Date of publication: 2017-09-03 12:51
Answer: To establish whether or not Mrs Turner has entered into two contracts first off all we have to look at what makes a contract and what type of offer was made to.
In this case there are two uncertain aspects. First the final price is not certain as it is left to the discretion of B to determine. A reasonable person in the position of A would be unlikely to finally commit to such a provision as it leaves A in the position of not knowing how much she will have to pay. In addition, the court could not fix this uncertainty by implying that a reasonable price be paid as that is not what the parties agreed. Second, although there is a good faith obligation the law requires there to be a mechanism by which gaps in the contract can be filled as well as negotiations to be well advanced, see Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd. Here the negotiations have barely begun and the mechanism is too uncertain to be given effect to.
In the above case, George and Alex come up with an informal agreement. George asks Alex to postpone his studies at the Sydney University in order to come and aid in running his firm with Stella who is his step mother. George promises to pay Alex a sum of $85,555 per month and pledges him a share of the firm&rsquo s total property. Alex agrees to the proposition of his father and decides to put on hold his second year studies. George and Alex agree on the offer without having a written contract among them. Their agreement is based on verbal accord that the contract law recognizes . Verbal agreement among employers and its employees is recognized by Australian law and in case the employer breaches the contract, he or she is feasible to the mutual contract.
Contracts for the supply of necessaries will generally be binding. There are no hard and fast rules to identify what is a necessary , but it does include the sorts of things the person needs to live a reasonable lifestyle. It includes basics such as:
' A place to live
' Medicine And so on.
Question: 6- Discuss on what basis a contract is deemed to be valid. 7- Select at least three terms that could appear in a contract with an artiste and explain the significance to the company.
8- Assess the validity of two clauses included in an artistes contract.
. Apply the elements of contract in the scenario of Alan and Cath.
An agreement must contain four essential elements to be regarded as a contract. If any one of them is missing, the agreement will not be legally binding. They are offer, Acceptance, intention of legal consequences and Consideration. The requirement of intention to create legal relations in contract law is aimed at sifting out cases which are not really appropriate for court action. Not every agreement leads to a binding contract which can be enforced through the courts.
' Executed Contracts
An executed contract is termed as an agreement in which no other business is missing out to be executed by either party. This explanation could be incorrect to a certain point, since completion of occupation will mean that the contract has ended. But in case of executed contracts, there exists some act or transaction or an obligation that has to be performed at various point of time in the future according to the contractual conditions.
Three types of contract are void at common law:
Contracts which attempt to oust the jurisdiction of the courts.
' [Distinguish between contracts which are binding in honour only (where the parties expressly declare that they do not intend to create legal relations, ., Jones v Vernon's Pools Ltd ( ) from contracts which attempt to oust the jurisdiction of the courts]
' Contracts prejudicial to the status of marriage and
' Contracts in restraint of trade.
. Explain different types of contracts and explains their impact. Any special rules need to be considered.
Bankrupt people are not deprived of their general capacity to contract. During their imprisonment, prisoners may enter contracts, including contracts to buy and sell prison still apply, so that the permission of Corrections Victoria is required before a prisoner may sign for, deliver or receive any document.
Purpose of contract law: Butterworths states that contract law has many “purposes”, but the central one is to support and to control the million of agreements that collectively make up the “market economy”. (Turner C 7556)
The consequence of establishing duress is often that the contract is voidable at the election of the wronged party. Where the wronged party elects to have the contract declared void, monetary damages sufficient to place the wronged party in their original position must be paid. Where the wronged party elects to continue with the contract, monetary damages to cover any loss suffered because of the duress must be paid.