Contract Law Issues 2022

RUNNING HEAD: CONTRACT LAW
Contract Law

1
CONTRACT LAW
Issue
The main issue in the present scenario is:
a) Whether Alice McKinley (AM) is bound to pay extra sum to Winona Hyder (WH) as she
was forced to pay the new subordinate?
b) Whether she is bound to pay the sum due on the Lamborghini,
c) Is she bound to pay the sum owned to Grasping Bank (GB)?
d) In relation to the 2020 netball season, does she have any remedies against Netball Club
Pty Limited (NC)?
Rule
a) To bind a person in contract there must be agreement between parties and there must be
all essential elements of contract i.e. a valid offer and acceptance. Once a proposal is
acknowledged, it becomes promise. A promise accompanied by consideration becomes
an agreement and agreement that can be enforced by law, becomes a contract.1 Yet
another essential element of contract is capacity to contract. The general rule is that
contracts made by minor are not binding as they lack the maturity or knowledge to enter
into contracts hence they need protection. Minors who are below the age i.e. 18 years
lack the capacity to enter into contract.2 Contract entered into by minor are always void-
ab-initio, subject to certain exceptions. If the agreement is for the good of minor or
relating to employment then he can be bind to perform his promise. In the case of Roberts
v Gray3, a minor was found responsible for his failure to perform his promise for a tour
with the applicant who was billiard player. It was a contract for the benefit of minor. It
was further held by the court that the contract was executor and enforceable from its
inception.
b) If the contract made by the minor is for their benefit then such contract binds the minors
to contracts, leases and other dealings as per The Minors (Property and Contracts) Act
1 John W. Carter, Contract Law in Australia (LexisNexis, 2013) 1000
2 Minors (property and contracts) Act 1970 (NSW)ss. 8-9
3 (1913) KB 520, CA