Commercial Law

IMPORTANT: required to use legal citation and referencing – not the Harvard referencing style

Part A
Freedom of contract does not commend itself for moral reasons only; it is also an eminently practical principle. It is the inevitable counterpart of the free enterprise system .
(Kessler in Contracts of Adhesion: Some thoughts about freedom of contract [1943] Colum L. R 630)
In view of the above statement explain with examples why the concept of freedom of contract is under severe attack today.
(You may allocate 1200 words to this question)

Part B
In January 2001 Ben was 17 years old and about to begin his first year of a Bachelor of Commerce degree at Sunshine University. Ben lives a fair distance from the University. To get to the university it would take him about 1 hour and 20 minutes by train. Ben isn t particularly worried as he knows that as soon as he gets his licence it will take him only forty minutes. Only a month away from turning 18 and obtaining his licence Ben becomes very excited when he sees his dream car, a Mitsubishi Mirage with tinted windows, 15 inch alloy rims, CD player and a sunroof advertised for sale at Crazy Ted s dealership for $15,990 “ payable half now and the rest in six months. So Ben, equipped with his savings of $8,000 rushes down to Crazy Ted s and signs the contract.
A few months later Ben, after having obtained his licence, decides that University is just too much. He decides that he will spend the rest of the year driving around Australia in his new Mitsubishi Mirage.
The time for payment of the balance on the car comes around and Ben doesn t have the funds. What s more Ben refuses to pay on the grounds that when he entered into the contract he was a minor.
Jane is 18 and also starting uni. She is a rev head who decides to get the same model car as Ben, but from Trusty Motors Ltd whose ads on TV say no deposit finance and nothing to pay for six months. Trusty refuses to supply Jane because they consider her a bad credit risk as she has just lost her part-time job. Jane is sure she will get another job before repayments will be due under the terms of Trusty s no repayments for six months offer.
Jane is angry. A student in MLC 101, Jane tells Trusty she has accepted their offer and that she ll have them for breach of contract.
Discuss whether or not Crazy Ted enforce the contract against Ben and also Jane s chances of succeeding in an action for breach of contract against Trusty.
(You may allocate 800 words to this question)

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