Assignment 1: Australian Contract Law

Decent Essays
ASSIGNMENT ONE MEDIA REPORT ANALYSIS [Word count: Words] 1. Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report. Contract Law Contract law plays a key role in most of issues incurred in this case. Firstly, a verbal agreement was derived between the director- Salim Mehajer and Anping Yan to carry out the cleaning service. The agreement is an essential element in contract law. Even though, “the contract was negotiated” and none of payment transactions have been recorded, the contract is still enforceable under Australian contract law as it stated a contract can be formed by negotiation between two parties instead of formal written document (Graw…show more content…
The duty and obligation related to these issues are shown in contract law. Corporations Law SM and Downtown Project Development are both corporation. They both operate based on the regulations and policies outlined in corporation law. The company’s commencement, its operation and directors’ duties are fundamental terms which relate closely to the area of corporation law. Mr Mehajer was recognised as “the sole director of Downtown Project Developments” (Gardiner 2017). His carelessness in handling business document can be considered as a breach of director’s duties which may affect directly to the organisation. The introduction of another directors and their duties are issues of corporation law. SM Project Developments seek liquidation in February 2013, which require series of steps to be taken including the appointment of liquidator, the meeting of secured and unsecured creditors, the withdraw of director qualification and the deregister of the company number by ASIC. The steps, guidance and policies for insolvent company is part of corporation law. (ASIC 2014) Tort Law (Tort of…show more content…
The breach of director’s duty arises resulting from the lack of acknowledgement, which accidentally cause damage to the organisation, are subject to tort law, specified in Tort of negligence (Graw et al. 2015,457) Criminal Law As Mr Mehajer has been disqualified the role of directors until November 2018, he has generally been banned from practicing director’s role in any other company. However, his name as a sole director still appear on the structure of Downtown Project Developments. It is recognised as an illegal action which can result in “12 months imprisonment and/or a $5,500 fine” under section 206A of the Corporation Act 2001(Cth). A case that involves imprisonment and fine due to an unacceptable conduct are subject to criminal law. 2. Demonstrate how the law functions in these various ways, by reference to specific examples within the chosen media report and the areas of law you identified in question
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