LWZ118 Contracts Law Assignment

Running head: CONTRACT LAW
Contract Law
Name of the Student
Name of the University
Author Note

1CONTRACT LAW
Table of Contents
Discussion........................................................................................................................................1
Essential Terms of Contract.............................................................................................................1
Incorporated Terms of Contract.......................................................................................................2
Different types of Express terms.....................................................................................................3
The Electronic Transaction Act.......................................................................................................5
The importance of the Electric transaction......................................................................................6
Online Sales Strategies while formation of the contract.................................................................7
Practical solution of difficult issues.................................................................................................8
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

2CONTRACT LAW
Discussion
Thelonious owns Monk’s Mood Music and running a successful business. However in
present days he lost his significant in market share and therefore he decided to embrace digital
marketing strategies and plan to re-launch the business as MMMJazz which will be a premier
online store for the true jazz lover. Now according to the business structure he needs to use the
electronic transaction act and also form a valid contract for running the business.
The Australian contract law defines the contract as legal relationship where legal
enforcement of promise has been made freely by the parties with the intention to enter into a
contract. The English contract law has made a specific statutory modification of principles where
it helps to make proper contract for the parties. In Australia a contract should carry six basic
elements which help to form the contract which includes agreement, consideration, capacity,
intention to be legally bound, formalities and certainty1.
Essential Terms of Contract
The agreement is the most essential part in the contract where both of the parties
consider the existence of the agreement. One party will offer the consideration while other party
will accept it. Therefore when the party accepts the offer then they will be bound to follow the
terms of the contract. However the first party has the right to withdrawal the offer2.
The parties should have the legal capacity to enter into the contractual relationship.
Therefore minor, unsound mind people never able to enter in a legal contract. The person must
be sound mind who has the capacity to enter into the contract3.
1 McKendrick, Ewan. Contract law: text, cases, and materials. Oxford University Press (UK), 2014.
2 Freedland, Mark, et al., eds. The contract of employment. Oxford University Press, 2016.
3 Freedland, Mark, et al., eds. The contract of employment. Oxford University Press, 2016.

3CONTRACT LAW
The consideration should present when the both parties entering into the contract. When
a person make the promise that means he or she is expecting something of value as an exchange
of the promise. Without the enforcement of the promise of contract it is not valid whether it is
money or goods or a promise.
According to the Australian contract law the parties should have intention to enter into
a legally valid contract which must consist of lawful matters. If the parties has contract for an
invalid consideration then it will be treated as illegal or invalid contract4.
The contract should satisfy all the standards of the legally binding terms because if any
issue arises when the contract is formed then it will be invalid. Therefore the contract can be
made orally or written or through any electronic media.
The certainty of the contract should be sufficient where the rights and obligation of both
parties will apply according to the relevant matters there should be a particular time frame for
complete the contract5.
Incorporated Terms of Contract
There are some other incorporated terms are also applied in the contract. In the implied
terms the party wants to add extra terms in that agreement where it define notice or delivery of
any things to other party or related to the business. The implied terms to the both parties about
the intention to form the contract and the different legal effects will applicable for the parties
according to the Australian contract law. The express terms help to make the contract in legal
and it should contain of promissory statement by written or verbal ways6. The implied terms
4 Freedland, Mark, et al., eds. The contract of employment. Oxford University Press, 2016.
5 McKendrick, Ewan. Contract law: text, cases, and materials. Oxford University Press (UK), 2014.
6 Freedland, Mark, et al., eds. The contract of employment. Oxford University Press, 2016.