(Solved) Contract Law Assignment
Added on 2021-05-31
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Running head: CONTRACT LAWMasters v Cameron (1954) 91 CLR 353 Name of the StudentName of the UniversityAuthor Note
1CONTRACT LAWThe present report is based on the provision of the contract law. There are certain termsthat reveal the fact whether the agreement is binding in nature or it is subject to negotiation. Ingeneral, a contract is an instrument that binds the parties legally and the terms of the contractshould be legal in nature. The initial stage of contract is offer and acceptance. Further, the partiesshould have the intention to be legally binding and they should be capable to enter into contract.However, after an offer is accepted, the contract or the contractual terms are not binding upon theparties (Macaulay, 2018). According to the contract law, if in any instrument the term called‘subject to contract’ has been mentioned, it will be assumed that the same is in the negotiablecondition.The proper definition of contract is unknown to many people. According to them,contract only exists when all the essential of contract has been fulfilled and the same has beenexecuted in the form of formal agreement. However, there are other stages of contract. Even anoral agreement can be a contract. The norms regarding contract is strict in case of propertyselling. When an offer regarding any real estate has been accepted, the contract between theparties are stated as in the negotiable condition because of incomplete paperwork and non-transfer of money. This process indicates a condition where the offer and price can be negotiableat any time. The main issue regarding the subject to contract is to determine whether the partiesto a contract are bound immediately by their initial agreement or should they only be boundwhen a formal agreement is executed. This issue has been resolved by the case of Masters vCameron (1954) 91 CLR 353. The case of Masters v Cameron (1954) 91 CLR 353 is an important case in case ofcontract law. When an agreement has been made in writing, it has been held that the terms arebinding on the parties. This norm has been changed by this given case study. It has been held that
2CONTRACT LAWan agreement can be temporary in nature and may not be binding if the same has been in writing.In this case, certain rules have been mentioned by the court. The main issue of the case is todetermine whether the written agreement between the parties is a binding contract or not.According to the Court, the binding nature of a contract could be based on the nature of the termsof contract. In case, where the parties are agreed with the terms and condition of the contract andexpress certain intention to be bound immediately can be binding in nature. In this case, noformalities are required. Further, in case where the parties to the contract have agreed with theterms of the contract and they are ready to make all the formalities regarding the proper existenceof the contract can be binding in nature. However, according to the High Court, there is one morecontractual condition, which is fundamentally different from the above stated provisions. If theparties regarding the contract have no legal intention to be bound immediately, the same couldnot be treated as legally binding contract (Christensen, 2015). In this case, formal documents arenecessary before making the contractual terms mandatory for the parties. It has further beenobserved in this case that if in any contractual agreement, the word subject to contract ismentioned, the same could not legally bind the parties. however, in case of email contract, therule on subject to contract may not follow at all times (Christensen, 2015). In Vantage SystemsPty Ltd v Priolo Corporation Pty Ltd [2015] WASCA 21, it has been held by the court that legalintention of the parties could not be avoided in case of email contract and no parties will beallowed to take the plea of subject to contract. A thorough interpretation of the term subject to contract has been made in this case. Ithas been observed in the case that the term subject to contract recognizes the intention of theparties regarding a future contract and it does not constitute a contract itself. If in any contractualagreement, the word “shall be” has been mentioned, it excludes the parties to be legally bound
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