Task You must answer the two problem-type questions below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder. Pleasenote that the word...

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TaskYou must answer the two problem-type questions below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder.
Pleasenote that the word limit of 2 000 words is atotal for both questions(ie, it is not 2 000 words for each question).I would however expect that students should be able to answer both questions in far less than 2 000 words.Your bibliography is not included in the word limit.
**In this subject, assignments are marked on-line, using an adapted MS Word programme. You therefore MUST submit your assignment in Word format, NOT as a PDF document. If you submitin PDF it will not be able to be marked.**
***If you anticipate applying for an extension for this assignment, please read the rules on extensions in this Subject Outlinebeforedoing so.***
Question 1 (10 marks)

Qantas Airlines Ltd signs a contract with Airbus Corporation Ltd for Airbus to build a new aeroplane. On average, Qantas would make $800 000profit per day from using such an aircraft.


The contract has 545 terms. Term 56 says that the plane must be able to travel 10 000 km at 800 km per hour. Term 455 says that the aircraft must have an in-flight video system capable of showing 36 channels of entertainment to passengers.


After the contract is signed, Airbus sends to Qantas a package containing a large number of documents, including the contract itself and examples of the colour scheme that will be used. In the middle of these documents there is also a new document headed ‘Limitation of Liability’, the key part of which states as follows:



The liability of Airbus Corporation Ltd for breach of contract is capped at $ 300 000.


When the plane is delivered, its engines are as required, but, due to confusion at the factory, the wrong software has been loaded into the entertainment system, which has only 34 channels. It would take a week to re-configure the software. Advise Qantas Airlines fully as to what its legal position is, citing relevant case law.



Question 2 (10 marks)

Frank runs a shop that sells appliances such as ovens, fridges and freezers. He is a sole trader – his business is not incorporated. Gemma is employed by Frankas a salesperson. Among the second-hand appliances in the shop is a dishwasher, priced at $ 350. One day Tom, is browsing in the store, sees the dishwasher, and says to Gemma “That’s a great price – I will just go home to see if I have space for it”.

Gemma’s niece, Frances, is getting married next month. Gemma knows that Frances needs a dishwasher. Gemma quickly phones Frances and says “Get to the store quickly – I think I can get my boss to agree to take $ 300 for a fantastic dishwasher”. Gemma tells Frank that she doesn’t think that the dishwasher will ever sell for $ 350, but that a customer might pay $ 300. Frank authorises Gemma to sell the dishwasher for $ 300. Frances comes in and Gemma sells it to her at that price. Later, while Gemma is on her lunch break, Tom comes in to the store. When he inquires about the dishwasher, Frank tells him that it was sold that morning for $ 300. Tom tells Frank that he would gladly have paid $ 350 for it.


Another salesperson, Bob, has the job of selling large quantities of washing machines to commercial laundries. He has frequently negotiated with Angela, who owns a chain of laundries, to sell her washing machines. Bob frequently comes to work late and is sometimes drunk. One Friday afternoon, Frank says to Bob “You are fired with immediate effect – clear out your desk and leave”. Frank then rushes off to a meeting across town without making sure that Bob actually leaves the premises.


Bob sends an email to Angela, saying that he has just received ten new industrial washing machines which he can sell to her for $ 1 000 each. Angela agrees, and makes an electronic transfer of $ 10 000 in payment, saying that she will collect the machines on Monday. Bob withdraws the $ 10 000 from the Home Appliance Specialists bank account and disappears overseas with it. When Angela comes to collect the machines on Monday, Frank refuses to give them to her, saying that Bob had no authority to sell them as he had been fired. Angela has sued Frank for delivery of the machines.


Give Frank legal advice in relation to the above situations.

Answered Same DaySep 08, 2019

Answer To: Task You must answer the two problem-type questions below, using the ILAC (Issues, Law, Application,...

David answered on Nov 22 2019
103 Votes
Case 1: Qantas Airlines Ltd vs. Ai
us Corporation Ltd
Issue:
Has Ai
us
eached its contract for supply of airplane parts? Could the law of contract and subsequent
each of contract be applicable to Ai
us Corporation and if so what is the amount
of damages that can be applied in this case.
Law:
The contract is ruled by the Australian Contract Act which is a common law practice. The Contract law of Australia deals with regulations that encompass parties to a contract from discharging their promises that are affected when a contract is made.
The law says that the terms of the contract and free and fair and with specific understanding of the terms of the contract between both the parties.
The terms of the contract are very clear in this case. The contract law says that once the contract has been signed by both the parties to the contract it becomes enforceable for both parties to discharge their respective terms of the contract.[footnoteRef:2] [2: Smith v Hughes .Court of Queen's Bench [1871] LR 6 QB 597]
The principle of 'consensus ad idem' is applicable here as was decided in stare decisis.
It is also expressly implied that when parties to a contract sign a contract, both parties to the contract understand the terms of the contract and if there are any anomalies parties to the contract should sort it out as the contract becomes enforceable once signed .there can be no repudiation or alteration of the contract unless both the parties agree to changes.
Application:
Ai
us has violated the terms of the contract in two ways
a. They have not performed the terms of the contract by installing software which could offer only 34 channels instead of 36.
. They had materially altered the contract terms by including the “limitation of Liability Clause“which was not a part of the original contract. The Firm has further very cleverly inserted this document in the middle of the bulky document.
The contact between Qantas and Ai
us was explicit and clear and contained 545 terms. The term 56 pertains to performance of the contract where it was expressly said that the airplane should be able to travel 10 000 km at 800 km per hour. Term 455 says that the aircraft must have an in-flight video system capable of showing 36 channels of entertainment to passengers.
Furthermore Qantas received a huge set of documents where the “limitation of Liability” term was kept in the middle with a means to mislead. This was an inclusion to the original contract .This new document stated that “The liability of Ai
us...
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