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University of New South Wales *

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1961

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Law

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Nov 24, 2024

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docx

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Case study #1 a) Which of these parties must honor the contract? (1.5 Marks) John (the seller) and Miles (the buyer) are both bound by the terms of the contract when they agreed to sell John their car stereo system. But, since Miles is a minor, the contract may not be binding on him legally if he has not received consent from a parent or legal guardian. A person must be of legal contracting age in order to be legally obligated by the terms of the contract they engage in. In almost all states, a person under the age of eighteen (18) who is not married may enter into any contract that an adult may, unless the contract is specifically forbidden for minors under local law (e.g., an agreement to purchase cigarettes or alcohol). When a minor makes a legally binding agreement, it may usually be revoked later on if the minor's circumstances change. (Morasiewicz, 2019) b.) Why can the other party get out of the contract? (1.5 Marks) In most cases, those who are considered to be minors are those who are under the age of 18 and do not have the legal competence to engage in contracts. As a result, given that Miles is just 17 years old, he could be allowed to break out of the contract if he makes that decision for himself. If John did not follow the appropriate legal formalities while entering into the contract, such as seeking the agreement of Miles' parents or legal guardian, the contract may also be voidable on the grounds that John did not follow the relevant legal formalities. (Morasiewicz, 2019) Since the contract was formed with a minor, it may be invalid. A minor just has to declare that they are opposed to being bound by a contract in order to avoid it. It is believed that minors are unable to contract. As a consequence, minors have the freedom to cancel the contract at any time

thanks to laws and courts. This option is entirely up to the minor; it does not belong to either party to the agreement. Hence, the minor is permitted to do anything they want with the contract as long as it is still in force. c.) What is the effect if the party who can end the contract, chooses to do so? (2 Marks) In the event that Miles decides to cancel the agreement, John may be required to return the vehicle stereo system to Miles together with the $500 that Miles has already paid towards the purchase of the system. If, on the other hand, Miles has harmed the apparatus or is in breach of the agreement, John may have the right to retain the original payment and seek reimbursement for any damages that have been sustained. In the event that the parties' agreement were to be terminated, it would be necessary for them to examine the stipulations of their contract as well as the legal requirements that would be relevant. (Morasiewicz, 2019) If the minor wishes to withdraw his or her affirmation, the majority of states just ask that the individual return any things or other considerations that are now in his or her control. However, a growing number of jurisdictions now require the minor to take whatever additional actions are required to put the adult back in the position he or she was in prior to entering into the contract. This is a change from the past when fewer jurisdictions required the minor to fulfill this obligation. (Morasiewicz, 2019) Case Study -2 a. On what grounds could the landlord bring a legal action against Jamal for the $4,500.00 arrears owed by the previous tenant? (1.5 Marks) On the basis of the lease agreement Jamal signed, which included a provision requiring Jamal to take responsibility for the arrears, the landlord could take legal action against Jamal to

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recover the $4,500.00 due by the former tenant. The text of the lease agreement, any promises made by the landlord or former owner about the arrears, and any discussions or agreements made between the parties before to signing the lease would all affect whether the landlord would've been successful in taking such action. b. Briefly explain whether Jamal has a defense if sued by the landlord for the outstanding arrears of $4,500.00? (1.5 Marks) Jamal may have a defence if he can prove that the landlord engaged in misrepresentation or fraudulent behaviour by initially agreeing that Jamal would not be responsible for the previous tenant's arrears and then changing the terms of the lease agreement at the very last minute. This could give Jamal a chance to avoid having to pay the arrears that the previous tenant owed. Jamal has the option of arguing that he was forced to sign the contract, and that his decision to accept responsibility for the past-due rent was not taken willingly. If, on the other hand, Jamal signed the lease voluntarily and without being pressured or misled in any way, it would be difficult for him to argue against the legitimacy of the contract later on. (Service Canada, n.d.) c. In your opinion, if Jamal is paying the monthly rental fee but does not pay the arrears should the landlord be able to terminate the lease? (2 Marks) If Jamal pays the monthly rental cost but does not pay the arrears, the exact conditions of the lease agreement will determine whether or not the landlord has the right to terminate the lease and evict Jamal from the property. If the lease has a default provision that gives the landlord the right to terminate the lease in the event that arrears are not paid, then the landlord may have the right to exercise this right. But, whether or not the landlord would choose to do so is likely to be determined by a number of circumstances. These considerations include the amount of rent that is past due, the nature of the landlord's

relationship with the parties, and the landlord's own personal and professional interests. It is thus, essential to keep in mind that the particulars of each given situation may have a significant influence on the way in which the law is implemented in any jurisdiction. However, under Canadian business law, landlords generally have the right to terminate a lease if the tenant fails to pay rent or breaches other important terms of the agreement. ( Canada Business Corporations Act , n.d.)

References Canada Business Corporations Act . (n.d.). https://laws-lois.justice.gc.ca/eng/acts/C-44/page- 3.html Morasiewicz, R. (2019, August 6). Minors – The Special Case Of Liability Waivers . Insurance Laws and Products - Canada. https://www.mondaq.com/canada/insurance-laws-and- products/833398/minors--the-special-case-of-liability-waivers Service Canada. (n.d.). Business and industry - Canada.ca . https://www.canada.ca/en/services/business.html

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