Validity of Contractual Consideration and Breach of Contract under Australian Consumer Law

713394

Solution 1
A

Issue
Whether Magda and Avinash had a
valid contract?

Law
Main contractual elements includes:
Offer
An offer is the proposal made by an offeror to an offeree communicating his
desires with a hope of approval.
Iinvitation to treat are not offers
An offer can be revoked before the same is accepted.
An open offer must be supported with value to make it binding.
Acceptance
When the offeree confirms the offer then it is an acceptance.
If offer not accepted, but the terms of offer are changed, then, it is counter
offer.

Consideration
Anything of value which is required to support the offer and acceptance in
order to make them enforceable in law.
Legal intention
The parties must have legal intent to bind by the contract and enforce in law.
Capacity
The parties should be of sound mind and must be major.

Application
i. Magda sells her prints through website and studio.
ii. She offered ‘Paris Stilton’ for sale @ $2,000 with description- ‘a limited
edition of only 3 prints’. Only one was unsold.
Advertisement is not an offer but an invitation to sell.
On 19th February
ii. An offer by Avinash @$1,600.
iii. Magda reject offer and quote new offer @ $1800.
So, a counter offer which cancelled the offer of Avinash.
Avinash asks Magda to hold the offer till 21st February but without
consideration.