Bussiness Law

CASE STUDY

BY

Edison Omar Villareal Echesi

00155224T

Business law

Lionel Wong

Case study 1

Jennifer aged 25 years is the granddaughter of Betty who lives by herself in Mount Gambier. Jennifer has just completed a degree in Psychology at the University of South Australia. Betty promises Jennifer that if she leaves Adelaide and moves to Mount Gambier to live with her she will transfer her house into Jennifer’s name. Jennifer leaves her mum and dad, boyfriend and a job she held at the Service to Youth Council. She arrives in Mount Gambier and cannot find any work as a psychologist but she obtains work part time as a waitress in a café. Betty refuses to honour her promise regarding transferring the house to Jennifer who wants to sue her grandmother for breach of contract.

1. What area of law requires discussion

The area mentioned is about contract law, in this case the issue is related between two persons, that one offer something by exchange of something from the other person, but when all the steps are doing, the offeror retire her promise and affect the other person emotionally and financially

1. What is the legal issue?

The problem is the breach of the contract between one of the parties that affect in negative way the other party

1. States of the law on the relevant issue

Betty made a request to a Jennifer for leave the comfort zone and change to other place by the exchange of house’s papers, where only the offeror necessity was satisfying, in this case is a verbal contract that can be upheld by a court because someone decides to breach the agreement, although without written terms and conditions it may be difficult to prove.

1. Apply the law to the facts

Even if Jennifer has all the rights in her favour, it is not an enforceable by consequences so the law cannot help her in this situation. This case is not considered as a contract, is a verbal agreement legally binding

1. Conclusion and solve issue

 In this case Jennifer has not the authority to sue betty because this promise was a verbal agreement and don’t have legal consequences, the best solution for her is return to her old live and recover all things because she is not enforceable to stay in the house of the grandmother to fill her necessities.

Case study 2

 On 1 February 2015 Sanche writes to Richard offering to sell him his 1974 Holden Monaro for $60,000, ‘the offer will remain open until 5pm on 3 February 2015’. Richard receives the letter at 10 am on 3 February and tries immediately to phone Sanche. He does not answer and Richard leaves a message on his Message Bank saying he was interested in buying the Monaro but was only willing to pay $55,000. At 10.30 am the same morning, Richard changes his mind about how much he is willing to pay for the car. He sends an email to Sanche saying, ‘Disregard, my earlier phone message. I accept your offer to sell your 1974 Monaro car for $60,000’. Sanche does not check his email at all on the 3 February but does check his phone Message Bank. He listens to the voice message from Richard and immediately sells the petrol to Bradley who he has also been negotiating with. On 4 February at 9 am he opens his emails and reads Richard’s message.