine thinks it is
best to keep it all simple and set up a proprietary company, with 20 shareholders investing in
their company. Rebecca tells Janine to think big and suggests putting their company on the stock
exchange so they can get hundreds of shareholders, raise more money and continue to expand
their business. Janine is not sure and seeks your advice about the difference between proprietary
and public companies, and whether or not any limitations are placed on these companies in fund
raising, share issuing and number of members.

SUGGESTED ANS:

A proprietary company must be a company limited by shares, or unlimited with a share capital,
and have no more than 50 "members" (people who have been allocated shares excluding those
who are employees). A proprietary company is not permitted to raise funds by offering or issuing
shares to the general public.

Public companies are not limited as to the number of members and may raise funds from the
public subject to compliance with other rules about raising funds and issuing shares.

Proprietary companies: - liability limited by shares; or - liability unlimited with share capital

Public companies: - liability limited by shares; - liability limited by guarantee; - liability

unlimited with share capital; or no liability

Greg, Allan and George are partners in a small law firm specialising in family and property law,
and share a large city office where they operate their business. Their partnership agreement states
that all profits, debts and liabilities of the firm are to be shared equally amongst partners. Greg
sometimes conducts client meetings from his home office in the evenings and on weekends. He
also offers these clients additional legal services such as wills and estate planning. He does not
share the profits from these transactions with his business partners. Is Greg required to account
for these profits under the Partnership Act? Is Greg breaching his partnership agreement?

SUGGESTED ANS:

Firstly, a partnership exists based on three elements (Partnership Act 1958 (Vic), s 5):
1. Carrying on a business;
2. In common; and
3. With a view to profit.
Therefore, they are enforceable by these following:

Partnership Act 1958 (Vic), s 32: Accountability of partners for private profits.

Partners are to render true accounts and full information of all things affecting the partnership to
any partner or his legal representative. In the event that a partner does not reveal the accounts to
the other partner or partners a court order may be sought.

Partnership Act 1958 (Vic), s 34: A partner has a duty not to compete with the firm

If a partner, without the consent of the other partners, carries on any business of the same nature
as and competing with that of the firm he must account for and pay over to the firm all profits
made by him in that business.

Case: Although Greg provided other legal services, it is basically the same nature 🡪 Greg is
competing with the partnership 🡪 Breaching his partnership agreement.

Partnership Act 1958 (Vic), s 33: Duty of partners to render accounts

Every partner must account to the firm for any benefit derived by him/her without the consent of
the other partners from any transaction concerning the partnership or from any use by him/her of
the partnership property name or business connection.

Case: Since the case did not mention whether Greg has the consent of other partners to offers
other legal services, there are two assumptions:
- If he has consent: Greg is not obligated to account for these profits
- If he has no consent: Greg is obligated to account for these profits 🡪 Breaching his
partnership agreement.

Over dinner one evening, Peter and Fred decide to each contribute $10,000 to form a partnership
to invest in a business venture. A written partnership agreement is drafted, which includes a
stipulation that all profits from the venture are to be shared equally between partners. Fred
invests an additional $5,000 to secure office premises and furniture for their venture. After 6
months, the business venture still has not commenced, and no profit has been made. Peter asks
Fred to refund his $10,000 contribution but Fred refuses since he has incurred debts and
liabilities. Fred argues that since there was no profit, their partnership is invalid. Is Fred correct?

SUGGESTED ANS:

According to Partnership Act 1958 (Vic), a partnership has three elements for its existence:
1. Carrying on a business; 2. In common; and 3. With a view to profit.
 According to Khan v Miah [2000], “carrying on a business” was not whether the restaurant had
commenced trading, but whether the parties had embarked on the venture. By acquiring and
fitting out the premises, buying furniture and equipment, establishing accounts etc, the parties
had, indeed, embarked on their venture

Case: Both of them have invested in the venture. Even though the venture has not been
commenced, the parties had purchased premises and furniture 🡪 They have embarked on the
venture 🡪 Carrying on a business

To be a partnership, there must be a “mutuality or sharing of rights and obligations”

Case: Include stipulation that all of the profit of venture would be equally share between
partners 🡪 The “In common” element

Obviously, Fred and Peter do not always make a profit but that must be the purpose.
Additionally, all of the profit/ loss of the venture would be equally shared between partners,
instead of reinvesting in business 🡪 With a view to profit 

With all those basic elements satisfied, it can be concluded that Fred and Peter had formed a
partnership; thus, they are jointly responsible for the liabilities and debts. In other words, Peter
cannot get back money, and Fred is correct.

Brian is on the board of directors of an electrical supplies company. The company constitution
states that all electrical hardware supplies must contract exclusively with Switch On Ltd. Brian
secretly meets Shane from a rival electrical hardware company and decides to contract with this
rival company to supply 1000 light switches, at a significant discount to the price paid to Switch
On Ltd for the same goods. When Shane invoices the company for the light switches, the other
directors tell Shane that the contract is invalid as it breaches their constitution. Discuss whether
any of the assumptions third parties are entitled to make under s 129 of the Corporations Act
2001 apply to Shane, and whether assumptions are affected by the breach of the company's
constitution.

SUGGESTED ANS:
s 129 assumes that:
The constitution & replaceable rules of the company have been complied with s 129 (1) all relevant times.
A person who appears (from information provided by the company and available to the public from
ASIC), to be a director/secretary of the company:
● has been duly appointed;
● has authority to exercise the powers and perform the duties like other “similar” companies granted
to those same positions: s 129 (2)
Officers and agents of the company properly perform their duties to the company: s 129(4)
Regarding s 129 of Corporations Act 2001, Shane has the right to sue the company because:
- The constitution & replaceable rules of the company have been complied with s129 (1) all
relevant times)
- Shane views Brian as a director 🡪 He has been appointed and has all authority to exercise
powers and perform duties s 129 (2)

It can be concluded that:

+ Third party: company bind even the breach (breach duty not affect Shane's assumption)
+ To the company: Brian has breached

Bill won a contract to carry out carpentry work on a large building renovation project for
Nicholson Ltd. Bill ran into financial difficulty, partly because his price was too low. He told
Nicholson he could not meet their deadline and, in fact, be unable to finish. Nicholson Ltd
agreed to pay him an extra $50 000 to complete the work. Bill did the work, but he has only
received $5000 of the agreed extra payment. Advise Bill of his legal rights.

SUGGESTED ANS:

Bill’s failure to do the obligations came from his own personal financial difficulty 🡪 It’s not fair
to Nicholos 🡪 Bill cannot sue this breach to the court.

1. A borrows $100 from B, due date is 31 December 2019. On the due date, A asks B whether B
can accept the repayment of $80 instead of $100 because A is in financial difficulties. B agrees.
Two months later, B changes his mind and wants to ask for the remaining $20. Can B succeed?

2. A borrows $100 from B, due date is 31 December 2019. On 31 October 2019, A asks B
whether B can accept the repayment of $80 instead of $100 because A is in financial difficulties.
B agrees. Two months later, B changes his mind and wants to ask for the remaining $20. Can B
succeed?

SUGGESTED ANS:

1. Yes, because B has to sacrifice his benefit of receiving the whole $100 on prmised date, while
A has more benefits of extending the payment date.

2. No, both parties have given out considerations to change the contract:
● B receives an early payment of $80 before due date to sacrifice the $20 for later payment
 ● A pays $80 eventhough A could do that on deadline to extend the original deadline
And these things happen beofre the deadline of the original contract (amendment)
Alice travelled on an interstate bus to Bolton to get her admission in the degree program at one
of the Universities there. Upon reaching the University, she realized that she left her folder
containing all her certificates on the bus. She contacted the bus company. With the assistance
from the bus company, she then contacted the bus driver and asked if he could help to deliver the
folder to her. The bus driver made a trip to the University and handed over the folder to her.
Alice was very relieved and pleased and instantly announced that she would reward the
conductor with $500. Once her admission formalities were finalised, Alice realized that she had
been too impulsive and now refuses to hand over the reward, saying that there was no agreement
as there was no consideration to support her promise. Do you agree? Justify your answer.

SUGGESTED ANS:
This is past consideration, however according to the promissable rule: No.

Explanation: The bus driver has done work he has no obligation which is handing the folder that
Alice did forget herself to take it with her. The driver has given his consideration. Alice, on the
other hand, received the benefits and has to do something in return. The bus driver has assumed
that a legal relationship existed and acted on that assumption but then suffer loss. And Alice
induced that assumption.

A man call an electrician (1st) to his house to fix the light in urgent manner (2nd)
He was out and only housekeeper greet the electrician
The electrician fix it (3rd)
He came back (4th) and refused to pay when an electrician almost finish his work of an hour
fixing (5th) (6th)
Electrician case of past consideration, but because it's not fair, the Court will apply the
promissory estoppel to this situation to protect the electrician

SUGGESTED ANS:

Although no contract was made, the promissory estoppel is applied

(gắn hình six elements of promissory estoppel)

Alan read an advertisement in a newspaper which was as follows:

● Used car for sale
● 3-year old Magenta Wow
● Accident-free, 1 owner
 ● Only 60,000 km
● Call Bahari 954-234 5678
Alan called Bahari and went to see the car. After a test-drive, Alan offered to buy the car for US
$8,000. Bahari agreed. The next day, the transfer was registered and Alan paid Bahari US $8,000
cash. Two weeks later, the car stalled. Alan's mechanic, upon inspecting the car, told Alan that
the car had previously met with a bad accident. The repair marks were clear on the
under-carriage. Also, the odometer had been replaced. According to the mechanic, the car is at
least 5 years old and must have done about 150,000 km. Advise Alan on what his rights and
remedies are.

SUGGESTED ANS:

This is misrepresentation case

● Advertisement make false representation • Alan relied on data provided to purchase the
car
● This cause loss to Alan for paying an amount of money for a new car for an older car,
which has been through accident.
● Since it is said that "1 owner" 🡪 this is Bahari's car and Bahari knew the statement was
untrue 🡪 this is fraud 🡪 can claim damge

Jean advertises her car for sale in the local paper for $15,000. A woman comes to inspect the car,
and Jean thinks she looks like the singer Kylie Minogue. The woman offers to buy the car on the
spot and pays with a personal cheque. Jean is overcome with awe because she believes she is
talking to Kylie Minogue and accepts the personal cheque in the name of "Kylie Winogue". Jean
takes the cheque to the bank the next day. Three days later the bank calls her to tell her that the
cheque is dishonoured. Jean contacts the police to search for the car and the dishonest buyer. The
police find the car at Emma's house. Emma claims she bought the car on Wednesday for $15,000
from a girl who looked like Kylie Minogue. Can Jean recover her car from Emma?

SUGGESTED ANS:
The first case is unilateral mistake. The girl looks like Kylie did not pay-breach in first case
Jean was fraudulently induced to believe that the person with whom they were contracting
face-to-face was someone else, because that women gave her the personal cheque in the name of
"Kylie"

The contract was voidable for fraudulent misrepresentation and could have been rescinded by
Lewis if he had acted before Emma.
● Emma, who is also without knowledge of the fraud, still received good title to the car
● The second contract is valid
This occurs when one party is deceived by a "rogue" and believes they are contracting with
another third party.
Pay attention to the name Minogue and Winogue
QUESTION ANSWER
Must a District court in NSW follow previous No, because each State has differerent
decision made by Supreme court of Victoria if hyrachy of States Courts.
facts are the same?
Must a District court in NSW follow its own No, this is the same level. (not higher binds
previous decision if facts are similar? lower)
Must a District court in NSW follow previous No, States and Federal are two different
decision made by the Federal court if facts are legislation
similar?
Must the NSW Supreme court follow Yes
previous decision made by the High court if
facts are similar?

Doctrine of precedent?

IN AUSTRALIA: lower court must follow decisions of the higher court in the same hierachy if
the facts are similar or identical.

IN VIETNAM: a decision of a court will become a precedent (binding on any other courts) if it
is declared by the Supreme Court Justice Panel to be a precedent.