Question 1
Darren has been injured in a minor car accident and has cracked a bone in his right foot. At hospital he is advised that his injury can be operated
on, but the operation carries significant risks for a goal kicker. Darren’s doctor, Zhivago, advises him that the operation on his foot can fix the
problem, but may also result in a permanent inability to kick goals. She fails to inform Darren that if the operation is unsuccessful, the over
compensation to his right foot will eventually result in him being unable to play football altogether. Darren is advised that the operation carries
a 70% success rate although, as injuries to goal kickers are rare, the sample size for such a statistic is limited. He is also advised to act
quickly as the risk of inability to kick goals increases the longer it is left untreated. Whilst there are no recorded cases of the injury causing a
complete inability to play football, without the operation Darren will be left with 15% less running speed.
Darren chooses to undergo the procedure. Unfortunately for him, the operation is a failure and he is rendered unable to kick goals. Within 6 months
he suffers from persistent injuries to his right foot and before one year has passed Darren is unable to play professional football.
Darren is in your office seeking compensation for his loss. Had he been advised that he could be rendered completely unable to play football by the
operation he would not have undertaken the procedure. Darren is also seeking compensation because he is no longer able to work as a bouncer, his
former job before his football career.
Advise Darren in relation to the law of negligence and any defences that may be available.
Question 1
Simon and his girlfriend Jane decided on going camping in the Three Gorges National Park in northern New South Wales. The park is set up for campers
with a designated camping area with cooking facilities and toilets. It also has an area set aside for parking visitor’s cars and setting up tents.
The camping area has a sign directing people to set up camp within designated areas but there is no restriction on where people can go in the actual
park.
The park is a wild natural place with dense forests and narrow winding pathways. There are many cliffs and gorges in the park and it has had hikers
who have suffered injuries when on hikes in the past.
On their first evening in the park Simon and Jane start cooking a meal on the cooking facilities made available to campers. It is actually Simon’s
birthday so they both have a few celebratory drinks. Simon actually becomes a little affected by alcohol and wanders off into the bush to go to the
toilet. He completely forgets that there are toilets in the camping area and just thinks finding a nearby bush will be good enough. Unfortunately
Simon stumbles through the bush for quite a distance, misjudges his footing and falls over a cliff edge. Fortunately he does survive the fall but
suffers serious leg injuries that does incapacitate him in his ability to walk.
Simon urgently seeks your advice in respect of his chances in establishing liability for negligence against the National Parks Commission. In your
answer make sure you address each element required in establishing negligence.
Contract
Question 2
Jak has been working as a successful accountant for several years since graduating with a double major in finance and accounting. He is 28 years
old and is looking to start his own accounting practice in a developing area of New South Wales. He has saved up a substantial amount of capital,
however, he will still need to borrow $25,000 to finalise the arrangements. He has no assets and cannot obtain a loan without a guarantor. Jak
consults his elderly parents, who grew up in Australia. He tells them he has a fantastic idea and he needs their help. Jak’s parents have always
been very proud of him and think his plans are fantastic. Jak tells his parents he needs only $25,000 and this will be repaid within 6 months,
after which time they would be under no further liability. Arrangements are made for a bank manager to visit Jak’s parents and they both sign as
guarantors for Jak. The agreement they sign, however, is one for an infinite credit limit over an infinite period.
Jak borrows $50,000 from the bank for a term of 4 years. His business goes well for some time, however, after 9 months rival practices open which
significantly slows Jak’s revenue stream, forcing him to default on his loan obligations. The bank calls in the loan and approaches Jak’s parents
for the balance, a sum of $43,000. Jak’s parents do not have $43,000 readily available to repay the loan and they fear losing their family home.
They seek your advice.
Question 2
Barry is a sailor on a boat that sails from Melbourne up the east coast to Brisbane. He is paid a wage for his services which include him cleaning
cooking and assisting the captain in navigating the boat. Whilst on their journey up the east coast one of the other sailors deserts the ship.
Apparently the other sailor decided that the bright lights of Sydney were more to his taste than remaining on board as a sailor.
The Captain explained to Barry that if he remained on board the boat and did not desert like the other sailor he would pay Barry the other sailor’s
wages. Barry was excited to get the extra money but was unclear as to the Captain’s intentions. He asked the captain whether he had to do anything
extra for his extra pay and the Captain replied, “Well lad, just make sure everything is ship shape, just like you had to do before. If you stay on
board you can have a job on the return journey.” Barry thought that this was a good deal and stayed on board for the balance of the journey.
On reaching Brisbane the Captain (who was obviously a very untrustworthy individual) refused to pay Barry the extra wages of the sailor that
deserted.
Barry urgently seeks your advice on whether he can sue under contract law for the extra wages. Advise Barry. In your answer discuss whether
promissory estoppel could be used by Barry to assist in his claim for the extra wages.
Question 3
Alexander and Susan were in a de facto relationship. They had been living together for 3 years and typically made all household decisions together,
including what apartment to live in, what groceries to buy and how the rent was paid. There was never any written agreement between the two and
neither party thought twice about trusting the other.
Alexander thought of himself as a bit of an entrepreneur and had stumbled across a business deal three months ago to sell household furniture,
requiring an initial outlay of $50,000 and estimated ongoing costs of $20,000 per year for the first few years. Alexander, excited by the prospects
of leaving his mundane job as a checkout attendant, told Susan about all the benefits of running his own business and asked Susan if she would be
willing to help out with some of the costs. Susan agreed to contribute $15,000 now and $10,000 when the business was ready to open to cover the
first few months of stock and operating expenses. Susan also agreed to be paid back whenever it was convenient for Alexander, who would primarily
be in charge of the running of the business. In return, Alexander agreed to do all the household chores until the business opens and promised to
attempt to find an extra job to generate enough capital to cover a few unprofitable periods whilst the business takes off.
Alexander has purchased the business with a combination of his own savings, a bank loan and Susan’s contribution, and preparations have begun to
open the business in 2 months’ time.
Last week Alexander and Susan had a major falling out and Susan has moved back in with his parents, refusing to pay any rent on the apartment he
shared with Alexander. Alexander is in your office, scared that Susan will not provide the extra $10,000 when the business opens. Alexander has
also received a letter from Susan’s lawyers demanding that Alexander repay the $15,000 within 28 days.
a) Advise Alexander and discuss the 3 elements of a simple contract, concentrating on the element that is particularly raised by these facts.
(13 marks)
b) On the above facts, would your answer be any different if the two had reduced their agreements to writing?
(2 marks)
c) Would your answer be different again if there was an express exclusion of an intention to create legal relations in the written agreements?
(2 marks)
Question 3
Stropper Wallace was a professional rugby league football player who played for the Hammerheads professional football club. During a match early in
the season Stropper injured his knee. The injury was such that if he were to have immediate surgery he would not have been able to resume playing
for nearly the whole of the remainder of the season but would have been fit for both the preseason training and the season itself for the following
year. An alternative was to resume playing after only three weeks and play out the current season with the benefit of pain killing injections and
other therapy.
Stropper was not yet contracted to the Hammerheads club for the following season. Stropper was approached by his coach Barnum, and told that the
Hammerheads club would give him a contract for the following season if he chose the second course and deferred surgery. Aware that he did not have
many more years left in his career, Stropper was keen to take up the suggestion and resume playing through to the end of the season.
A week before the conclusion of the 20 week season Stropper was informed that the Hammerheads did not wish to retain him for the following season.
He thereupon attempted to find another club with which to play for the following season. However because there was insufficient time available for
him to recover from the operation on his knee to strengthen adequately for the season, his attempt to find another club proved unsuccessful. He
claimed that his absence from the competition in that following season would mean that he had no recent track record on which a prospective club
might be expected to engage him for subsequent years.
a) Assuming Barnum acted with the authority of the club, advise Stropper whether Hammerheads were obliged to give him a contract for the
following year. (13 marks)
b) Did the Hammerheads revoke the offer prior to acceptance? (2 marks)
c) If Stropper did not provide consideration is there a potential remedy in promissory estoppel? (2 marks)
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