Business Law Assignment: Contractual Law - Case Analysis and Remedies

This report analyzes a Business Law assignment focusing on contract law. The assignment examines a scenario involving a potential contract between two parties, Fred and Emily, discussing whether a valid contract exists based on the provided details. It considers the intention to create legal obligations, referencing the case of Welch v Jess [1976] NZ 1. The report then assesses Fred's potential remedies in case of a breach of contract, referencing Clark v Macourt [2013] HCA 93 and estimating a loss of $100,000. The report concludes that no contract was formed due to the lack of intention to create legal obligations, but Fred has remedies available if a contract had been valid.

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Issue 1
Whether a valid contract exists between Emily and Fred.
Rule
It has been held in the case of Welch v Jess [1976] NZ 185, that other than offer,
acceptance and consideration, the intention to create legal obligations is one of the main
criteria for the purpose of creating a valid contract.
Application
In the present situation, Fred and Emily has met at a bar and while talking about their
whereabouts came to know that Fred has been making an advertisement. In the furtherance of
a friendly Emily has agreed to take up the lead role in the advertisement. As all of it has been
a part of a friendly conversation, there was no intention to create legal obligations. Hence, no
contract has been formed.
Conclusion
Hence, no contract has been formed.
Issue 2
Whether Fred has any remedies available.
Rule
It has been held in the court of Clark v Macourt [2013] HCA 93, that damages needs to be
awarded in accordance with the injury that has been sustained by the aggrieved who has
breached the contract.

2BUSINESS LAW
Application
In this case, as Fred has incurred an estimated loss of $ 100000, he has the right to claim
this particular amount from Emily for the purpose of breach of the contract, assuming that
there has been a valid contract.
Conclusion
Fred has remedies available.

3BUSINESS LAW
Reference
Clark v Macourt [2013] HCA 93
Welch v Jess [1976] NZ 185