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Business and Corporate Law

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Business and Corporate Law

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 Week 1

The Australian legal system allows every state to have their own constitution. Australian constitution was behind the creation of the commonwealth under which some of the power was appointed to the commonwealth government and were stated in constitution. The exclusive powers in the area of defence, excise and custom were rendered to the constitution. However, banking and taxation shared the powers given to the commonwealth with the state. The powers were clearly divided in three different constituents namely, residual, concurrent and exclusive. The differences between them are stated below:
 
Exclusive power
The powers that are strictly exercised by the commonwealth constitution are called exclusive powers. It includes (Ng, 2017): 
the power of enforcing excise and custom duties according to section 90.
It has the authority to manage and control the armed forces. The section 114 prevents the actions of state in raising or naval forces. 
It has the authority to call for war.
It regulates the between states. 
 
Residual power
Every colony had  their own group of powers before federation but after it, various powers were subjected to commonwealth and the remaining were left with states. The powers that remained with the states are known as the residual powers. Examples where the residual powers were used are (Fisher, 2019):
Transport 
Education
Housing development
Primary production
Law and order
Social welfare and public health issues
 
Concurrent power 
When the power is present under commonwealth and states and both can make laws on same matter. This power is known as concurrent power and can be used in the below stated matters (Steytler, 2017):
Commerce and trade with other countries
Divorce and marriage
Guardianship of the child after divorce
Telephonic, telegraphic, postal, etc. services
Taxation 
Banking services
Quarantine
 
Week 2
Issue:
The issue arises in the case is whether the consumer is in the contract with the product providing company or not.
In the given case, the customer bought a packet of chips from the vendor machine but the packet he received had pieces of plastic in it. In such circumstances, the customer is in a contract with the chips providing company. Therefore, the company is responsible to provide eligible product or else return the money to the customer if the product is of not required quality. 
The law states that when a customer buys product of a specific company, then the consumer and company both enters an unwritten contract. Under this contact, the company is bound to provide a qualified product to the customer. However, if the customer finds any damage to the quality, quantity, price or expiration of the product, then the customer has the right to take actions against the company. The company is in the position where it can provide goods and services to the customers because it has undertaken the responsibility of the products. If any problems are found in the product then the company will be held accountable (Scott, 2018). The contract between the consumer and supplier starts when the customer agrees to buy the product. However, it is an indirect method then also the company is responsible for the value of the product. Therefore, the customer who bought chips from the vendor machine at the station can accuse the supplier for providing degraded product. The customer can ask for compensation from the company by filing a legal complaint against it. The company does not have direct written contract with the customer but the company is providing its services to the mass of people. In such cases there is unwritten rule that the company in any circumstances has to provide good quality product. Therefore, according to the case, it is concluded that the customer who bought chips has right to sue the company for not following the contract. 
 
Week 3
In legal terms, anyone who is below the age of 18 is considered minor or infant. The infants do not have the understanding of the laws and contracts and are considered as incapable of contracting with the other adult party. An adult is anyone who is above the legal age. In other words, someone who is 18 years old or above are adults. To protect the infants or minors from the consequences of the contract, different laws are stated where the minor can exit to save himself from the unwanted consequences.
Voidable contract are those contracts that involve minor and are voidable by the infants. This means that the minor can leave the contract if he finds it against him. However, the other party does not have the authority to leave the contract because they are above the legal age. Therefore, even if the minor exits from the contract, the contract is valid as other party is still bound to the contract (Wijeratna, 2015). However, to prevent the abuse and exploitation of this law, some exceptions are present under which the minor can engage in the contract and cannot exit it, for example economic status of parents, food, lodgings, etc. In these cases the law is considered valid where it is not voidable for some necessities like food, automobiles, etc. The voidable contract stated in constitution are therefore, those which holds the tendency of ratifying legally. 
Void contract: these contracts are those where both the parties can exit the contract. This happens in cases where the contracts involve gambling or impossible actions. A void act is never rendered valid unlike the voidable act (Kim, 2017). The void contract becomes invalid as soon as one party exits the contract. Moreover, the void contracts are those that do not hold the tendency of being legally ratified.
 
Week 4
Contra proferentum rule is a law that functions against the ambiguity of the statements in the clauses that are provided by the party. It is a legal belief in the contract law which ensures that any ambiguous clause will be interpreted against the party that introduced the clause. It is used in guiding the legal explanation of the act which is applied when the such ambiguous contracts are challenged in the court. The contract includes clauses that will be beneficial to the party who is preparing it. In such cases, the other party may not interpret the clause written in ambiguity or vaguely and may fall prey to such doubtful contracts. Contra proferentum therefore, is applied in such cases to protect the genuine party from such deceiving acts. The clauses are interpreted in the court and are considered against the personal benefit of the other party. The faulty party is enforced with this rule because it included the clause for personal benefits. However, this law cannot be enforced if the clauses are equal from both the sides. In such cases, neither party can call for the contra proferentum rule (McCunn, 2019). 
The rule is not used as a defensive rule if one party notices any ambiguity in the contract. However, a case can be filed in the court if the company comes across doubtful statements. The reason why the rule is not used in today’s environment is because, both the parties are equally involved in putting the clause in the contract. Therefore, the chances of such deceiving acts are rare and parties do not have to indulge the rule of contra proferentum. However, contracts like insurance and employment involve clauses from one party only. If the other party finds any doubtful statements, then it can file a complaint and the rule will be applied in such cases. 
 
Week 5
Issue
Can Bryan sue Amina?
What are the principles learned on breach of contract?
 
Rule
The breach of the contract is done when the party to the contract fails to meet the terms and condition of the contract and fails to perform the undertaken contract. When a party fails to fulfil one or all clauses written in the contract then the contract is considered as breached. In other words, it is the failure of the company to fulfil the contract made with the other party or breaking of the promise made (Cassar and Buttigieg, 2015). Here, suing of Amina is completely dependent on the statements in the contract. However, if nothing is mentioned then Bryan can file a complaint against Amina. However, there are chances that they both remediate the breach by settling on the terms like she will compensate for the loss or she will consider him once the financial crisis is stabilized. 
 
Application 
There is not mention in the case that Amina is allowed to lay-off Bryan under unusual circumstances, therefore, it can be imagined that the agreement does not include the lay-off clause. Under this clause she can temporarily or permanently ask him to leave the job because of the financial problems. In this case, Amina failed to fulfil the employment clause that she made with Bryan due to economical incompetency. She terminated him after signing for the job. The contract is surely breached here long before the starting period. Therefore, it is a case of contract breach. Here, it is no specification of the agreements that both the parties settled on. Amina laid off Bryan on a notice that he cannot join the job. 
 
Conclusion
There is nothing such is said therefore, it is completely fair if Bryan sues her according the given clauses. However, in my views it is unethical and Bryan should take action for compensation. 
 
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