Contracts and unjust contracts
Case examples Outcome/issues of effective protection or enforcement of the law.
Implied terms /Consumer Guarantee Beale V Taylor: 2 cars welded together case. Defendant won, as buyer had seen, tried and
approved the car. s.13 of the Sale of Goods Act, 1893. Buyer awarded damages after a
series of appeals. Implied conditions of product matching conditions.
● The person supplying the good has a
right to do so- Legality
Australian Knitting Mills v Grant 1933: Idiot Dr Grant wear undies for a week straight and
gets severe dermatitis. He did not wash them before use, and there was no instructions
● The goods fit the description recommending this. The Sale of Goods Act didn’t apply, as there was no contract. The
Beale v Taylor ( 1967) precedent set in Donoghue V Stephenson was applied, where the supplier has a duty of care
to the buyer, to prevent harm from use of the product. He was awarded damages.
● The goods are of acceptable quality Astley v Austrust 1999: whether or not damages for breach of an implied term to take
reasonable care and skill in providing a service should be reduced as a result of contributory
Australian Knitting negligence. Astley (senior solicitor of Austrust) accused of provision of negligent legal advice.
● The goods are fit for the purpose Mills v Grant 1933 After a process of appeals, concluded that, although Austrust was guilty of contributory
negligence, finding is applicable only to the assessment of damages in tort and not for
breach of contract.
● The goods conform to the sample
Services
● Reasonable care
● Timely provision of service
, Astley v Austrust 1999
Exclusion Clauses Thornton v Shoe Lane Parking 1971: Thornton drove car to car park, in which ticket and sign
said owners wouldn’t be liable for any damages. Thornton had an accident, sought damages
from SLP. SLP argued ticket=contract which referred to terms written on premises. Thornton
● Some terms can be inserted in a contract Thornton v Shoe Lane argued that that introduces new terms after ticket bought and money transferred. Court
to restrict liability- In a written contract Parking found exclusion clause not successfully in contract. Offer was contained within notice at the
the buyer must check all clauses. In entrance, before Thornton drove in.
other types of contracts the seller must:
- Bring the clause to the attention of Wet n Wild (One Cube)
News Years eve Wet n Wild case: Wet n Wild hosting a music festival, which they postponed shortly before
the buyer the event. New South Wales Fair Trading Minister Stuart Ayres said it was unacceptable for
- Ensure the clauses do not breach the organisers to leave ticket holders for tonight "high and dry". ACL conditions “require
ACL consumers to receive a full refund when services are not provided, if they so choose.”
Unconscionable contracts/unconscionable Hawker Pacific v Helicopter Charter 1991: HC paid Hawker to repaint a helicopter. Issues
conduct with paint job caused negotiations with price and the job redone. When HC came to collect
helicopter and signed agreement Hawker made, where it was at a cheaper price and
released Hawker from any liability relating to it. HC believed Hawker would prevent them
taking helicopter unless they agreed. The trial judge decided in favour of HC and, based on
an arbitrators report about the repainting work performed, awarded damages.Hawker
Under the current ACL sections 20-21 appealed, failed.
includes fines as penalties as well as banning
people from running businesses for a period
HP case 2013: HP pays $3 million for misleading consumers and retailers. It made
Case examples Outcome/issues of effective protection or enforcement of the law.
Implied terms /Consumer Guarantee Beale V Taylor: 2 cars welded together case. Defendant won, as buyer had seen, tried and
approved the car. s.13 of the Sale of Goods Act, 1893. Buyer awarded damages after a
series of appeals. Implied conditions of product matching conditions.
● The person supplying the good has a
right to do so- Legality
Australian Knitting Mills v Grant 1933: Idiot Dr Grant wear undies for a week straight and
gets severe dermatitis. He did not wash them before use, and there was no instructions
● The goods fit the description recommending this. The Sale of Goods Act didn’t apply, as there was no contract. The
Beale v Taylor ( 1967) precedent set in Donoghue V Stephenson was applied, where the supplier has a duty of care
to the buyer, to prevent harm from use of the product. He was awarded damages.
● The goods are of acceptable quality Astley v Austrust 1999: whether or not damages for breach of an implied term to take
reasonable care and skill in providing a service should be reduced as a result of contributory
Australian Knitting negligence. Astley (senior solicitor of Austrust) accused of provision of negligent legal advice.
● The goods are fit for the purpose Mills v Grant 1933 After a process of appeals, concluded that, although Austrust was guilty of contributory
negligence, finding is applicable only to the assessment of damages in tort and not for
breach of contract.
● The goods conform to the sample
Services
● Reasonable care
● Timely provision of service
, Astley v Austrust 1999
Exclusion Clauses Thornton v Shoe Lane Parking 1971: Thornton drove car to car park, in which ticket and sign
said owners wouldn’t be liable for any damages. Thornton had an accident, sought damages
from SLP. SLP argued ticket=contract which referred to terms written on premises. Thornton
● Some terms can be inserted in a contract Thornton v Shoe Lane argued that that introduces new terms after ticket bought and money transferred. Court
to restrict liability- In a written contract Parking found exclusion clause not successfully in contract. Offer was contained within notice at the
the buyer must check all clauses. In entrance, before Thornton drove in.
other types of contracts the seller must:
- Bring the clause to the attention of Wet n Wild (One Cube)
News Years eve Wet n Wild case: Wet n Wild hosting a music festival, which they postponed shortly before
the buyer the event. New South Wales Fair Trading Minister Stuart Ayres said it was unacceptable for
- Ensure the clauses do not breach the organisers to leave ticket holders for tonight "high and dry". ACL conditions “require
ACL consumers to receive a full refund when services are not provided, if they so choose.”
Unconscionable contracts/unconscionable Hawker Pacific v Helicopter Charter 1991: HC paid Hawker to repaint a helicopter. Issues
conduct with paint job caused negotiations with price and the job redone. When HC came to collect
helicopter and signed agreement Hawker made, where it was at a cheaper price and
released Hawker from any liability relating to it. HC believed Hawker would prevent them
taking helicopter unless they agreed. The trial judge decided in favour of HC and, based on
an arbitrators report about the repainting work performed, awarded damages.Hawker
Under the current ACL sections 20-21 appealed, failed.
includes fines as penalties as well as banning
people from running businesses for a period
HP case 2013: HP pays $3 million for misleading consumers and retailers. It made
