UNIVERSITY OF NEW SOUTH WALES



|THE UNIVERSITY OF |

|NEW SOUTH WALES |

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|FACULTY OF LAW |

LAWS1072 – Contract 2

FINAL EXAMINATION - Session 2, 2008

Time allowed: 2 hours, plus 10 minutes reading time

Examination condition: THIS IS AN OPEN BOOK EXAMINATION.

You are permitted to bring any printed or handwritten materials into the examination room.

Total number of questions: 1

Value of questions: This exam counts for 50% of your mark for Contract 2.

OTHER INSTRUCTIONS:

1. Your NAME and STUDENT ID should be written on the front of each exam booklet you use.

2. Your TEACHER’S NAME and your CLASS DAYS AND TIME should be written at the top right hand corner of each exam booklet you use.

3. Answers must be written in ink.

4. You may retain the examination paper.

5. Assume that the law to be applied is that of NSW and the Commonwealth of Australia. However, you may mention any relevant persuasive authorities from other jurisdictions. Full citation of authority is not required.

6. You should allow time to plan your answer, using appropriate headings and sub-headings. If you wish you may write your plan in your answer book but it will not be marked. You must write your answers legibly and in ink.

7. This paper consists of three pages including this instruction page. Please check that you have all pages. You may retain this paper.

QUESTION

Jim Kent is talented young rugby league player who lives on the North Coast of NSW. A talent scout from the Central Tigers, a Sydney Rugby League team, spots Jim playing in a schoolboy match and is impressed by his ability. He reports this, and as a result Jim is invited to Sydney to try out for the Club. Jim is so successful that the Tigers offer him a two year contract, during which time Jim moves up from junior grades to become a star of the senior team. When he turns 20 he signs a further contract with the Tigers. This contract is for a five year period, and commits Jim to playing with the Club as directed during that period in return for a large salary and also bonus payments where he performs particularly well or plays in representative matches. The contract also contains a clause which states: “The player agrees at all times to follow the Club Rules of the Central Tigers, and not to take any actions which might bring the Club or the National Rugby League Association into disrepute.”

For eighteen months things go splendidly—Jim is the star of the Tigers senior team, and becomes a great favourite of the Sydney media, which follows him everywhere he goes. However, one Friday night members of the media follow him into a nightclub in Kings Cross where Jim, partying with team-mates, has had a bit too much to drink and is photographed having sex in a toilet with an unknown woman. The photo is published on the front page of many Sydney papers. Jim is mortified, and the Club is furious.

The coach gives Jim a severe dressing down, and instructs him that in future he is required to stay home on Friday nights, and when he goes out he is to drink no alcohol. Jim agrees, and complies with these instructions for a few weeks. But being home alone in front of the TV on Friday nights is boring considering the alternatives available to a star footballer, and Jim becomes increasingly unhappy. One Friday night he goes out with his mates, gets drunk again, and misses an important game the next day because of a hangover. There is much negative publicity in the Sydney Press about Jim’s night out and missing the game the following day. As a result, the Tigers Club is fined $150,000 by the National Rugby League, which organises the game, for bringing the sport into disrepute. The Tigers reprimand Jim, warning him that another infraction will lead to his suspension.

At a charity night he is required to attend some time later, Jim finds himself sitting next to Harry Who, a prominent sports manager. In discussion, Jim complains about his difficulties with the Tigers. Harry expresses horror when he finds out that Jim does not have a professional manager, and is paid an annual salary of only $200,000.

“Ýou’re mad mate,” Harry tells Jim. “Sign on with my company and I can make you a fortune. Football players in Europe with half your ball skills get $5 million a year. With my international contacts I can get you a deal which makes the Tigers green with envy.”

In fact Harry does not have any international football contacts, although he is well-connected within the Arts community. But Jim is persuaded and signs a three year written contract with Harry’s company, HW Celebrity Management Pty Ltd, in which he agrees to give the company 5% of his income in exchange for the Company’s management services.

Harry does investigate the possibility of a football contract in Europe for Jim, but has no success. However, Jim now is increasingly unhappy at the Tigers and puts pressure on Harry to find him an alternative. Ultimately he and Harry agree that Jim should sign a lucrative deal with the Western Snakes, a Perth-based football club which has access to a lot of money because its major sponsor, Platinum Minerals, is making a fortune from the mining boom. Jim signs a three year contract to play for the Snakes in return for a large amount of money, tells the Tigers that they can shove the remaining two years of his contract with them, and leaves for Perth with his girlfriend to join the Snakes.

When Jim gets to Perth he finds to his surprise that the Snakes are a soccer club. He complains to Harry about having to learn a whole new set of skills, but Harry points out the benefit of switching to a sport that pays such large salaries to international players. After some discussion with his girlfriend, Jim decides to make the best of it and work hard to earn his $1 million per year salary from the Snakes. The Perth media is ecstatic about the success of the Snakes in poaching a star Sydney footballer, and after a difficult six months Jim has a successful year with the Snakes. He is named the Soccer Federation’s most promising new player.

Jim and his girlfriend Charmaine go out to celebrate the award. Unfortunately while crossing the road to the restaurant Jim is run down over and breaks his leg. This means that he will be out of action for at least eight months.

Unfortunately the break in the leg does not mend well, and six months later the treating doctor advises Jim that he will never be able to play football again at a senior level. The doctor suggests that Jim look for a job as a sports journalist.

Taking into account ONLY the law of contract and associated statutory provisions which have been considered in Contract 2:

• Advise Jim of his possible rights against and obligations to the Tigers.

• Advise Jim of his possible rights against and obligations to Harry.

• Advise Jim of his possible rights against and obligations to the Snakes.

END OF PAPER

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