AYN 456: BUSINESS AND CORPORATIONS LAW
Assessment 2 (Assignment)
Due: 5.30pm, Friday 27 September 2013.
Word limit: 1000 words maximum (excluding footnotes and reference list)
Please note that cutting and pasting any material from readings or lecture material or the Internet will
result in failing this assessment. Please also note that university and school policy on plagiarism applies on
every piece of assessment.
The purpose of this assessment item is to enable you to demonstrate your understanding of the legal
concept of contract. To achieve this purpose, the assignment comprises two compulsory parts – Part A
and Part B.
Part A (approx 700 words) 10 marks maximum
The legal concepts related to terms in contract are significant aspects of commercial transactions.
Your discussion should be framed around the following four issues and reference should be made to
any relevant case law and legislation.
• Terms in contract (in a legal sense);
• Types of terms in contract;
• Sources of terms in contract;
• The objective of using terms in contract.
Use the above points to structure your answer.
Part B (approx 300 words) 7 marks maximum
John lived in Brisbane. He had never been to the Sunshine Coast. He saw an advertisement for a new store
opening soon on the Sunshine Coast. John drove his car to the Sunshine Coast and parked at a car park
adjacent to the new store. Sonia Pty Ltd owned the car park. At the entrance to the car parking station there
was a large sign which stated:
Cars parked at owners risk.
No liability is accepted for any damage caused to any person, vehicle or visitor howsoever caused.
John took a small ticket from a ticket machine in order to enter the car park. The ticket had writing on it
which John did not see. The writing stated: ‘This ticket issued subject to the conditions as displayed on
premises.’ John did not see any of these conditions inside the car park.
John went shopping at the new store and then he returned to his vehicle. He noticed that his vehicle had
been extensively damaged. John approached the supervisor of the car park and informed them of what had
happened. The supervisor said that they were very sorry, but that the company could not help. The
supervisor said that when John drove up to the entrance of the car park, and accepted the ticket, the contract
was formed, therefore the company could not be held responsible for any injury to John or his vehicle even
though it had occurred in their car parking facility.
With reference to the legal concept of terms in contract, advise John as to the liability of the car
parking station for damage to his vehicle.
Use the ILAC method to structure your answer for Part B and the Australian Guide to Legal
Citation for citation and preparing the reference list (1+2 marks maximum).
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