Assignment on Contract Law | 1

Running head: CONTRACT LAW
CONTRACT LAW
Name of the Student
Name of the University
Author’s Note

CONTRACT LAW1
Issue
Whether any contract has been made between Fallon and Blake regardin the mowing of
the lawns.
Rule
Five essential elements are there for the formation of a contract which legally binds the
contract. The first essential is that there needs to be an offer and acceptance between the parties
of the contract, one must make an offer to another and acceptance is required on the part of the
person to whom the offer has been made. It has been held in the case of R v Clarke1 that for the
purpose of creating any contract there is necessity of showing that one has acted in reliance or on
faith upon the promises made to him.
The second essential which is to be fulfilled is the consideration; any promise would only
become enforceable as any contract if the same has been supported with a consideration.
Consideration could be of anything like the money or like a promise of undertaking or of not
undertaking any specific act. In the case of Australian Woollen Mills Pty Ltd v The
Commonwealth2 it was held by the court that the alleged offer must be intended of giving rise to
an obligation and in absence of any such intention, whether imputed or actual, the alleged offer
would not be leading to a contract.
Another essential of a valid contract is the capacity of the parties, the parties must be
capable of entering into a contract that is they must not be below the age of 18 years and must
1 [1927] HCA 47
2 [1954] HCA 20