Fred's Case Study

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Fred's Case Study

Fred's Case Study


The case described in the description is not that quite complicated. However, it depicts the picture of the ethical dilemmas quite prevalent in every society. Same is the case of Fred, who has failed to address the direct command of his manager related to installation of cable lines. Fred had made use of moral judgment and conducted a judgment, which was for the betterment of the general public, but quite a severe blow on the business aspect of the company. The situation would be discussed as per the Australian state law together with Commonwealth laws. Hence, the implications would be viewed from the point of view of both perspectives. Furthermore, the legal capacity of Fred will also be analysed under the light of the current situation for getting better assessment of the problem.


The case will provide us with an outlook to determine the possible implications of the decisions having finances involved. Although, as evident from the case, the decision was clearly made for the betterment of the company. Does Fred carry the power to order such deployment of cables? Apart from that what was the legal outlook of the problem associated with it? Most importantly, what legal actions can be withstood. Before going on with our discussion about the possible legality of the steps of Fred and his manager, it is better going through the basics of contracts and the circumstances which give rise to cancellation of the contract.

Legal and Void Contract

Consumer Contract

A consumer contract could be contracted for the supply of goods or services. Furthermore, it could even address the problems of grant or sale of interest to any individual which was personal, domestic or household in nature. The first situation matches our requirement quite significantly. However, as per ASIC act, related definitions were applied for the financial products and services too. Hence, the contract signed in the absence of manager falls under the category of consumer contract.

Legality and Fred's Deciding Power

As per the Australian State laws, court have the rights to look into the features related to the validity of contract on a number of factors. The first implication, which would be looked by the court, includes the physical nature of a contract. The court determines whether the contract was merely an agreement or a fully forged contract. In order to make contract legal, it should fulfil a number of requirements. The first one includes an exchange of bargains and/or promises which means that something of sufficient value should be given in exchange of goods and services. The current scenarios completely fulfil the mentioned requirement. The cable salesman has made his services available after the next payment. However, this does not determine the true nature of validity of the situation as the salesman does not know about the temporary position of Fred. Another way of looking at the situation is that Fred has made use of his official powers intentionally and completely overlooked the decision of the ...
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