_BaadShah_
Member
- Joined
- Aug 11, 2003
- Messages
- 60
- Gender
- Male
- HSC
- 2005
Hi
I need some help with an assignment i received. Could you guys just give me few pointers on what i should talk about and focus on and also what sort of cases i could use to back up my argument.
Question 1
Morris sold his photocopying and laminating business for $95,000 to Beth. Because Beth did not have the money to pay cash, Morris agreed to an immediate payment of $35,000 with the balance payable out of future profits over the next three (3) years.
In the first six (6) months the business did well and Beth was able to pay Morris a further $5,000. A competitor then opened nearby. This competitor was part of a well known chain of photocopying shops and as such had access to cheap overseas supplies of laminating and copying materials. Consequently, the competitor was able to undercut Beth's business. Beth's profits fell alarmingly.
Beth advised Morris that financially she could no longer continue with the agreement and would have to close the business. Further, she accused Morris of knowing that the competitor was about to open up and therefore she was commencing legal action to rescind the contract based on fraudulent misrepresentation.
Morris contacted Beth and made the following comments: "I absolutely deny your accusation. By my reckoning you still owe me $55,000. However, if you continue with the agreement I'll reduce that amount to $35,000." Beth accepted the deal.
Six (6) months later Beth landed a huge contract laminating all the posters for a chain of tourist attractions along the north coast of New South Wales. Beth's profits have soared. Morris is now demanding that the original contract price be complied with (i.e Beth pays the remaining $55,000).
Part A] Is Beth liable to pay the original contract price? 15 Marks
Part B] Discuss whether this situation would differ in any way if Morris was the uncle of Beth. 6 Marks
Part C] Discuss whether your answer to Part A] would differ in any way if Morris had conducted all his businesses including the printing business as Morris Pty. Ltd.?
6 Marks
Like for each question what do you guys think i should refer to and focus on, and what cases do i refer to help me out.
Your help seriously will be most appreciated. The assignment is due in 1st week back.
Cheers, Ash
I need some help with an assignment i received. Could you guys just give me few pointers on what i should talk about and focus on and also what sort of cases i could use to back up my argument.
Question 1
Morris sold his photocopying and laminating business for $95,000 to Beth. Because Beth did not have the money to pay cash, Morris agreed to an immediate payment of $35,000 with the balance payable out of future profits over the next three (3) years.
In the first six (6) months the business did well and Beth was able to pay Morris a further $5,000. A competitor then opened nearby. This competitor was part of a well known chain of photocopying shops and as such had access to cheap overseas supplies of laminating and copying materials. Consequently, the competitor was able to undercut Beth's business. Beth's profits fell alarmingly.
Beth advised Morris that financially she could no longer continue with the agreement and would have to close the business. Further, she accused Morris of knowing that the competitor was about to open up and therefore she was commencing legal action to rescind the contract based on fraudulent misrepresentation.
Morris contacted Beth and made the following comments: "I absolutely deny your accusation. By my reckoning you still owe me $55,000. However, if you continue with the agreement I'll reduce that amount to $35,000." Beth accepted the deal.
Six (6) months later Beth landed a huge contract laminating all the posters for a chain of tourist attractions along the north coast of New South Wales. Beth's profits have soared. Morris is now demanding that the original contract price be complied with (i.e Beth pays the remaining $55,000).
Part A] Is Beth liable to pay the original contract price? 15 Marks
Part B] Discuss whether this situation would differ in any way if Morris was the uncle of Beth. 6 Marks
Part C] Discuss whether your answer to Part A] would differ in any way if Morris had conducted all his businesses including the printing business as Morris Pty. Ltd.?
6 Marks
Like for each question what do you guys think i should refer to and focus on, and what cases do i refer to help me out.
Your help seriously will be most appreciated. The assignment is due in 1st week back.
Cheers, Ash