Apply the relevant legal concepts and principles to analyse and solve the legal issues arising in the case study by explaining and applying their knowledge of the legal principles and rules arising in the Australian legal system.
Note the four step process requires students to refer to legislation or case law as authority
for the rules of law explained in step two. Where appropriate you will need to refer to any
applicable legislation or case authorities
Case study
Marquis Warren is an accounts manager at Red Rock Finance Company with specific expertise in debt recovery. Marquis is so successful that he has built a reputation as an industry leader in recovery of company debts without resort to expensive legal action or engagement of often unreliable commercial debt recovery agents. Marquis is very proud of his contribution to Red Rock’s fortunes and has overseen a sizeable gain in market share of the business. Red Rock Finance Company has also become one of the most innovative and successful in the industry since 2005.
However, Marquis has become disillusioned with Red Rock and has engaged a professional recruitment agent to help him acquire a new position elsewhere with a salary increase over his current job. He feels that this is the only option as his contribution to the building of Red Rock’s reputation has not been recognised by senior management and the company owners. One Wednesday morning however he receives the following unexpected email from Ruth’s Finance, a rival company:
Dear Marquis,
At the last board meeting I raised the possibility of offering you a position as we have noticed your intelligence and innovation over a long period of time in the industry and wish to utilise your skillset and enthusiasm. So, it was decided amongst the board members that a salary of $185K per annum will be made available should you take up our offer. This, it was felt, recognises your true worth to our company.
I hope this meets with your approval and look forward to our future working relationship.
Kind regards
Oswaldo Ruth
05/11/2015.
Marquis is taken completely by surprise and is very happy indeed with the offer. He immediately sends the following email to Oswaldo thanking him and the board for their generosity:
Dear Oswaldo,
Thank you so much for your kind words and generosity in this matter. This pleasant surprise is very welcome news. Yes, I am delighted with the offer and will immediately submit my resignation to my current employer which will allow me to commence at Ruth’s as soon as possible.
Kind regards
Marquis Warren
05/11/2015
6 of 7
Soon after he commenced at Ruth’s on the 2/1/2016, Marquis takes on the extra responsibility of conducting mentoring sessions with interested junior staff members in order to indoctrinate his debt recovery philosophy and work ethic.
By May 2016 Oswaldo has noticed Marquis’s excellent approach and decided to increase Marquis’s salary to $205K backdated to his first day at Ruth’s which pleases Marquis as he could really use the money. Oswaldo advises Marquis who subsequently expressed his thanks to Oswaldo and the board members for the new salary package.
A few days later, however, the board of Ruth’s decide that perhaps their promise to Marquis was premature and refuse to honour their pledge claiming a general downturn in the finance industry as the reason. They advise Marquis that his salary will remain as before. Marquis is most upset as he was looking forward to buying an investment property and was struggling to save a decent deposit.
He has called his lawyer for advice in the matter to see whether he can enforce the contract for the new salary package against Ruth’s?
.
Question:
1. Using the four-step process, discuss whether the element of consideration required for the formation of a legally enforceable contract is present in the above scenario.
and
2. Using the 4 step process, discuss the whether the elements of intention and agreement required for the formation of a legally enforceable contract are present in the scenario.
STEP ONE
Identify the legal issue
STEP TWO
Explain the rule(s) of law with reference to relevant authority.
STEP THREE
The rules of law explained must be specifically applied to the facts so a solution can be found.
STEP FOUR
A logical conclusion should flow from the above steps
Overall use of the four step process, structure of the answer and referencing.
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