BTF5955 Cheatsheet · Business and Company Law

Monash University · cheat sheet for the final exam. Monash Semester 2 final assessment period, 2–18 November 2026 (check your personal exam timetable). Full BTF5955 study guide →

A4 landscape · two sides · 6 columns · ink + yellow · print at 100% BTF5955 · S2 2026 · OPEN-BOOK EXAM SHEET
BTF5955
Business and Company Law
Monash Business School · Business Law & Taxation · S2 2026
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SIDE 1/2   ISSUE → RULE + AUTHORITY → APPLICATION → CONCLUSION OPEN-BOOK EXAM SHEET Rules · cases · sections · decision paths

0 · Exam map course data + brief

Reflective 20%Take-Home 30%Final Examination 50%
TaskExam value
Reflective Assessment20%
Take-Home Assessment30% · two IRAC problems: negligence + contract
Final Examination50% · IRAC problems · Topics 1–12 except liquidation
Permitted materials — official wording“the final exam is open book and only hard copy material is allowed” (BTF5955 Unit information, 2026)

Duration and sections: confirm on Moodle. Build every response as separate mini-IRACs; give the most space to Application.

ISSUERULEAPPLYCONCLUDE question?case / sfacts bothwaysreasoned,tentative
IRAC skeleton (Topic 1 figure): one complete cycle per live issue.

1 · IRAC control strip T1 · T13

MoveWhat earns marks
IPrecise legal question, not a topic label.
RElements + source: ratio or statutory section; AGLC4.
APin each element to operative facts; argue both ways; analogise/distinguish.
CShort, qualified result and available remedy.

Precedent: a superior court’s ratio binds lower courts in the same hierarchy; obiter is persuasive. Valid statute prevails over inconsistent common law. Civil proof: balance of probabilities.

Source / court moveUse in Rule
StatuteStart with ordinary text; avoid absurdity; prefer the purpose that best achieves the Act.
CaseExtract material facts + legal issue + ratio; use obiter only as persuasion.
HierarchyHigh Court apex; State Courts of Appeal/Supreme Courts above intermediate and lower courts; Federal Court handles federal matters.
EquityDiscretionary relief supplements common law: injunction, specific performance, rescission, rectification.

AGLC4 exam shorthand: identify the full authority once, then make every later reference do analytical work: “Unlike Olley, notice came before formation …”.

2 · Negligence roadmap T2

1 DUTY · foreseeability + category 2 BREACH · s 48 reasonable person 3 CAUSATION · “but for” + scope, s 51 4 DAMAGE · recognised + foreseeable kind
Negligence element chain (Topic 2 figure). Fail any gate → no liability.

Duty → breach → cause → damage

Duty: reasonable foreseeability plus salient features; established categories simplify it. Donoghue v Stevenson [1932] AC 562: neighbour principle; manufacturer–consumer anchor.

Breach: objective reasonable person. Wyong Shire Council v Shirt; Wrongs Act 1958 (Vic) s 48. Weigh probability and seriousness of harm against burden of precautions and social utility.

Causation: factual “but for” plus appropriate scope of liability, s 51. Remoteness: damage must be a reasonably foreseeable kind: The Wagon Mound [No 1].

Defences: contributory negligence reduces damages by apportionment; volenti is complete but requires knowledge, understanding and free acceptance of the specific risk. P bears the four elements; D bears a defence.

Duty signalStarting point
Sealed productManufacturer–consumer: Donoghue.
Visitor on premisesEstablished occupier–entrant category.
Driver / employer / professionalEstablished relationship; define foreseeable claimant and harm.
Novel dutyForeseeability + salient features: vulnerability, control, proximity.
RISKchance + gravity GUARDINGburden + social utility Reasonable person take precaution?
Breach calculus (Topic 2 figure): weigh, do not merely list, all four factors.

Trap Foreseeability appears at duty, breach and remoteness but does different work. Give each element its own application.

3 · Contract formation T3

OFFER+accept INTENTlegalrelations VALUEconsider-ation CAP-ACITY + consent · certainty · legalityall gates → binding contract
Formation gates (Topic 3 figure). Test every element in order.

Agreement

Offer = willingness to be bound on stated terms. Displays, adverts and website listings usually invite offers: Pharmaceutical Society v Boots. A clear unilateral promise can be an offer to the world: Carlill v Carbolic Smoke Ball Co.

Acceptance must mirror the offer and be communicated; silence ≠ acceptance. Counter-offer kills the original. Offer also ends by communicated revocation before acceptance, rejection, lapse or death. Postal exception: effective on posting where post is proper, Adams v Lindsell; instant communications on receipt.

Other gates

Intention: commercial dealings presumed binding; social/domestic presumed not, rebuttable: Balfour v Balfour. Consideration: bargained-for benefit/detriment; sufficient not adequate; moves from promisee; past consideration is not good consideration. Existing duty generally insufficient: Stilk v Myrick.

Promissory estoppel: reliance + detriment + unconscionability may support relief despite missing consideration: Waltons Stores v Maher. Then test capacity, genuine consent, certainty and legality.

Exam move Identify who made the offer. “I accept” cannot convert an invitation to treat into an offer.

4 · Terms enter the deal T4

RouteRule / authority
SignatureBound whether read or not, absent exception — L’Estrange v Graucob.
NoticeReasonable notice before/at formation — Olley v Marlborough Court.
DealingRegular, consistent prior course between same parties.
ImpliedFact, law, custom or statute; ACL guarantees overlay.
Statement/puff?Intention: timing, importance, special knowledge and writing.
Wholly writtenParol evidence cannot vary it; exceptions: collateral contract, rectification, ambiguity.

5 · Classify breach → remedy T4 · T5

CONDITIONessentialbreach →end + damages WARRANTYminorbreach →damages only INTERMEDIATEactual effectserious?yes: terminate Hongkong Fir: effect decides remedy
Term classification (Topic 4 figure): classification controls termination.

Exclusion clause: (1) prove incorporation; (2) construe whether it covers this loss; ambiguity runs against the relying party (contra proferentem); (3) check statute. ACL consumer guarantees are non-excludable.

Discharge: performance; agreement; serious breach; or narrow frustration (supervening no-fault event makes performance impossible or radically different, not merely harder/unprofitable). Anticipatory repudiation lets the innocent party affirm or accept and terminate.

EXPECTATION: position as if performed HADLEY FILTERnatural loss OR contemplated special loss MITIGATIONexclude reasonably avoidable loss
Damages path (Topic 5 figure): measure first, then remoteness and mitigation.

6 · Enforcement checklist T5

Termination: condition, serious breach of intermediate term, or repudiation. Warranty breach → damages only. Election matters: affirm or terminate.

Damages: expectation default; reliance alternative for wasted expenditure. Hadley v Baxendale: recover loss arising naturally, or special loss reasonably contemplated at formation because circumstances were known. P must mitigate; avoidable loss is unrecoverable.

Fixed sum: genuine pre-estimate enforceable; punishment out of proportion to loss is an unenforceable penalty.

Equity: specific performance / injunction only where damages inadequate; also rescission and rectification.

Answer order Right to terminate → measure → Hadley limb → mitigation → equitable alternative.

8 · Consumer + privacy T6

ACL s 18 IRAC: trade/commerce; misleading/deceptive or likely; and, for damages, causal loss. Test the objective overall impression on the ordinary target audience. Intent is irrelevant; buried fine print rarely cures a dominant claim. Remedies: injunction, damages and corrective orders, but no pecuniary penalty under s 18 itself.

Privacy: Privacy Act 1988 (Cth); 13 APPs govern collection, use/disclosure, security/quality and access/correction. Eligible serious-harm breach → affected individuals + OAIC under NDB.

Trap Do not say “no intent, so no s 18”. Strict liability makes effect, audience and context decisive.

9 · Entity + veil T7

THE COMPANYseparate legal personSalomon · s 124 MEMBERSlimited liability DIRECTORSmanage VEIL LIFTS NARROWLY: sham · agency · statute
Corporate veil (Topic 7 figure): separate personality is the rule; lifting is exceptional.

Salomon v Salomon & Co Ltd; s 124: company owns property, contracts, sues/is sued and continues independently. Members risk unpaid share amounts, not company debts. Veil lifting needs sham/facade, agency/alter ego or statute; genuine risk limitation is insufficient.

StructureLiability / continuity / control
Sole traderNo separate entity; unlimited liability; direct control.
PartnershipPartners generally jointly/severally liable; mutual agency; may dissolve on departure.
TrustTrustee holds property for beneficiaries; analyse deed and trustee liability.
CompanySeparate person; limited liability; perpetual succession; compliance cost.

10 · Company acts T8

s 198A: board manages and exercises powers not reserved to members. Members cannot overrule day-to-day management by ordinary resolution; use special resolution to alter constitution or remove/replace directors. s 140: constitution + replaceable rules operate as statutory contract. Company capacity: s 124; execution: s 127.

11 · Members: decision + remedy T9

QuestionRule
Vote?Ordinary: >50% cast. Special: ≥75%, s 9; e.g. constitution, s 136.
Call meeting?Directors or members with ≥5% votes, s 249D.
Dividend?s 254T: assets exceed liabilities sufficiently; fair/reasonable to members; no material creditor prejudice.
Who sues?Foss v Harbottle: company is proper plaintiff for company wrong.
Company wrong?Derivative action ss 236–237; leave: good faith, company’s best interests, serious question, notice.
Personal unfairness?Oppression ss 232–233; objective commercial unfairness; wide orders, commonly buy-out.

Oppression: affairs/act/omission contrary to members’ interests as a whole, or oppressive, unfairly prejudicial or unfairly discriminatory. s 233 commonly supports a buy-out and permits wide relief. Derivative recovery goes to the company; oppression protects the member.

12 · Directors’ duty stack T10 · T11

WHO? director · de facto · shadow · s 9 s 180 care/diligence + s 180(2) judgment rule s 181 good faith · interests · purpose ss 182–183 no misuse: position / info s 588G prevent debt while insolvent · s 95A
Directors’ duties (Topics 10–11 figures): run every live section, not just the obvious one.

Care + purpose: s 180(1) objective standard: Daniels v Anderson; ASIC v Cassimatis. Section 180(2) needs good faith/proper purpose, no material interest, adequate information and rational belief. Section 181 catches a control-motivated share issue: Howard Smith v Ampol.

Misuse / debt: ss 182–184; add Regal, ss 191/195 and ss 208–210 for conflict. For s 588G use s 95A, then s 588H / s 588GA. Finish: ss 1317E/G/H, ss 206C–206E and general-law relief: ASIC v Adler.

13 · Distress path T12

Receiver: secured creditor/court → charged assets → secured debt; reasonable care to obtain market value/best price, s 420A.

Administration: ss 436A/437A appointment + control/moratorium; s 439C outcome; s 435A continuation or better return.

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Check your unit's exam rules for any limit on what may be brought in.
BTF5955
Worked Drills · Traps · Fast Recall
Monash Business School · Business Law & Taxation · S2 2026
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SIDE 2/2   4 HYPOTHETICALS · APPLICATION LINES · AUTHORITY INDEX · LAST-PASS CHECKS TIME ∝ MARKS Write visible IRAC headings · apply every element

A · Drill 1: café slip T2 worked example · 8 marks

Facts: Priya buys coffee. Staff have just mopped near the counter; no sign or cordon. Carrying her cup and watching the counter, Priya slips, fractures her wrist and loses income.

DUTY occupier → entrant; slip foreseeable BREACH real risk + fall harm; sign is cheap CAUSE / LOSS wet floor → foreseeable injury DEFENCE inattention may reduce award
Worked negligence chain: every arrow needs fact-specific reasoning.
IssueIs the café liable in negligence, and does Priya’s inattention reduce damages?

Rule: occupier–entrant duty; breach by Wyong calculus and s 48; factual cause/scope under s 51; foreseeable kind of damage; contributory negligence.

Application: unmarked wet tiles create a real, serious fall risk; a sign/cordon is cheap and closure has little utility cost. But for the hazard she would not fall; injury and losses are foreseeable. Her inattention is modest against the hidden hazard.

Conclusion: all four elements likely met; damages may be reduced for contributory negligence, not defeated.

Timing The 8-mark split puts most marks in application; allocate time the same way.

Negligence traps fast recall

Wrong moveRepair
“Risk foreseeable, so liable.”Still prove breach, causation and damage.
List s 48 factors.Weigh each against the proposed precaution.
Merge cause/remoteness.But-for + scope first; foreseeable kind second.

Cross-topic split T13 figure

ONE FACT PATTERN CONTRACTformed?term? remedy? TORT / ACLharm?impression? COMPANYpower? duty?remedy? Separate IRAC for each strand · time by marks
Cross-topic spotting (Topic 13 figure): segment before writing.

B · Drill 2: $49 laptop T3 worked example · 6 marks

Facts: GadgetHub accidentally lists a $1,490 laptop online at $49. Mia adds it to cart and emails “I accept”. Before confirmation, GadgetHub declines.

WEBSITE PRICE: OFFER OR INVITATION? USUALLY INVITATIONBoots → buyer offers CLEAR REWARD?Carlill unilateral offer No seller acceptance → no agreement
Offer classifier (Topic 3 figure): first identify which communication can bind.
IssueWas the listing an offer Mia accepted, or an invitation to treat?

Rule: displays/listings normally invite offers, Boots; buyer makes offer; seller may accept/decline. Acceptance must be mirror-image and communicated. A clear reward may be unilateral, Carlill.

Application: ordinary website price resembles display, not a promise to everyone. Mia’s email is therefore an offer to buy at $49. GadgetHub sent no confirmation or other acceptance before declining. No words/acts create a Carlill-style unilateral promise.

Conclusion: no agreement and no binding contract; Mia cannot compel the $49 sale.

Counterfactual If the listing contained a clear commitment and mode of acceptance, test its exact language; do not assume all adverts are invitations.

Formation + terms traps T3 · T4

Trigger factImmediate move
Changed “acceptance”Counter-offer; original destroyed.
Letter acceptanceAsk whether post proper → posting rule.
Signed documentL’Estrange; bound unread, absent exception.
Receipt/room notice after paymentOlley; too late to incorporate.
Ambiguous exclusionConstrue against relying party; then ACL overlay.
Reward promiseMay be an offer to the world; acceptance by performance — Carlill.
RevocationEffective only if communicated before acceptance.
SilenceNot acceptance; look for communicated assent.
Act already donePast consideration is not good consideration.
Same existing dutyGenerally insufficient consideration — Stilk v Myrick; test estoppel separately.

C · Drill 3: “Free forever” T6 worked example · 6 marks

Facts: app headline says “Free forever — no charges, ever.” After 30 days it auto-charges unless cancelled; this appears only in fine print several screens deep.

DOMINANT MESSAGE: “FREE FOREVER” AUDIENCEordinary target user CONTEXTburied fine print Overall impression misleads; intent irrelevant
s 18 lens (Topic 6 figure): dominant impression beats obscure qualification.
IssueDid the marketing contravene ACL s 18?

Rule: a person must not, in trade or commerce, engage in conduct misleading/deceptive or likely to mislead/deceive. Strict and objective; assess overall impression on ordinary/reasonable audience. For damages, show causal loss.

Application: public marketing is trade/commerce. “Free forever” tells an ordinary user no charge will arise; automatic monthly charging contradicts it. Deep fine print does not neutralise the headline. Intent does not matter.

Conclusion: s 18 likely contravened; injunction, corrective order and damages may be available. No pecuniary penalty under s 18 itself; examine s 29 for a listed false representation and penalties.

ACL + privacy quick matrix T6

FactRoute
General misleading impressions 18; strict; objective audience.
False price, quality, testimonial, approvals 29; specific representation; penalty.
Special disadvantage / pressuress 20–22 unconscionability.
Defective consumer goodss 54 acceptable quality; non-excludable.
Poor consumer servicess 60 due care/skill; non-excludable.
Personal-data lifecycle13 APPs; Privacy Act; OAIC.
Eligible serious-harm breachNDB: affected individuals + OAIC.
Unfair standard-form termss 23–28: void if significant imbalance, no reasonable necessity to protect legitimate interests, and detriment.
Fitness for disclosed purposes 55; automatic, non-excludable guarantee.

D · Drill 4: director diverts deal T11 worked example · 8 marks

Facts: Nadia, Harbour Logistics director, uses client information to divert a contract to a competitor she part-owns, tells nobody, then incurs new supplier debt despite reasonable grounds to suspect Harbour cannot pay existing debts when due.

POSITION s 182 · diverted opportunity INFORMATION s 183 · client data misuse CONFLICT Regal · s 191 non-disclosure · s 184? DEBT s 588G · s 95A cash flowthen s 588H defence / s 588GA safe harbour
Layered duty analysis (Topic 11 figure): one fact pattern can trigger four routes.
IssueWhich misuse, conflict and insolvent-trading duties are breached, and what follows?

Rule/Application: Nadia uses office (s 182) and office-derived information (s 183) to benefit herself/another and harm Harbour. Secret part-ownership creates a no-conflict/no-profit breach (Regal (Hastings)) and material-interest disclosure issue (s 191); dishonesty may engage s 184.

New supplier debt is incurred while Harbour cannot meet existing debts when due (s 95A), with reasonable grounds to suspect insolvency. As director she likely breaches s 588G absent s 588H or s 588GA.

Conclusion: likely breaches ss 182, 183, 191 and 588G; possibly s 184. State consequences: ss 1317E/G/H declaration, penalty and compensation; ss 206C–206E disqualification; account of profits.

Do not stop after identifying conflict. Run insolvency separately and finish with remedies/consequences.

s 180(2) four-limb test T10

LimbFact question
Good faith / proper purposeWas judgment honestly for its conferred purpose?
No material interestAny personal stake in subject matter?
InformedInformation reasonably believed appropriate?
Rational beliefBelieved company’s best interests, rationally?

All four are cumulative and protect only s 180 business judgments, not conflict duties.

A decision to take or not take action on business operations is the threshold judgment. If uninformed or personally interested, identify the failed limb; do not merely announce that the safe harbour fails.

E · Shareholder grievance selector T9

WHO SUFFERED THE WRONG? COMPANYFoss starting point MEMBERcommercial unfairness DERIVATIVEss 236–237 + leave OPPRESSIONss 232–233
Members’ remedies (Topic 9 figure): classify the wrong before choosing relief.

Mini-drill: Raj (70%) controls the board and pays himself large “consulting fees” absorbing all profit for three years; Nadia (30%, non-worker) receives no dividends. I: objective commercial unfairness to minority? R: s 232; wide s 233 orders. A: fee stream diverts return to controller and excludes minority; excessive/device facts matter. C: strong oppression claim; likely fair-value buy-out, with injunction/dividend-related orders possible.

If directors misappropriate company property, the loss is the company’s: start at Foss and seek leave for derivative action. Ask whose pocket suffered and who receives recovery.

F · Company-law issue order T7–T12

Fact signalRun this first
“Pty Ltd owes”Salomon + s 124; separate person.
Shell defeats old creditorVeil: facade/sham/evasion exception.
Members direct supplier choices 198A board power; resolution ineffective.
Outsider + internal defectss 128–129; then s 128(4) knowledge/suspicion.
Dividend approvedAll three s 254T limbs.
Share issue changes controls 181 + Howard Smith; also s 180/BJR.
Secret opportunity/infoss 182–184 + Regal + s 191.
Unpaid debts + new credits 95A → s 588G → s 588H / s 588GA.

Authority pairings one-line ratios

Donoghue neighbour/duty · Wyong breach calculus · Wagon Mound foreseeable-kind remoteness · Boots invitation · Carlill unilateral offer · Olley notice in time · Hongkong Fir intermediate-term seriousness · Hadley contract remoteness · Salomon separate entity · Howard Smith proper purpose · Regal no-profit · Adler duty breach/consequences.

G · Distress decision path T12 figure

COMPANY IN FINANCIAL DISTRESS SECURED CREDITORreceiver → collateralsale duty s 420A DIRECTORSappoint under s 436Acontrol s 437A s 439C CREDITORSDOCA · end · wind up
External administration (Topic 12 figures): process follows appointor and objective.
AxisReceiverAdministrator
DriverSecured creditor / courtUsually board, s 436A
FocusCharged property; secured debtWhole company; creditors collectively
ObjectRealise collateral; s 420A sale cares 435A continuation or better return
ControlCharged assetsFull control, s 437A + moratorium
End pointDebt recovery / realisations 439C: DOCA, end, or wind up

Scope guard: use liquidation only as the comparator embedded in s 435A / s 439C; do not work liquidation mechanics in the final.

H · Last five-minute audit T13

  • Every Issue is a question; every Rule names a case/section.
  • Every element has a fact; every adverse fact is answered.
  • Authority is used for a proposition, not name-dropped.
  • Conclusion is qualified and states remedy/consequence.
  • Check onus: claimant/regulator proves breach; director/defendant proves applicable defence.
  • Use AGLC4; keep case and Act names exact.
  • Hard-copy index tabs: negligence · formation · terms/remedies · ACL/privacy · entity/governance · members · duties · distress.
  • Stop when allocated time expires; move in proportion to marks.

Answer finish T13

Rule accuracy: distinguish the element, its source and its legal consequence. Application: pair each proposition with a fact, test the opposing inference, and explain why one is stronger. Conclusion: state likelihood, remedy and any reduction, discretion, defence or procedural leave.

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