BUSINESS AND CORPORATIONS LAW
HI6027: BUSINESS AND
CORPORATIONS LAW
Trimester 2 2016
Individual Assignment
Instructions:
Answer ALL questions.
Each question is worth 10 marks.
Total marks for this assignment is 20 marks.
Total weight for this assignment is 20%
Word limit is 2000 words.
2
QUESTION 1 – 10 MARKS
Consider the followin" rel="nofollow">ing situations and in" rel="nofollow">indicate whether consideration is present and
whether Jack has an enforceable agreement:
a) Jane is goin" rel="nofollow">ing overseas and she offers to give her Lotus Super 7 sports car to
Jack. The market value for this type of vehicle in" rel="nofollow">in good condition is around
$25 000. Jack accepts. (2.5 MARKS)
b) Jane offers to sell Jack her Lotus Super 7 sports car for $25 000. The market
value for this type of vehicle in" rel="nofollow">in good condition is around $25 000. Jack
accepts. (2.5 MARKS)
c) Jane offers to sell Jack her Lotus Super 7 sports car for $2500. The market
value for this type of vehicle in" rel="nofollow">in good condition is around $25 000. Jack
accepts. (5 MARKS)
QUESTION 2 – 10 MARKS
A shipbuilder had contracted to build a tanker for North Ocean Tankers. The
contract was in" rel="nofollow">in US dollars and didn’t contain" rel="nofollow">in any provisions for currency
fluctuations. Approximately halfway through construction of the ship, the United
States devalued its currency by 10 per cent. As the shipbuilder stood to make a loss
on the contract, it demanded that an extra US$3 million be paid or it would stop
work. The buyer reluctantly agreed under protest to pay, as he already had a charter
for the tanker and it was essential that it be delivered on time. The buyer didn’t
commence action to recover the excess payment until some nin" rel="nofollow">ine months after
delivery. Will the buyer succeed in" rel="nofollow">in recoverin" rel="nofollow">ing the excess?
END OF ASSIGNMENT