Contents Part A.
Added on 2022-11-14
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1
Contents
Part A...................................................................................................................... 1
Issue..................................................................................................................... 1
Law...................................................................................................................... 1
Application............................................................................................................ 2
Conclusion............................................................................................................. 4
Part B...................................................................................................................... 4
Issue 1................................................................................................................... 4
Law...................................................................................................................... 4
Application.......................................................................................................... 5
Conclusion.......................................................................................................... 5
Issue 2................................................................................................................... 5
Law..................................................................................................................... 5
Application............................................................................................................ 6
Conclusion............................................................................................................. 6
Reference List............................................................................................................ 7
Contents
Part A...................................................................................................................... 1
Issue..................................................................................................................... 1
Law...................................................................................................................... 1
Application............................................................................................................ 2
Conclusion............................................................................................................. 4
Part B...................................................................................................................... 4
Issue 1................................................................................................................... 4
Law...................................................................................................................... 4
Application.......................................................................................................... 5
Conclusion.......................................................................................................... 5
Issue 2................................................................................................................... 5
Law..................................................................................................................... 5
Application............................................................................................................ 6
Conclusion............................................................................................................. 6
Reference List............................................................................................................ 7
2
Part A
Issue
As per the facts, John has completed his graduation and is carrying on his job with a
reputed consultancy firm. John is very keen to bring Big Bank and make it one of the clients
of his firm. After much hassle, he was able to fix a meeting with the CEO of the Bank. The
meeting was fixed on 15th May 2:30 PM. He wants to get the suit dry cleaned and thus visited
the local drycleaner, Span and Spic and gave his suit in exchange of a receipt. Now, the facts
reveal that whether the contract is made by John with Span and Spic?
Rule
When any two people want to establish any contractual relationship, then, it is necessary that
they must follow all the rules of the contract formation so that they can bind themselves with
the contract. A contract is a legal document which portrays the rights and liabilities of the
contractual parties. It is not every document that can be termed as a contract when made by
two or more parties. Rather, there are few contractual elements which must be comply with to
hold any document as a contract and which has the enforceability of law.1
Now, the main elements for contract comprises of an offer supported with an acceptance and
enforced with a consideration which is made by the capable parties with legal intention.
To start the formation of any contract, there is a need of an offer which is made by an offeror.
The terms and conditions which any offeror wants to be comply with by any other person
(offeree), then, such terms must be communicated to the offeree. The act of the
communication of the terms by an offeror to an offeree is called a process of an offer under
the law of contract and is rightly evaluated in Harvey v Facey2. When any offer is made then
it is very necessary that the same must reach the offeree and is decided in Carlill v Carbolic
Smoke Ball Co3. The communiqué of offer can be made by conduct or by oral statements or
in written form. In the leading case of Carlill v Carbolic Smoke Ball Company an offer was
made by conduct and was held to be valid in law. Whatever may be the mode, the only
requirement is that the same must be communicated in order to hold the same as valid in law.
The offeree when comes in the acquaintance of the tender then the offer is considered to be
final and complete and is held in R v Clarke4
1 Paul Latimer. Australian Business Law 2012, CCH Australia Limited. 2012.
2 Harvey v Facey [1893] AC 552.
3 Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1.
4 R v Clarke [1972] 1 All ER 219.
Part A
Issue
As per the facts, John has completed his graduation and is carrying on his job with a
reputed consultancy firm. John is very keen to bring Big Bank and make it one of the clients
of his firm. After much hassle, he was able to fix a meeting with the CEO of the Bank. The
meeting was fixed on 15th May 2:30 PM. He wants to get the suit dry cleaned and thus visited
the local drycleaner, Span and Spic and gave his suit in exchange of a receipt. Now, the facts
reveal that whether the contract is made by John with Span and Spic?
Rule
When any two people want to establish any contractual relationship, then, it is necessary that
they must follow all the rules of the contract formation so that they can bind themselves with
the contract. A contract is a legal document which portrays the rights and liabilities of the
contractual parties. It is not every document that can be termed as a contract when made by
two or more parties. Rather, there are few contractual elements which must be comply with to
hold any document as a contract and which has the enforceability of law.1
Now, the main elements for contract comprises of an offer supported with an acceptance and
enforced with a consideration which is made by the capable parties with legal intention.
To start the formation of any contract, there is a need of an offer which is made by an offeror.
The terms and conditions which any offeror wants to be comply with by any other person
(offeree), then, such terms must be communicated to the offeree. The act of the
communication of the terms by an offeror to an offeree is called a process of an offer under
the law of contract and is rightly evaluated in Harvey v Facey2. When any offer is made then
it is very necessary that the same must reach the offeree and is decided in Carlill v Carbolic
Smoke Ball Co3. The communiqué of offer can be made by conduct or by oral statements or
in written form. In the leading case of Carlill v Carbolic Smoke Ball Company an offer was
made by conduct and was held to be valid in law. Whatever may be the mode, the only
requirement is that the same must be communicated in order to hold the same as valid in law.
The offeree when comes in the acquaintance of the tender then the offer is considered to be
final and complete and is held in R v Clarke4
1 Paul Latimer. Australian Business Law 2012, CCH Australia Limited. 2012.
2 Harvey v Facey [1893] AC 552.
3 Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1.
4 R v Clarke [1972] 1 All ER 219.
3
Now, the offeree when receives the offer and when desires to gave his consent to the same,
then, an acceptance is sad to be made and is held in Masters v Cameron5. When any
acceptance is made then it is very necessary that the same must reach the offeror and is
decided in Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (NSW)6. The
communication of acceptance can be made by conduct or by oral statements or in written
form. In the leading case of Van Den Esschert v Chappell7an acceptance was made by
conduct and was held to be valid in law. Whatever may be the mode, the only requirement is
that the same must be communicated. In Felthouse v Bindley8 silence was not considered to
be a valid mode of conveying an acceptance and the same was held to be invalid in law.9
When an acceptance is made by deviating with the terms of offer then it is counter offer
which revokes offer (Hyde v Wrench10. But, it was held in Stevenson, Jaques, & Co v
McLean11that when the party’s only exchange information’s between them then it is not an
act of either offer or acceptance, but, did not affect the sanctity of any of the promises.
When any offer and acceptance is made, then, a valid agreement is made by the parties. Now,
when any promises are made then it is necessary that the promises must be made with legal
intention. If the parties do not have any legal intention, then, there is no enforceable contract.
In Balfour v Balfour12the parties with family relation do not hold any kind of legal intonation
and as per Murphy v Simpson13 the parties with commercial relation do have legal relation.
But, if evidence can be laid down then the legal presumptions are rebuttable in nature.
Further, the promises which are made by the parties should be supported with some kind of
real value which has sufficiency in the eyes of law and is called consideration and is held in
Roscorla v Thomas14. When there is no consideration, there can be no enforceable contract in
law.
Also, the parties must be capable to contract and is held in Nash v Inman15.
5 Masters v Cameron (1954) 91 CLR 353.
6 Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (NSW) (1988) 14 NSWLR 527.
7 Van Den Esschert v Chappell [1960] WAR 114.
8 Felthouse v Bindley (1862) EWHC CP J 35.
9 David Parker and Gerald Box, Business Law for Business Students, (Lawbook Company, 2013).
10 Hyde v Wrench (1840) 49 ER 132.
11 Stevenson, Jaques, & Co v McLean [1880] 5 QBD 346.
12 Balfour v Balfour [1919] 2 KB 571.
13 Murphy v Simpson [1957] VLR 598.
14 Roscorla v Thomas (1842) 3 QB 234.
15 Nash v Inman (1908)
Now, the offeree when receives the offer and when desires to gave his consent to the same,
then, an acceptance is sad to be made and is held in Masters v Cameron5. When any
acceptance is made then it is very necessary that the same must reach the offeror and is
decided in Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (NSW)6. The
communication of acceptance can be made by conduct or by oral statements or in written
form. In the leading case of Van Den Esschert v Chappell7an acceptance was made by
conduct and was held to be valid in law. Whatever may be the mode, the only requirement is
that the same must be communicated. In Felthouse v Bindley8 silence was not considered to
be a valid mode of conveying an acceptance and the same was held to be invalid in law.9
When an acceptance is made by deviating with the terms of offer then it is counter offer
which revokes offer (Hyde v Wrench10. But, it was held in Stevenson, Jaques, & Co v
McLean11that when the party’s only exchange information’s between them then it is not an
act of either offer or acceptance, but, did not affect the sanctity of any of the promises.
When any offer and acceptance is made, then, a valid agreement is made by the parties. Now,
when any promises are made then it is necessary that the promises must be made with legal
intention. If the parties do not have any legal intention, then, there is no enforceable contract.
In Balfour v Balfour12the parties with family relation do not hold any kind of legal intonation
and as per Murphy v Simpson13 the parties with commercial relation do have legal relation.
But, if evidence can be laid down then the legal presumptions are rebuttable in nature.
Further, the promises which are made by the parties should be supported with some kind of
real value which has sufficiency in the eyes of law and is called consideration and is held in
Roscorla v Thomas14. When there is no consideration, there can be no enforceable contract in
law.
Also, the parties must be capable to contract and is held in Nash v Inman15.
5 Masters v Cameron (1954) 91 CLR 353.
6 Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (NSW) (1988) 14 NSWLR 527.
7 Van Den Esschert v Chappell [1960] WAR 114.
8 Felthouse v Bindley (1862) EWHC CP J 35.
9 David Parker and Gerald Box, Business Law for Business Students, (Lawbook Company, 2013).
10 Hyde v Wrench (1840) 49 ER 132.
11 Stevenson, Jaques, & Co v McLean [1880] 5 QBD 346.
12 Balfour v Balfour [1919] 2 KB 571.
13 Murphy v Simpson [1957] VLR 598.
14 Roscorla v Thomas (1842) 3 QB 234.
15 Nash v Inman (1908)
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