Table Of Content

N Concise Australian Commercial Law CCAACCLL66______BBooookk..iinnddbb 11 2277--NNoovv--2200 1155::5511::4455 Thomson Reuters (Professional) Australia Limited 19 Harris Street Pyrmont NSW 2009 Tel: (02) 8587 7000 [email protected] http:// legal.thomsonreuters.com.au/ For all customer inquiries please ring 1300 304 195 (for calls within Australia only) INTERNATIONAL AGENTS & DISTRIBUTORS NORTH AMERICA ASIA PACIFIC Thomson Reuters Thomson Reuters Eagan Sydney United States of America Australia LATIN AMERICA EUROPE Thomson Reuters Thomson Reuters São Paulo London Brazil United Kingdom CCAACCLL66______BBooookk..iinnddbb 22 2277--NNoovv--2200 1155::5511::4466 Concise Australian Commercial Law CLIVE TURNER LLB (B’ham), PhD (ANU) Sometime Associate Professor of Law University of Queensland JOHN TRONE BA, LLB, PhD (UQ) Research Fellow Curtin Law School Curtin University ROGER GAMBLE LLB (Melb), LLM (Mon), Dip Ed (Rus) Affiliate Department of Business Law and Taxation Monash Business School, Monash University SIXTH EDITION LAWBOOK CO. 2021 CCAACCLL66______BBooookk..iinnddbb 33 2277--NNoovv--2200 1155::5511::4466 Published in Sydney by Thomson Reuters (Professional) Australia Limited ABN 64 058 914 668 19 Harris Street, Pyrmont, NSW 2009 Fifth edition revised reprint ......... 2019 ISBN: 9780455244686 © 2021 Thomson Reuters (Professional) Australia Limited This publication is copyright. Other than for the purposes of and subject to the conditions prescribed under the Copyright Act, no part of it may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission. Inquiries should be addressed to the publishers. All legislative material herein is reproduced by permission but does not purport to be the official or authorised ver- sion. It is subject to Commonwealth of Australia copyright. The Copyright Act 1968 permits certain reproduction and publication of Commonwealth legislation. In particular, s 182A of the Act enables a complete copy to be made by or on behalf of a particular person. For reproduction or publication beyond that permitted by the Act, permission should be sought in writing. Requests should be submitted online at www.ag.gov.au/c ca, faxed to (02) 6250 5989 or mailed to Commonwealth Copyright Administration, Attorney-G eneral’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600. Product Developer: Vickie Ma Edited and typeset by Newgen KnowledgeWorks Printed by Ligare Pty Ltd, Riverwood, NSW This book has been printed on paper certified by the Programme for the Endorsement of Forest Certification (PEFC). PEFC is committed to sustainable forest management through third party forest certification of responsibly man- aged forests. For more info: http:// www.pefc.org CCAACCLL66______BBooookk..iinnddbb 44 2277--NNoovv--2200 1155::5511::4466 This one’s for Gab Gab - RG CCAACCLL66______BBooookk..iinnddbb 55 2277--NNoovv--2200 1155::5511::4466 CCAACCLL66______BBooookk..iinnddbb 66 2277--NNoovv--2200 1155::5511::4466 Preface The sixth edition of Concise Australian Commercial Law (CACL) has two basic objectives. The first is to provide students with a general understanding of the legal environment of business and to expose them to the language and perspectives of legal professionals, regulators and others with whom they will increasingly be required to interact in their professional lives. The second is to discuss the main commercial law topics in a way that balances the need for clarity, accessibility and simplicity with the need for the text to be rigorous, interesting, relevant and up to date. Further, when writing the text or selecting cases, legislation and other material we have tried to keep in mind the needs and desires of non-l aw students many of whom are coming to a law unit for the first time and some of whom are coming from countries that do not have a common law legal system nor a Westminster- style parliamentary democracy. The sixth edition has been updated to incorporate the many changes to the law that have occurred since the fifth edition was written. There have been a number of important High Court and state and federal appellate court decisions – for example, Australian Securities and Investment Commission v Kobelt, Moore v Scenic Tours, Queensland v Masson, Commonwealth v Love and Thoms, Australian Securities and Investment Commission v King, Australian Securities and Investment Commission v Cassimatis, Australian Competition and Consumer Commission v Kimberly- Clark – in contract, torts, consumer protection and company law and there have been significant legislative amendments to the Australian Consumer Law and the Corporations Act. To ensure this edition is a complete teaching and learning package, there are diagrams, flowcharts and tables as well as a revised set of tutorial activities at the end of each chapter, including a new and comprehensive set of basic and more advanced comprehension-t ype questions that systematically cover all the main issues in the chapter. These comprehension-t ype questions have been included because, during the life of this edition, it is very likely that a considerable amount of teaching and learning will be done online. Although individual lecturers and tutors will have their own bag of online tools, it might be beneficial to have a standard set of questions that (a) direct students to the most relevant issues and (b) provide students with a secure launching pad from which to attempt the hypothetical problems. There is an introductory section offering advice on how to approach the assessment tasks, particularly the hypothetical problem question (there are three extended answer guides, two of which explain and follow the IRAC method and one of which adopt a more free- flowing approach), research assignments and multiple-c hoice questions. There is a glossary and the relevant legislation is located in the Appendix. Extensive resources are available to lecturers. Finally, unlike any of the previous editions of CACL, this edition was written against the backdrop of two cataclysmic events, both of which have relevance to students of the law. First, the COVID-1 9 pandemic – a time of masks, social distancing and more or less severe lockdowns that kept us at or near home for most of 2020. The pandemic fundamentally changed our lives and has forced us to reconsider how we do business (and, of course, how we teach and learn). It has also already changed the legal landscape (from the way the federation works (who is responsible for borders and boat arrivals?), to the doctrine of frustration (can I be excused from contractual obligations because of COVID-1 9?) and the way we deal with business insolvency (to what extent can I take refuge from unsecured creditors?)). The list will grow. Second, the CCAACCLL66______BBooookk..iinnddbb 77 2277--NNoovv--2200 1155::5511::4466 Concise Australian Commercial Law viii extraordinary US election campaign, culminating (at the time of writing this Preface) with the incumbent President losing the election but refusing to concede defeat, arguing, without credible evidence, via Twitter and in various courts, that the election count was corrupt and that he, in fact, won. It is a lesson for us all, but particularly students of the law, that democracy – and the rule of law – is very fragile. My thanks to Vickie Ma, the product developer at Thomson Reuters, and to the editors at Newgen, particularly Padmapriya Karthik. I would also like to thank two of my colleagues at BLT – Rebecca Neophitou who, conscientiously and enthusiastically, checked the draft, chapter by chapter, and provided me with invaluable advice and Eugenio Vergara Marshall who provided feedback on many occasions during the life of the fifth edition. Continuing thanks to Clive Turner and John Trone for their permission to adapt Australian Commercial Law. ROGER GAMBLE Affiliate Monash University November 2020 CCAACCLL66______BBooookk..iinnddbb 88 2277--NNoovv--2200 1155::5511::4466 Contents Preface .....................................................................................................................................................................vii Table of Cases ...........................................................................................................................................................xi Table of Statutes ......................................................................................................................................................xix Table of Abbreviations ..........................................................................................................................................xxix Glossary ..............................................................................................................................................................xxxiii Assessment Tasks in Commercial Law ................................................................................................................xxxix PART 1: INTRODUCTION....................................................................................................................................1 Chapter 1: An Introduction to Law and the Australian Legal System ........................................................3 PART 2: LAW OF CONTRACT ............................................................................................................................51 Chapter 2: Introduction to the Law of Contract .........................................................................................53 Chapter 3: Offer and Acceptance ...................................................................................................................61 Chapter 4: Intention to Create Legal Relations ...........................................................................................89 Chapter 5: Consideration, Promissory Estoppel and Formalities .............................................................97 Chapter 6: Contractual Capacity ..................................................................................................................115 Chapter 7: Genuine Consent .........................................................................................................................123 Chapter 8: Legality of Object ........................................................................................................................147 Chapter 9: Contents and Interpretation of the Contract .........................................................................165 Chapter 10: Operation of the Contract ........................................................................................................197 Chapter 11: Termination and Breach of a Contract ...................................................................................205 Chapter 12: Remedies ....................................................................................................................................225 PART 3: CONSUMER PROTECTION ................................................................................................................241 Chapter 13: Consumer Protection ................................................................................................................243 PART 4: TORTS .................................................................................................................................................321 Chapter 14: Law of Torts ................................................................................................................................323 PART 5: BUSINESS RELATIONSHIPS .............................................................................................................369 Chapter 15: Law of Agency .............................................................................................................................373 Chapter 16: Law of Partnerships ...................................................................................................................391 Chapter 17: Corporations Law ......................................................................................................................425 CCAACCLL66______BBooookk..iinnddbb 99 2277--NNoovv--2200 1155::5511::4466