MLL215-commercial-law-exam-notes-won-top-student-in-the-subject-97-hd-and-scored-100-for-the-exam

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These are my detailed notes for MLL215. This is all I used for the exam. My mark was 97 HD for the subject and I won the Harwood Andrews Lawyers Prize for Top Student in Commercial Law. I note I scored 100% in the exam (only lost those 3 marks in an assignment). These notes are comprehensive and integrate everything learnt in the subject, including the prescribed readings from the textbook, lecture notes, tutorial answers, case summaries, etc. I have also included a "guide to answering problems" at the end of each topic which gives you step-by-step instructions on how to answer each type of problem EXAM NOTES  Contents AGENCY: RATIFICATION .................................................................................................................................................................... 5 INTRODUCTION ............................................................................................................................................................................ 5 PURPORTING TO ACT FOR P ......................................................................................................................................................... 6 P’S COMPETENCE ......................................................................................................................................................................... 6 WHO CAN RATIFY ......................................................................................................................................................................... 7 ACT OF RATIFICATION .................................................................................................................................................................. 7 COMMUNICATION OF RATIFICATION .......................................................................................................................................... 8 RATIFICATION BY ACQUIESCENCE AND ESTOPPEL ....................................................................................................................... 9 MATERIAL FACTS .......................................................................................................................................................................... 9 RATIFICATION OF WHOLE .......................................................................................................................................................... 10 LIMITS TO RATIFICATION ........................................................................................................................................................... 10 AGENCY BY NECESSITY .................................................................................................................................................................... 13 INTRODUCTION .......................................................................................................................................................................... 13 DOCTRINE OF UNDISCLOSED PRINCIPAL ........................................................................................................................................ 14 INTRODUCTION .......................................................................................................................................................................... 14 RIGHTS AND OBLIGATIONS ........................................................................................................................................................ 14 ELECTION ................................................................................................................................................................................... 16 LIMITATIONS .............................................................................................................................................................................. 16 RIGHTS AND OBLIGATIONS OF P, TP AND 17 INTRODUCTION .......................................................................................................................................................................... 17 DUTIES OF AGENTS .................................................................................................................................................................... 17 DUTIES OF PRINCIPALS AND RIGHTS OF AGENTS ....................................................................................................................... 21 AGENT’S LIABILITY TO TP ........................................................................................................................................................... 23 P’S LIABILITY TO 24 SETTLEMENT .............................................................................................................................................................................. 25 GUIDE TO AGENCY PROBLEM-SOLVING .......................................................................................................................................... 27 CONTRACTS FOR SALE OF GOODS .................................................................................................................................................. 31 GOODS ACT 1958 ....................................................................................................................................................................... 31 GENERAL .................................................................................................................................................................................... 31 PROPERTY .................................................................................................................................................................................. 32 GOODS ....................................................................................................................................................................................... 34 CATEGORIES OF GOODS ........................................................................................................................................................ 35 MONEY CONSIDERATION ........................................................................................................................................................... 37 TRANSFER OR AGREEMENT TO TRANSFER THE PROPERTY IN THE GOODS ............................................................................... 38 CONTRACT FOR WORK DONE AND MATERIALS SUPPLIED ......................................................................................................... 39 HIRE PURCHASE ......................................................................................................................................................................... 41 BAILMENT .................................................................................................................................................................................. 41 GUIDE TO SALE OF GOODS V CONTRACT FOR WORK DONE AND MATERIALS SUPPLIED ............................................................... 42 TRANSFER OF PROPERTY UNDER THE GOODS ACT 1958 ................................................................................................................ 43 INTRODUCTION .......................................................................................................................................................................... 43 UNASCERTAINED GOODS ........................................................................................................................................................... 44 ASCERTAINED GOODS ................................................................................................................................................................ 45 RULES FOR PASSING OF PROPERTY S 23 .................................................................................................................................... 46 RULE 1: SPECIFIC GOODS IN A DELIVERABLE STATE .............................................................................................................. 46 RULE 2: SPECIFIC GOODS NOT A DELIVERABLE STATE .......................................................................................................... 48 RULE 3: SPECIFIC GOODS TO BE WEIGHED, MEASURED OR TESTED TO ASCERTAIN PRICE .................................................. 50 RULE 4: GOODS DELIVERED ON APPROVAL OR ON SALE OR RETURN .................................................................................. 51 RULE 5: UNASCERTAINED OR FUTURE GOODS ..................................................................................................................... 53 RISK ............................................................................................................................................................................................ 56 NEMO DAT S 59 EXCEPTIONS TO NEMO DAT ....................................................................................................................................................... 60 ESTOPPEL S 27 ....................................................................................................................................................................... 60 MERCANTILE AGENT SS 67-68 ............................................................................................................................................... 62 VOIDABLE TITLE S 29 ............................................................................................................................................................. 64 SELLER OR BUYER IN POSSESSION SS 30-1 ............................................................................................................................ 65 POWER OF SALE COURT ORDER S 26 .................................................................................................................................... 67 GUIDE TO PASSING OF PROPERTY PROBLEM-SOLVING .................................................................................................................. 68 WHERE GOODS ARE SPECIFIC .................................................................................................................................................... 68 WHERE GOODS ARE UNASCERTAINED ....................................................................................................................................... 68 TRANSFER OF TITLE BY NON-OWNER ........................................................................................................................................ 69 IMPLIED TERMS UNDER THE GOODS ACT 1958 .............................................................................................................................. 70 GOODS ACT OR ACL?.................................................................................................................................................................. 70 INTRODUCTION .......................................................................................................................................................................... 71 TITLE – S 17 ................................................................................................................................................................................ 75 RIGHT TO SELL S 17(A) - CONDITION: .................................................................................................................................... 75 QUIET POSSESSION S 17(B) – WARRANTY ............................................................................................................................. 76 FREE FROM ENCUMBRANCE S 17(C) – 77 CORRESPOND WITH DESCRIPTION – S 18 – implied condition .................................................................................................. 78 1) SALE BY DESCRIPTION: ...................................................................................................................................................... 78 2) WHAT WORDS: .................................................................................................................................................................. 79 3) CORRESPOND: ................................................................................................................................................................... 82 FITNESS FOR PURPOSE – S 19(A) – implied condition ................................................................................................................ 82 1) MAKES KNOWN PARTICULAR PURPOSE ............................................................................................................................ 83 2) RELIANCE ON SELLER’S SKILL AND JUDGEMENT ............................................................................................................... 84 3) COURSE OF SELLER’S BUSINESS ........................................................................................................................................ 86 4) PATENT OR TRADE NAME EXCEPTION .............................................................................................................................. 87 BREACH ................................................................................................................................................................................. 87 MERCHANTABLE QUALITY S 19 (b) – implied condition ............................................................................................................. 88 1) SALE BY DESCRIPTION: ...................................................................................................................................................... 88 2) DEALS IN GOODS OF THAT DESCRIPTION .......................................................................................................................... 90 3) PRIOR EXAMINATION ........................................................................................................................................................ 90 BREACH ................................................................................................................................................................................. 90 SAMPLE S 20 – implied condition ............................................................................................................................................... 92 GUIDE TO IMPLIED TERMS GOODS ACT PROBLEM-SOLVING ......................................................................................................... 94 CONSUMER GUARANTEES UNDER THE 96 GOODS ACT OR ACL?.................................................................................................................................................................. 96 INTRODUCTION .......................................................................................................................................................................... 96 CONSUMER ................................................................................................................................................................................ 99 TITLE S 51 ................................................................................................................................................................................. 100 QUIET POSSESSION S 52 ........................................................................................................................................................... 101 UNDISCLOSED SECURITIES S 53 ................................................................................................................................................ 102 ACCEPTABLE QUALITY S 54 ...................................................................................................................................................... 102 FITNESS FOR DISCLOSED PURPOSE S 105 SUPPLY BY DESCRIPTION S 56 .................................................................................................................................................. 107 SUPPLY BY SAMPLE OR DEMONSTRATION S 57 ....................................................................................................................... 107 REPAIRS AND SPARE PARTS S 58 .............................................................................................................................................. 108 EXPRESS WARRANTIES S 59 ..................................................................................................................................................... 109 SUPPLY OF SERVICES SS 60-62 ................................................................................................................................................. 109 GUARANTEES NON-EXCLUDABLE S 64 ..................................................................................................................................... 111 LIMITATION OF LIABILITY PERMITTED S 64A & 64A(2) ............................................................................................................ 111 REMEDIES PART 5-2 ................................................................................................................................................................. 112 GUIDE TO CONSUMER GUARANTEES PROBLEM-SOLVING ........................................................................................................... 113 INSURANCE: PRE-CONTRACTUAL .................................................................................................................................................. 115 INTRODUCTION ........................................................................................................................................................................ 115 UTMOST GOOD FAITH s 13 ...................................................................................................................................................... 118 CONTRACT FORMATION .......................................................................................................................................................... 123 DUTY OF DISCLOSURE .............................................................................................................................................................. 127 MISREPRESENTATION .............................................................................................................................................................. 139 LIFE INSURANCE ....................................................................................................................................................................... 143 GUIDE TO PRE-CONTRACTUAL INSURANCE PROBLEM-SOLVING .................................................................................................. 146 MISREPRESENTATION .............................................................................................................................................................. 146 NON-DISCLOSURE .................................................................................................................................................................... 146 INSURANCE: POST-CONTRACTUAL ............................................................................................................................................... 148 INTRODUCTION ........................................................................................................................................................................ 148 EXPIRATION, RENEWAL AND CANCELLATION .......................................................................................................................... 151 OTHER PARTIES ........................................................................................................................................................................ 153 CLAIMS ..................................................................................................................................................................................... 155 BREACH BY INSURED OF TERM OF POLICY ............................................................................................................................... 157 PROFESSIONAL INDEMNITY POLICIES ................................................................................................................................. 159 FRAUDULENT CLAIMS ......................................................................................................................................................... 159 LOSS FALLS WITHIN POLICY ................................................................................................................................................. 163 SUMMARY OF CHANGES FROM ICAA ...................................................................................................................................... 163 GUIDE TO POST-CONTRACTUAL INSURANCE PROBLEM-SOLVING ............................................................................................... 165 CLAIMS ..................................................................................................................................................................................... 165   AGENCY: RATIFICATION INTRODUCTION General: - Bedford Insurance Co Ltd v Instituto de Resseguros do Brasil o Unauthorised act by an agent, whether lawful or unlawful, is capable of being ratified o Cannot ratify illegal transaction - Possible where A exceeded authority or had no authority at all (Firth v Staines) - Once ratified, P cannot withdraw 5 preconditions (Firth v Staines): - 1) A must have purported to act for P - 2) At time of A’s act, P must have been competent (Firth v Staines) - 3) Must ratify within reasonable time (Life Savers Australasia v Frigmobile Pty Ltd) - 4) P must know all material facts - 5) P must ratify whole transaction Retrospective application: - Ratification is retrospective (Taylor v Smith) - Once ratified, it is valid and effectual from time of agent’s act rather than time of ratification (Danish Mercantile Co Ltd v Beaumont) - Treated as though agent had authority at the time (Irvine v Union Bank of Australia) - Ratification must take place at a time when the ratifier might himself have lawfully done the act he is ratifying (Bird v Brown) o This has been criticized as too wide. See Bolton Partners Ltd v Lambert instead. Benefits to principal: Hagedorn v Oliverson o Not bound until ratification o Has the option to adopt or not Subject to ratification: - Not valid until ratification communicated to T by P (Watson v Davies) PURPORTING TO ACT FOR P General: - A must have purported to act for P (Byas v Miller) - Undisclosed principal cannot ratify (Trident General Insurance v McNiece) Identity of P: - Keighley, Maxted & Co v Durant o A authorised to buy wheat at a lower price. Bought at a higher price without disclosing it was for undisclosed P. o Where A does not purport to act for P, or appears to act for himself, P cannot ratify o P need not be named, but must have reasonable designation of who will be bound (P must be known or ascertainable( description) at time of contract (Lyell v Kennedy)  Potential beneficiary not an ascertainable P (Trident General Insurance v McNiece Bros) Fraud: - Irrelevant whether A, in assuming to act for P, has fraudulent intent (Tiedemann and Ledermann Freres) - Forgery not capable of ratification (Brook v Hook) o Exception: Can simply make a new agreement with consideration (Rowe v B & R Nominees Pty Ltd) o P’S COMPETENCE General: