Buslaw

Q.1. CONTRACT LAW (10 MARKS)

Natalie is a famous morning TV presenter and often says silly things on air that gets her in trouble.

One morning she called her local butcher “Mr. Mancini of North Turramurra” a ‘”lying cheat”. Mr. Mancini had a strong case for ‘Defamation’ against Natalie but agreed that if Natalie offered him a signed photo of herself he would not take legal action against her. Mr. Mancini made it clear to Natalie that the most important thing was her genuine signature and it was not really important if the autograph was on a photograph or not. Natalie offered Mr. Mancini the signed photograph and Mr. Mancini accepted the offer agreed he would not sue Natalie for her comments.

Mr. Mancini wanted to auction off the signed photograph for charity and raise at least $1000 for Westmead Children’s hospital. On the day the signed photo was to be delivered to Mr. Mancini Natalie was running late for an appointment and did not have a photograph she could sign. As Natalie rushed out the office to make her appointment she told her assistant to just sign any scrap of paper and send it to Mr. Mancini.

Mr. Mancini is disappointed with the scrap of paper with the scribble on it that he received from Natalie but decides to try and auction it off anyway. Ms. Jenkins is a big fan of Natalie and purchases the signature for $460. It is later discovered that the signature is a fake.

Based on the above facts and your knowledge of contract law, answer the following questions. Do not discuss tort law (including defamation), consumer protection law, property law or agency law.

1. Does a contract exist between Mr. Mancini and Natalie? Explain your answer using case law where appropriate.

2. Identify the warranty and the condition stated in the contract between Natalie and Mr. Mancini. Explain your answer using case law where appropriate.

3. How do the rules of contract law work in relation to an auction? Based on the above facts, who is...