Reference no: EM131669132 , Length: word count:3000

ASSIGNMENT QUESTIONS -

Question 1 -

Booth, a merchant banker, paid his friend Hains, a director of several Australian listed companies, $18,000 for "inside information" which he intended to use in determining how to invest his client's funds. Insider trading is a criminal offence pursuant to the Corporations Act 2001 (Cth), s 100G. Hains has since failed to provide any information to Booth and has indicated that he has no intention of ever doing so. 

Advise Booth as to whether he can recover the $18,000 already paid.

Questions to consider in answering Question 1:

What is the purpose of the contract?

Is it contrary to public policy?

Does it fall within one of the classes of contract illegal at common law?

Will Booth be able to recover his money?

Are the parties in "in pari delicto"?

Question 2 -

David and Cathy intend purchasing a restaurant business from a local entrepreneur. They wish to ensure that he cannot set up a competing restaurant or café in the area within 12 months after the purchase or they believe that the investment will not be viable. 

Advise David and Cathy as to how far they can go with respect to restraining the vendor's freedom of trade. 

What if they go too far?

Questions to consider in answering Question 2:

What area of law is the question concerned with?

Is a contract in restraint of trade valid or void?

If a contract in restraint of trade is prima facie void, what does this mean?

How can David and Cathy protect themselves then? What factors determine whether a restraint is reasonable?

What is the effect on David and Cathy if the clause they insert is not reasonable?

See Nordenfelt v Maxim Nordenfelt Guns and Ammunition

Question 3 -

Olivia is a keen gardener. She is particularly proud of the large apricot tree in her back yard, the branches of which overhang her barbeque area and provide her with shade. Olivia awakes one morning, however, to discover that her new neighbours have lopped off almost half the branches of her apricot tree, hoping to get more light in their main bedroom. 

Olivia is furious and seeks your legal advice.

Questions to consider when answering Question 3:

Is the damage to person or to property?

In light of the harm suffered by P, what is the most appropriate action? Trespass to land?

Can Olivia show a direct interference with her lawful possession of land?

Does there have to be an entry on to her land for a trespass to arise?

Did she consent to the lopping of the tree?

Do the neighbours have any defences available to them for their actions?

Assessment Criteria - Written presentation

• Identify the issues of the problem
• Explain the relevant law relating to the problem
• Discuss the potential legal arguments relating to the problem
• Summarise a balanced conclusion to the issues of the problem.