Business Law Assignment: Utilizing Ilac To Evaluate The Business Cases


Assessment Task
Question 1: Mojo Beverage placed the following advertisement in a local newspaper on 25 January:

‘Come one, come all! Fishermen and women of Lake Tranquil. We are offering to pay $100,000 to any person who catches Lord Harry, a trout which we have tagged and released into the lake.’

The following day was the Australia Day holiday. Lake Tranquil was crowded with people fishing both from the bank and from boats. At about lunch time, a rumour spread among the people on the bank that there had been an error in the advertisement: that the true amount should have been $1,000 and that Mojo Beverage had announced that the prize would be the lower amount. The rumour was in fact true. Ben heard this rumour from the stranger fishing beside him, minutes before catching Lord Harry. A Mojo Beverage representative was on hand to certify the catch before Lord Harry was released back into the lake, but did not say anything about the amount of the prize.

Ben is claiming that Mojo Beverage owes him $100,000.

Advise Mojo Beverage, explaining applicable legal principles and citing relevant authorities.

Question 2: (a) Dorper Sheep Sellers Pty Ltd was negotiating the sale of a number of dorper sheep to a firm called Livestock Brokers, which intended to on-sell the sheep. On 1 June Dorper Sheep Sellers sent a letter to Livestock Brokers, setting out the number of sheep for sale and the price per head. It asked Livestock Brokers to reply within 14 days.

Livestock Brokers sent a letter by reply dated 6 June, inquiring whether the sale could be financed on the ‘usual terms’. Dorper Sheep Sellers did not reply.

On 14 June, at the opening of business, Livestock Brokers sent a fax stating: ‘We accept your offer of 1 June for the sale of sheep’. The same day Dorper Sheep Sellers faxed back, saying: ‘You’re too late. We’re just in the process of selling the stock to another purchaser. Formalities will be completed by tomorrow’.

Advise Livestock Brokers as to the rights and liabilities of the parties in the light of the commercial interactions taken place between them.

(b) Presume in (a) above Livestock Brokers sent the fax on 14 June but because of a transmission error Dorper Sheep Sellers did not receive it. Advise Livestock Brokers under these circumstances.


Answer 1
Issue: In the case law that is provided in this business law assignment the issue is whether Ben can claim the amount of $100,000 from Mojo Beverages or not?

Relevant rule: Two fundamental ideas in contract law are offer and invitation to treat. An invitation to treat occurs when someone makes an offer and invites others to counter it. This offer from the other side is not first finding. However, as soon as the invitation to offer is accepted, the other party offers a counteroffer, which is then either accepted or refused by the first party. Once the other party accepts the offer, a binding legal agreement is formed between the two parties. Advertisements serve as invitations to treat; an offer is made when a customer takes an item to an offer; and a product is accepted when a store employee does so. An offer may be given to a single individual, a group of individuals, or occasionally the entire planet.

• A particular individual; • A group of individuals; • The entire world—applicable to anybody who reads the advertisement

All the people to whom the offer is targeted should be informed of and made aware of the offer that has been used as an invitation. If that person is not aware of the offer, it cannot be withdrawn.