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Question 1

(a) As Steward was preparing to start university life, he signed the following documents: (1) an acceptance of offer from the university; (2) an agreement with the Bank for his student loan of $50,000; and (3) a subscription to a SIM-only mobile phone plan for $12 per month.

Identify and describe the key elements of contract in each instance and whether each of them is a legally valid contract.

(b) Explain whether it will make a difference for the mobile phone plan, if he did not “sign” any documents because everything was transacted online.

(c) Steward’s friend, Bee Leat, was very disappointed not to receive an offer from the university for the same course. However, she later found out that the offer letter from the university was lost in the mail and by the time it reached her, the deadline for acceptance was over. Discuss with her whether she may still be able to secure a place in the course.

(d) In preparation for the new school term, Steward met a friend See Keat, who is a senior, who offered to give him all his old textbooks. Steward was super happy and took them home. That night, he felt bad and texted See Keat saying he would pay him $50 for them. Explain whether See Keat has an enforceable agreement with Steward.

Question 2

Mr Robin, was recently offered a job to be CEO of a multi-national company, States Limited, despite being already 80 years old. The company strongly believed that his wealth of experience will be invaluable for the company despite his age.

The agreement for the appointment was for 3 years, subject to Mr Robin being in a good state of health. At the signing of the agreement, Mr Robin was required to furnish a medical report stating his general health and mental capacity to take on the role.

(a) At the first board meeting, Mr Robin shocked everyone when he blanked out during a presentation by the CFO to update on the financial status of the company. He was unable to respond to questions other board members asked. It turned out later that the medical report was forged. Mr Robin is experiencing the onset of dementia. Evaluate and determine whether the company is able to rescind the contract.

(b) Consider and discuss whether your answer above would be different if States Limited had actually carried out their own independent medical examination of Mr Robin and that their report did not find any health concerns.

(c) If the medical examinations and reports at the time of the contract were accurate, and that the onset of dementia for Mr Robin only started after the contract was signed, apply an alternative argument for States Limited to end the contractual agreement with Mr Robin.

(d) Assuming the contract is so discharged, state and apply the relevant statutory rules to determine whether Mr Robin is able to seek a reimbursement of the following expenses: (1) $500 spent on purchasing office wear for his new job; and (2) 40 hours spent on reading the materials in preparation for the first board meeting.

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