GSP165: (The Law and You) Outline the basic principles of law in the selected areas of course study: Law of Contract, Family Law and the law relating to Wills, together with matters of probate, administration and succession.
Module / Subject / School:
GSP165: The Law and You
Requirements:Â
Question 1:
(a) Marco, who was a senior director of renown social media company Tweety has recently resigned, claiming that Tweety had failed to pay him (and other employees) $33,000 in promised bonus. In Jan 2022, Tweety promised its employees that they would receive 50% of their target bonuses, however, Marco never received that money. State and elaborate what are the key elements that needs to be present for Marco to prove that there is a legally binding contract between Tweety and him.
(15 marks)
(b) The promised bonus was made for sales targets that Marco had achieved in 2021. Explain whether there is sufficient consideration in this case.
(7 marks)
(c) Tweety was later bought over by a billionaire Elan Mask. Elan posted a social media post on Tweety, directed at Marco, that if he can continue to keep up with his sales target in 2022, he will indeed be given the promised bonus. Marco replied to that post with a poop emoji. Explain whether Marco is likely to successfully claim this bonus assuming he does hit the 2022 target.
(7 marks)
(d) When Elan Mask took over Tweety, he conducted mass layoffs of majority of the staff. List and explain what possible remedies these retrenched staff can claim from Tweety.
(10 marks)
(e) Sim Tia, one of the retrenched staff, was severely depressed as a result of this. She believed that Elan Mask fired her because he is sexist. As a result, she hates all men and decided to call off her wedding with her fiancĂ©, Inn Oâsen. She now wishes to sue Tweety for damages for all the resulting losses including $200,000 that was paid to the hotel for the wedding dinner. Evaluate and explain the chances of her success.
(6 marks)
Question 2:
In recent years, âfrontier tourismâ (i.e. exclusive and extreme form of adventure travel that are very expensive) has gained popularity. The crazy rich are increasingly trying high risk tourism, including space or deep sea travel. A recently founded company, Oceandoor had built a submersible vehicle, which it claims is able to bring tourists to the bottom of the seabed to explore famous ship wreckages.
(a) The founder and CEO of Oceandoor, Mr Rush, told one potential customer, Mr Rich, that his submersible is âsafer than crossing streetâ. He said, âWhile thereâs obviously risk itâs way safer than flying in a helicopter or even scuba diving. There hasnât been even an injury in 35 years in a non-military subs.â He offered the customer a greatly discounted ticket for $150,000 – a $100,000 discount on the normal fee. Believing Mr Rushâs safety guarantee, Mr Rich purchased the ticket. Subsequently, Mr Richâs son strongly opposed to this because of safety concerns. Mr Rich now thinks he made a mistake and wants a full refund of the $150,000. Outline and discuss whether he can set aside this contract.
(15 marks)
(b) Mr Rush later argued that he had very clearly stated all the risks involved in this expedition, and that Mr Rich agreed to it. Mr Rich realised that the long list of risks was written at the back of his ticket in font size 8. Explain whether your answer to Question 2 (a) will be different given this new fact.
(5 marks)
(c) Explain the requirements to establish (i) mistake and (ii) frustration as a vitiating factor in contracts.
(10 marks)
(d) Mr Rich decided not to risk his life even if he will not get refunded. Mr Rush then made an offer on Oceandoorâs Twitter for anyone to replace Mr Rich in the submersible, at an even lower price of $50,000 per ticket. After posting the tweet, Mr Rush realised that might be too low a price to offer. Discuss whether this is a valid offer.
(10 marks)
(e) Mr Bump saw the tweet and thought it was a great deal. It was always his dream to do such extreme sport but it has always been too unaffordable. He immediately tweeted a reply saying he accepts the offer. The moment he posted it, he regretted it because it was a lot of money. Apply your knowledge and cite some possible legal arguments he can make to avoid being bound to this contract.
(15 marks)
What we score:
74%
Our Writer’s CommentÂ
This assignment is designed to assess students’ understanding of business practices.
To secure an A+ grade, adhere to these guidelines and make sure your work aligns with the grading criteria:
Question 1:
(a) Contractual Elements
You need to identify the key elements of a contract: offer, acceptance, intention to create legal relations, and consideration. What the examiner might be looking for is a clear explanation of each of these and how they apply specifically to Marco and Tweetyâs situation. For example, was there a clear offer made by Tweety regarding the bonus? Did Marco accept this offer? Was there an intention from both parties for it to be legally binding? Try to frame your argument using these legal principles and tie them directly to the facts.
(b) Consideration
Here, you should explain the concept of consideration in contract law â something of value exchanged between parties. In Marcoâs case, the consideration was his meeting the 2021 sales targets. Itâs important to explain that consideration doesnât necessarily have to be monetary but can also be performance, like Marcoâs sales achievements.
(c) Reply to the Offer
Hereâs where you can get creative with explaining contract formation. Is Marcoâs poop emoji response an acceptance, rejection, or a counter-offer? You might argue that itâs not a clear acceptance, but remember to back up your claims with legal references to contract law. This part needs a strong link to cases or contract principles where communication (even informal) was pivotal.
(d) Mass Layoffs & Remedies
For this, focus on retrenchment and employment law. Look into potential claims such as severance pay, unfair dismissal, or any contractual rights the employees had. Make sure to mention key terms like âwrongful dismissalâ or âemployment contract terms.â
(e) Sim Tiaâs Situation
This is an interesting case for emotional distress and damages. Be clear that the claim for damages is unlikely to succeed unless Sim can prove that the layoffs were directly tied to some form of discrimination or that Tweety had a legal obligation not to terminate her contract. Here, the causation between the layoffs and her personal decision to cancel the wedding may be weak legally. Make sure to address both emotional and financial aspects in your evaluation.
Question 2:
(a) Setting Aside the Contract
The main issue here is misrepresentation. Was Mr. Rushâs statement about safety a misrepresentation that induced Mr. Rich into the contract? Youâll need to analyze whether this statement was fact or opinion and whether it influenced Mr. Richâs decision. Make sure to discuss whether Mr. Rich has grounds to claim rescission of the contract due to misrepresentation.
(b) Risk Disclosure
Now with the new fact that the risks were stated in tiny font at the back of the ticket, you can dive into contractual terms and the concept of incorporation by reference. Is it reasonable to expect Mr. Rich to have seen these terms? Discuss unfair terms and notice of terms, which can invalidate certain clauses.
(c) Mistake and Frustration
Clearly distinguish between the concepts of mistake (where the parties had different understandings of a fundamental fact) and frustration (where unforeseen events make performance of the contract impossible or radically different). Give examples of cases to back up these concepts.
(d) Offer Validity
This is about the elements of an offer and acceptance. You could argue that Mr. Rushâs tweet might be an invitation to treat rather than a firm offer. This means itâs not legally binding until someone accepts, but you also need to explore whether Rush can retract or modify the offer before itâs accepted.
(e) Bumpâs Dilemma
Here, you can talk about withdrawal of acceptance and cooling-off periods. Does Bump have legal grounds to retract his acceptance? Was there duress or undue influence? Also, was the contract concluded too quickly for it to be binding?
General Tips:
- Use case law: Always try to support your points with relevant case law. This shows that you understand how legal principles apply in real-life scenarios.
- Stay clear and concise: When answering legal questions, structure your answers by breaking them into manageable sectionsâdefine the concept, apply it to the facts, and then conclude. Make sure your reasoning flows logically.
- Evaluate, donât just describe: The more you can show critical thinking by evaluating both sides of an argument, the better. Show that youâre not just describing legal principles but analyzing how they apply to the facts of the case.
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