HA2027 Group Assignment T1 2026

Group Assignment

Group Assignment Guidelines and Specifications

Purpose:

The Group Assignment aims to provide students with an opportunity to work in a collaborative environment in solving two case problems by citing the relevant legal rules and cases and applying these to the facts of the case.

Students are to form groups, with a minimum of 2 and a maximum of 4 students per group. The assignment consists of a 2,000-word written report.

Instructions: Please read and re-read carefully to avoid mistakes.

Group Report

1. This group assignment consists of 3 parts. Part A is a question on Contract Law, Part B is a question on Tort and Negligence Law and Part C is a question involving Corporations Law. All questions must be answered.
2. Question A is worth 20 marks, while Question B and Question C are worth 10 marks each.
3. The total word limit for the group report is 2,000 words (+/- 10% allowed)

• Word limit for Question A – 800 words
• Word limit for Question B – 600 words
• Word limit for Question C – 600 words

Part A: Contracts Law Question (20 marks)

Emily, a 52-year-old widow with limited English proficiency, has recently become more involved in her community group. She regularly attends the local community centre and often discusses personal matters with Coordinator Mark, the centre's manager. Emily mentioned to him that she was considering selling her home and moving to a smaller unit. Coordinator Mark mentioned that a small property next to the community centre would soon be available, and that he was looking for a new place to live.

Emily immediately offered to sell her home to Mark for $380,000, based on a neighbor’s comment that a nearby property had sold for $750,000 — not realizing this was only half of its actual market value. Mark knew Emily was unlikely to reconsider once she had made a decision.

Meanwhile, Emily's 16-year-old daughter, Sophie, is a talented swimmer. Several contracts have been entered into:

1. Sports Management Agreement – Emily signed a three-year contract with Prime Sports Agency Pty Ltd, giving them exclusive rights to manage Sophie's sponsorships, endorsements, and competition entries.
2. Endorsement Agreement – Emily signed a two-year contract with Wave Wear Swim Apparel Pty Ltd, under which Sophie must wear only Wave Wear products. In return, Sophie receives free swim gear and annual payments of $35,000. The contract provides that if Sophie breaches exclusivity, she must repay the value of the supplied equipment and pay additional damages.
3. Competition Entry Agreement – Sophie, without Emily's knowledge, signed a short-term agreement with the National Junior Swimming League to participate in its upcoming national competitions.

After one year, Emily and Sophie are dissatisfied with the Prime Sports and Wave Wear agreements and wish to terminate them, claiming they are unfair and not in Sophie's best interests.

What legal rights do Emily and Sophie have to set aside or terminate the various agreements, and what factors will a court consider in determining whether those agreements are enforceable?

Part B: Negligence Law question (10 marks)

A group of accountants has recently established a professional partnership known as Carter Tax Solutions, specializing in Australian income tax advisory services. The firm provides tax planning and compliance advice to individual and business clients.

Mr. Ethan Walker, a client of the firm, approaches Carter Tax Solutions seeking professional advice on lawful ways to minimize his tax liability. After reviewing his financial circumstances, the firm provides detailed tax minimization strategies. Relying on this advice, Ethan pays the agreed professional fee and implements the recommendations.

Subsequently, the Australian Taxation Office conducts an audit of Ethan's affairs and determines that the advice was based on an incorrect interpretation of relevant tax legislation. As a result, Ethan becomes liable to pay a substantial amount of unpaid tax, together with interest and penalties, totaling $950,000. Ethan claims that he relied entirely on the professional advice provided by Carter Tax Solutions and would not have acted otherwise.

What legal liability, if any, does Carter Tax Solutions have to Ethan under the law of negligence, and what factors will a court consider in determining duty of care, breach, causation, and the appropriate remedies?

Part C: Corporation Law Question (10 marks)

Arjun, Meera, and Tashi plan to establish a premium dessert business specializing in luxury event catering. Arjun and Meera each intend to invest $15,000 but prefer not to be involved in daily operations, although they still want a say in major business decisions. Tashi has extensive culinary experience but lacks capital and will manage the day-to-day operations.

Meanwhile, Tashi's cousin, Rohan, offers to invest $60,000 in the venture. He expects a regular financial return on his investment but does not wish to participate in management. However, he wants some level of control over how his funds are utilised.

The group seeks advice on the most suitable legal structure for their business and the legal implications of their chosen structure, particularly in relation to control, liability, and profit distribution.

What is the most appropriate business structure for this venture, and why is this structure preferable compared to other alternatives considering the parties' intentions regarding management, liability, and financial interests?