MLC101 - Law For Commerce And Australian Legal System - Law Assignment Help

Assignment Task

Question 1 

Peter is a director of a small, relatively young, but highly successful telecommunications company called Tel Matilda Ltd. There was talk in a recent meeting of the directors about a possible takeover bid by National Transmissions Associates (NTA). NTA, a larger and well-established market leader, is not so much a rival as a complementary company that values Tel Matilda Ltd’s customer relationship strategy and its ability to target customers in regional areas through its personalised approach.

Peter knew that if the takeover materialised, NTA would increase its market share considerably, so he decided to buy 50,000 shares in NTA at $1.50 a share. Peter didn’t see it as too much of a risk, because the share market was rather subdued at the time. Several months later, NTA made a generous bid for Tel Matilda Ltd; Peter voted for it, without mentioning his shareholding interest in NTA; and within days the shares Peter bought were selling for $2.70, yielding him $60,000 in profit.

Has Peter breached any directors’ duties under the Corporations Act 2001 (Cth)? Why/Why not?

Question 2

Mya decided to have an extension built so she called master builder Damien to give her a quote. Because the extension was substantial and would cost $50,000, Mya decided to have it built in four stages. The building contract between Mya and Damien provided for four stages of building works, with $12,500 payable to Damien at the completion of each stage. Damien commenced work on stage one in November 2020 and completed it in January 2021. Due to COVID-19, Mya was made redundant, and she is now worried about her ability to pay for the extension. Her friend, Fred, tells her not to worry. He said since Damien has only completed stage one of the job, he is not entitled to be paid under the contract at all, not even the $12,500. Fred also said she can terminate the contract early and that Damien cannot claim any damages against her.

Was Fred correct to advice Mya that she does not have to pay Damien anything and that Damien is not entitled to damages if she terminates the contract early? Why/Why not? Please use case law to support your answer.

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