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- Answering a legal problem - IRAC
Proper planning is vital to successfully answering a legal problem. Below are some hints and tools using a problem from Company Law. When answering a legal problem, it is useful to apply the IRAC structure so that you address all areas required.
- IRAC structure
The IRAC method has four steps:
- Identify the issue
- Relevant law - Here you need to explain the law not just state it. This could be sections/s of the Corporations Act or case law
- Application to the facts - the law is applied to the facts of the problem
Use the following IRAC structure as a guide to answer case study questions.
- Issue: Define the legal relevant issue.
- Relevant law: Identify legal principles from cases and statutes. Explain the law, don't just state it.
- Apply to the facts: Develop legal arguments by applying the law to the facts.
- Conclusion: Arrive at a considered conclusion.
Note: Students gain the most marks by explaining the relevant law and then applying it to the facts.
Example question and answer
Bingo Ltd is a manufacturer of electrical goods. It entered into a contract with Melvin Ltd, a large discount retailer. Under this contract, Bingo Ltd was to supply its goods exclusively to Melvin Ltd. The directors of Melvin Ltd subsequently discover that a wholly-owned subsidiary of Bingo Ltd is selling identical electrical goods to competitors at cheaper prices. It appears that the subsidiary was incorporated to enable Bingo Ltd to avoid the effects of the contract with Melvin Ltd. Advise the directors.
(This a five-mark question)
Please note: This is a simple low mark answer (5 marks) to illustrate the use of IRAC only. Many Company Law problems will involve multiple issues. In these scenarios each issue would need to be addressed. For example: The first issue is... The second issue is whether...
1. Read the following question.
2. Now read the following text and try to identify the IRAC structure. Check your understanding by clicking on the buttons to reveal the IRAC structure.
Read the following question, then identify which part of the IRAC structure best fits each text excerpt by selecting from the drop down menu.
- Writing case notes
- Writing a legal memo
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