Australian Business Law Issue 2022

AUSTRALIAN
BUSISNESS LAW
[Type the
document
subtitle]

Masters of Law 1
Contents
Material facts.............................................................................................................. 2
Issue........................................................................................................................... 2
Rules.......................................................................................................................... 2

Masters of Law 2
Material facts
The first material fact of the case is that no written contract existed between the parties. Penny
has never signed a lease deed, although Mrs. Havealot kept saying that Penny was a family and
she could go ahead and could do whatever she wants to do with the premises. Believing in her
statement, penny spent money on renovation. Secondly, parties to the case were in a social
relationship with each other where generally parties do not intend to create a legal relationship.
At third, later on, Mrs. Havealot showed her intention to lent out the store to a third party stating
that no written contract was there. Here another material fact is that Penny asked for lease deed
many times and Mrs. Havealot promised her to provide the same. In each conversation, parties
were referring to the lease deed on a repeat basis.
Issue
Whether for the existence of a contract between Penny and Mr. Havealot, a signed lease deed
was required to be there? What legal rights Penny does have in against of Mrs. Havealot.
Rules
An agreement, which is legally binding on all the parties, is known as a contract. It means to
make the parties liable to each other; a contract is required to be there. An agreement becomes a
contract when the same gets all the essentials elements, which are required to exist in each
contract. The very first element of a contract is offer. An offer can be considered as a proposal
where a party makes a promise to do something or not to do that in exchange for some promise
from another party. This is to inform that an offer can come in written or as well as in oral mode