Contract Law and The Law of Negligence in Australia

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Contents
Solution............................................................................................................................................2
Topic 1 Contract Law.............................................................................................................2
Topic 3: The Law of Negligence in Australia.............................................................................4
Bibliography....................................................................................................................................6

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Solution
Topic 1 Contract Law
The law of contract is a civil law and which aims at bringing an association amid two private
parties by establishing a legal document amid them. A contract is such legal document which is
formulated by an offeror and an offeree by complying with all the essentials requirements of a
contract formation. Thus, to have a good understanding of contract law, it is first important to
understand its key elements the presence of which ensures a legally binding contract. (Latimer,
2016)
An offer is intention of the offeror which is transferred by him in the form of statement (orally or
in written form) with intent to abide by the terms without bringing any variations and is held in
(Smith v Hughes, 1871). An offer should come in the notion of the offeree to make it binding.
An offer can be made to an individual to class of persons or to the entire world and is held in
(Carlill v Carbolic Smoke Ball Co , 1893).
An offer without any approval has no relevance in law. When the offeree to whom the offer is
made, gives consent to the offer terms unambiguously and absolutely then such an acceptance is
legal in law and is held in (Crown v Clarke, 1927). An acceptance when comes in the notion of
offeror makes a binding agreement and is held in (Empirnall Holdings Pty Ltd v Machon Paull
Partners Pty Ltd , 1888). But, an acceptance by post is enforceable immediately on the post of
the acceptance letter and is held in (Brinkibon v Stahag Stahl und
Stahlwarenhandelsgessellschaft mbH, 1983). (Furmston & Tolhurst, 2010)
But, to convert an agreement into an enforceable contract there is a need of consideration. A
consideration is a benefit or detriment which is accrued to one party in exchange of the promises
that are made by them and is held in (Coulls v Bagots Executor & Trustee Co Ltd, 1967). It is
anything of value and need not be adequate but be sufficient to hold the promises enforceable in
law and is held in (Cole v South Tweed Heads Rugby League Football Club Ltd, 2004).
However, it is also important that the parties who are entering into an agreement must not be
barred in law and must be of sound mind and have attained an age of majority. Also, when
making the promises, both the offeror and the offeree should have legal intent to bind by the
promises so made. In (Balfour v Balfour , 1919) the presumption of legal intent is not present in

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family contract but in (Rose and Frank & Co v Crompton, 1923) the legal intent is present in
commercial contracts. But, these presumptions are rebuttable.
There is yet another kind of contract that is normally found and is called Standard form of
contract.
Generally, the parties to the contract enter into several discussions and negotiations before
making any contract and the terms are binding on both the parties. But, when only one party to
the contract frame the contract terms without the involvement of the other party and such other
party has no choice either to accept the contract or abide by the pre decided term or just reject the
contract. Thus, such contract which is framed by one party are called standard form of contracts
and is analyzed in (Toll (FGCT) Pty Limited v Alphapharm Pty Limited, 2004). (Latimer, 2016)
When any party accepts the standard form of contract, then, the terms of the contract are binding
upon the parties. But, many a times there are certain term which is considered to be unfair in
nature. An unfair term is those term which are of such a nature that hampers the legitimate
interest of the other party or inequality in the bargain power, etc. If the unfair term can be
segregated from the contact then only such term is considered to be unfair and the rest of the
contract is valid otherwise the whole of contract is treated as void.
Now, in contract law, the contracts can be wither written or oral.
A written contract is formed when the term are captured on a piece of paper in black and white
form. Both the parties sign the contract and are bound by the terms of the contract. A written
contract is simple to construe and thus results in having a best piece of evidence in situations of
conflicts. But, verbal or oral contract are made amid the parties by exchange of words and are
bound by the terms that the parties intend to be abide by. These contracts are very difficult to
prove because of lack of any textual evidence. (Law, 2018)
Both the contract has legal sanctity in law and is enforceable.
Now, when the parties establish a contract, then, they are liable to comply with the terms of the
contract. If any party breach any term then the consequences depends upon the kind of term that
is breached. Thus, terms in the contract are of two major kinds.