Nowadays, it become essential for parties as well as organisation if they are establishing any business or contract, then they must comply with all necessary rules and regulations. It is important for every corporation and individuals to comply with all these rules and regulations of laws in order to protect their rights. In addition to this, it is also crucial for them to remain updated with these laws to get additional advantage from the same as there are different acts in law such as contract and sales of good which have to be followed by every person while entering into any agreement. In this report, case study on contract has been explained in detailed where Lianne does not make any written contract with Mary for organising her event. Further, impact of advertisement on people of Australia has been studied here.
Issue: In given case study, Lianne wants to treat her friend by organising some events. First issues arise when Mary email Lianne for quoting the amount of $10k and on that mail Lianne reply put the quote of a price of $9,500. Mary approves this lower price but on one condition that this offer will be valid for only seven days. Against this mail Mary replies that Sorry, now the price is $10,000 which is due to increase in cost. However, these messages were not read by Mary due to technical problem in computer. So, this was an issue which were arise between them.
Rule: According to provision of Contract law, it is essential for parties that if they are entering into any agreement, then it should be in written. Through this there are chances to get special remedies if any injury take place. Here some essential terms which are required to be perform by parties when they are entering into any contract or agreement.
Offer – It is an expression of willingness of contract which specified some terms and made with some intentions. An offer may be made expressly or by conduct. It is not essential for first party to made offer to specific person only. It can be made to person, class of people.
Acceptance – It occurs when party is answering the offer which has been offered by first person by the way of statement or act. An acceptance will become valid only when if offeree knows the offer and there should be manifest intention to accept the proposal with having unconditional terms and conditions. Where the offeror prescribes the manner in which acceptance shall be made, then approval should be made that manner. But if, acceptance or manner is not properly prescribed, then proposal must be created in reasonable or usual manner.
Parties – A contract between party does not exist when agreement between the parties are not clearly defining their terms and conditions. While forming any contract it is essential for parties that there should be legitimate intention to create legal relation with each other. Through this both parties become bound to perform their duties with specific terms and conditions and enforceable by court.
There is also another term which include in contract i.e. counter offer. This offer is considered as proposal which is made as the result of undesirable offer. This offer is conditional and while making this proposal it automatically reject the prior deal. For example, seller wants to sell his vehicle for $15k. A buyer arrives and offers $10k for purchasing vehicle. The offeror provides counteroffer for taking a vehicle for $ 12,000 with the objective of obtaining higher price. At same point of time, if offeror decline, then nobody cannot force to buyer to purchase vehicle at $15k.
Postal rule means where contract makes exception to general rule that acceptance will only create when it has been directly communicated to offeror. This will be considered as binding contract when party accept the offer in mail box even when it is not reached with offeror.
Electronic Communication Regulations means that where person or organisation wishes to send message through electronic modes such as; mail, fax, phone in order to provide better services to customers. While following this rule, it will be beneficial for parties which saves their time and cost both in regard to passing a necessary information to others.
Application: A contract is more important than any agreement is made between two people. While forming any contract there must be offer and acceptance, consideration, intention to create legal relation. If there is any duress, false statement or any unconditional dealings, then these are making contract illegal or void.
In given case scenario, contract between Mary and Lianne were made but it was not in written and these are made on mail. On the basis of this, Mary agreed with Lianne to organise her event and quoted a price for this i.e. $10,000. But on this mail, Lianne seems that the price is bit high and she proposes a new price of $9,500. So in this situation, counteroffer had taken place. While accepting this offer Mary put condition on that, I will work on $9,500 and this offer is open for only 7 days and had to provide 10% non-refundable deposits which should be received with in time framed.
Afterwards, when party was conducted by Mary, Lianne delayed in paying the deposits in time period. So, Mary replies that now price is $10k and it has been increased due rise in expenses. But this mail was annoyed by Lianne and writes that you are actually bound by $9,500 and go ahead with 10k on which deal has been done. But after 30 minutes later, she changed the mind and mailed again to Mary that deal is off.
Miscommunication between Lianne and Mary had taken place because there was a technical issue which is faced by Mary in regard to reading of mails. Further the contract is made according to postal rule and it is applied here because Lianne sends mail to Mary. Along with this regulatory regarding electronic communication has also applied.
In this situation, both parties are not having legal intention to create relation while forming any contract. It is just a deal which has been made between them. At the time of doing deal with Mary, then it is responsibility of Lianne to make this agreement on written so that she will be liable for getting remedies if any loss has taken place while conducting this place.
Case law, Carmichael V. Bank of Montreal, DLR 570, judgement of court was that offer had been appropriately accepted because it has been properly conveyed to offender through their agent Tilley. Further, verbal communication of acceptance is counter-offer where the person is responsible in charge at defendant bank.
Case law, British Crane Hire v Ipswich Plant Hire  QB, decision of court was held that defendant was unaware about the risk at the time of forming contract. So court implied the term of contract on both parties regarding the business of hiring the plant and used in terms of trade.
Conclusion: From above case it has been concluded that both parties are having legal intention to create contract but normal deal has been done between them. Miscommunication between parties had taken place and due to this contract is not created. Along with this, they are also not held liable to perform legal obligations and rights which is written in contract of law.
Issue: In second part, it was assumed that a contract has been formed between Mary and Lianne for $9.5k. However, issues were arising that the food and drink which was supplied by Mary (with the help of her supplier ‘Food Organic Ltd) was entirely different from Lianne order. Furthermore, boat also cramped and there was no space for dancing and many more issues which was faced by client.
Rule: According to Consumer right act 2015, there are certain standards which has been applied to every transaction for selling or suppling and goods or services. Here is some responsibility of seller while selling any goods or suppling services to their customers.
Goods and services should be match with description, model or sample – Whatever goods and services are supplied by seller it should be according to description which has been given by them otherwise it will be considered as an offence.
Must be of satisfactory quality – Goods must be standard and should be quality which includes safety, free from danger, durability. If all these things are not included in suppling goods or services, then buyer is having right sue against them to recover loss amount.
But there are some remedies are also available if seller breach contract under Sale of Good and Supply of Services Act 1982.
Suit for damages for non-delivery – When seller wrongfully neglect or refuses to deliver best quality of services or goods to customers. Through buyer is having right to recover the price, which has been paid by them already.
Suit for specific performance – When the goods or services are ascertained, then buyer is having authority to sue against seller for specific performance where they are complying with that to perform for the same . In this seller become bound to perform all duties which has been written in agreement.
Suit for interest – Buyer is also having opportunity to recover such interest amount for not providing appropriate services to them. They can also recover the paid money if consideration of payment is failed by seller.
Apart from this seller become liable for paying all damages amount which has been caused them.
Application: As per provision of Consumer Right Act 2015 and; Sale of Good and Service Act 1982, they had framed many rules and regulations for defending the rights of consumers. These rights and obligation were arising when seller are not performing their duties which had been specified in contract.
In given case scenario, Lianne is having so many rights against Mary because she had not perform her duty very well. Below mention are some rights which are available for her;
Damages in regard to providing services – As per case scenario, Mary have to provide high quality of services to Lianne because so many issues were faced by her at the time event. For example, food or drink which was supplied by Mary was completely different from order which had been made by Lianne. So, she is having authority to suit against Mary for recovering amount which was paid by Lianne.
Specific performance – In this, Mary is liable for performing her duty which has been specified in contract. Specific performance has been executed by Mary so ultimately Lianne get right to case against her. Specific performance generally when goods or services are of special significance or in value.
Further, it is responsibility of seller to serve services according to customer need. If they found with any guilty, then they are liable for compensating loss amount to injured party. In given case, Mary is liable for providing loss mount which has been faced by Lianne while conducting the event. Apart from this, Lianne is also having right under consumer act to recover the amount if any damages had been caused by Mary.
Conclusion: It has been concluded from above report, that Lianne is having rights which has been defined in Consumer Right Act 2015. She is having authority to recover remedy from Mary because due to her she had suffered from loss of $9.5k.
Most Australian businesses are using advertising strategies in order to promote their goods and services. There are many sources which are using by them such as; television, radio, print media, internet and these ensure about that advertising is complying with regulatory rules and regulations.
Australian Consumer Law is a national law whose aim is to protect consumer rights against trading in country. Advertising and selling practices have been evolved rapidly. Nowadays, these advertisements are occurred widely in online environment because many of the organisation are using social media apps, online shopping sites, search engines and many more. Those business which are operating at online are also having same rights and obligations as compared with who are performing their activities in traditional bricks or mortar stores. But it is essential for entities to ensure about that whatever sales practices are done by them should be comply with act which has been framed by government. ACL provides guidelines regarding misleading or deceptive conduct, consumer guarantees, false or ambiguous of claims.
There is some obligation which has been applied to organisation when they are conducting different advertisement or promotional techniques to increase the brand awareness of their product and services. Some of them are enumerated as below.
Bait advertising is the practices where organisation is offering goods and services at low price in order to attract large number of customers towards them. However, while conducting this type of event is considered as illegal because those goods which are advertised by organisation are not available by them in quantity. In short, it is responsibility of organisation to clearly state that if goods are available on short supply.
Most of the organisation are offering rebates, gifts or redemptions which are considered as illegal. If these are not provided according to promised, then these activities are considered as unlawful. So, it is their responsibility if they are offering rebate or gifts, then it should be provided with in time period only.
Apart from this, Consumer Protection from Unfair Trading Regulation is stopping to organisation in misleading or harass the consumers by providing them false or wrong messages; using aggressive sales technique to attract customers. Advertising of business is covered Business protection from Misleading Marketing Regulations. As these includes that trade mark or logo of company which are of similar; comparing of products with their competitors which should not be same. If any organisation is advertising their products or services, then it is essential for them to see that these should not include misleading of any information. Those advertisements which are given by organisation should not exploit any religion of person.
It is essential for every individual or corporation, if they are advertising any product or services in order to increase their brand awareness by giving false information, then it will give negative impact on their reputation. Further, they will become liable to pay penalty which has been imposed by authorised body or government. If in case of Mary advertise about her products and services and these are giving false information to customers, then she is liable for paying penalty amount as well as fines which will imposed by government or court.
Case law, Australian Competition and Consumer Commission v Reckitt Benckiser (Australia) Pty Ltd  FCA 1408, decision of court was held that the products which were contained in same active ingredient (with same quantities) and with similar formulation, from that none of the four goods was more or less effective than others which are treating of particular symptoms. This decision was held that because on the following things false representation were made by Reckitt Benckiser; each and every product which were of Nurofen specific Pain Range are specifically formulated to treat under particular type of pain which specified on packaging of relevant product.
Case law, Australian Competition and Consumer Commission V A Whistle & Co (1979) Pty Limited  FCA 1447, judgement of court was that Whistle had authorised agent in order to publish false testimonials and its franchisees were also publishing similar false testimonials. So on the basis of this court decision held that; Whistle had to pay pecuniary penalty of $2, 15,000, he his restrained for a period of three years from making false or misleading statement.
It can be concluded from above report that while doing any deal with other person, then it is essential for both parties that it contract should be framed. So while forming this both parties will get right to get remedies if any one of them get injured. Further, if anyone found with that false or misleading of representation has been publish by them through advertisement, then they are liable for compensate the amount to those who has affected from this.
Books and Journals
Australian consumer law update: accc cases targeting false or misleading representations. 2017. [Online]. Available through: <http://www.davies.com.au/ip-news/australian-consumer-law-update-accc-cases-targeting-false-or-misleading-rep>. [Accessed on 15th September 2017].
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penalty of $2, 15,000, he his restrained for a period of three years from making false or misleading statement.
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