ILAC method using Australian Business Law

ILAC method using Australian Business Law

This assignment requires you to answer two problem-type questions using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder.

1000 word limit

Kruger is Heavy Machinery Sales Manager of JCI. He has frequently negotiated and signed contracts on behalf of JCI with Oppenheimer, Managing Director of Anglo-American Corporation Ltd. Kruger and Oppenheimer have been in negotiations over the supply of an ore smelter by JCI to Anglo-American for $ 3.5 million. On Friday 5 July at 10.00 am Kruger phones Oppenheimer and says “ I’ll be at your office at 3pm to sign the contract.” At 1 pm, Oppenheimer is having lunch at the Rand Club with Rhodes, who is another executive of JCI. During the lunch Rhodes says “Things are awful at JCI. Kruger has been making too many mistakes this year, his department hasn’t been trading profitably, and I heard he was going to get a nasty surprise at our lunchtime Board meeting. Frankly, I can’t see him surviving”.

Oppenheimer goes back to his office and mentions the lunchtime conversation to Jameson, a fellow Anglo-American executive, saying that in light of what he heard at lunch, he (Oppenheimer) is extremely concerned and thinks that Kruger could have been ousted. Jameson says "Look, we're getting a good deal here, don't worry about what is going on at JCI". At 3pm Kruger arrives and signs the deal to sell the machinery to Anglo American for $ 3.5 million. However on Monday the Financial News carries an article headed “JCI Heavy Machinery Sales Manager Fired at Board Meeting Last Friday”. Anglo American has tendered a cheque to JCI for $ 3.5 million, and has demanded delivery of the smelter, but JCI refuses to sell it, saying that Kruger had no authority to sell the smelter because he had been fired at 1.30pm and had acted out of spite when he signed the deal in order to make trouble for JCI.

Assume that all the above facts are provable in a courtand advise JCI as to their legal position, citing statutory and case law authority.