Elements of Agreement and Consideration in Contract Formation - Desklib

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Contents
Case Study.......................................................................................................................................2
Question (a).....................................................................................................................................2
Issue.............................................................................................................................................2
Relevant Law...............................................................................................................................2
Application of Law......................................................................................................................3
Conclusion...................................................................................................................................4
Question (b).....................................................................................................................................4
Issue.............................................................................................................................................4
Relevant law.................................................................................................................................4
Application of Law......................................................................................................................5
Conclusion...................................................................................................................................6
Bibliography....................................................................................................................................7

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Case Study
Question (a)
Issue
To analyze the element of agreement required for the formation of a legally binding contract
between Connor and Harry?
Relevant Law
The law of contract has laid down several elements on the compliance of which any contract can
be made between two or more intending parties. A contract is nothing but an agreement which
has forcibility of law accompanies with consideration and legal intention of the parties.
(Lambiris and Griffin 2017.)
An agreement is created between two parties when there is a legal offer which is supported with
a legal acceptance by the offeror and the offeree respectively.
An offer is a kind of proposal in the form of a statement made orally or in writing or conduct
which moves from an offeror to an offeree. An offeror through the proposal specifies the terms
that he is willing to abide by and thus conveys the same to the offeree and is held in (Harvey v
Facey 1893). An offer is valid if made to an individual or to the world. But as per (Carlill v
Carbolic Smoke Ball Co 1893) it is very necessary that when the offer is made, then, it is only
when the offeree comes in the knowledge of the same, it is then, the offer stands concluded and
binding upon the parties. It was held in (Carlill v Carbolic Smoke Ball Co 1893) that an offer is
valid if made to an individual, group or world but the only requirement is that the offer must
reach the offeree. An offer can be made for certain time frame and if no acceptance is given
within such time then the offer lapses and is held in (Dickinson v Dodds 1876) wherein it was
held that of the offer is communicated for a time frame, then, the acceptance must be made
within such time otherwise the offer stands discharge and no later acceptance will make a
binding contract amid the parties. (Latimer 2011)
Now, the offeree has the right to give his confirmation to the offer which is made to him. An
acceptance is the approval which is made very clearly and is in correspondence of the offer.

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There is no changes that are brought in to the terms of the offer. If the offeree while accepting
the offer brings variations to the offer terms, then, as per (Hyde v Wrench 1840) the acceptance
is not the mirror image of the offer. Such an acceptance is invalid and is called counter offer. The
counter offer which is made by the offeree is considered to be a new offer. Further, when the
offer is made and the offeror requires that the communication of the acceptance must be made in
certain mode, then, the acceptance should be made only in such mode. Variation in the mode is
no acceptance; however, as per (Tinn v Hoffman 1873) slight variation is permissible, that is,
acceptance to be made by post but if the acceptance is made by telegram then the same is also
held to be valid in law. (Caffrey 1991)
Also, as per (Entores Ltd v Miles Far Eastern Corp 1955) and (N M Superannuation Pty Ltd v
Baker 1992) an acceptance should come in the knowledge of the offeror to make it binding. But,
when the acceptance is made by letters or the acceptance is posted, then, as per (Adams v
Lindsell 1818)the acceptance is considered to be made and communicated to the offeror as soon
as the letter is posted. There is no need that the letter should reach the knowledge of the offeror.
(Latimer 2011)
Application of Law
As per the facts, Connor Worpel is a consultant in a Human Resource department and he has
expertise in anti- discrimination policy and practices. He is practicing well but is always willing
to engage to seek new clients and to create business opportunities.
On Saturday, Connor Worpel was present at his brother (Blake) engagement. Harry Nash
approached Connor Worpel. Harry Nash is a business owner and both Connor Worpel and Harry
Nash had met privately at the 21st birthday of Blake.
General negotiations took place amid Connor Worpel and Harry Nash, wherein Harry Nash told
Connor Worpel that he is willing to revamp his employee procedures and thus there are chances
that he might use the expertise of Connor Worpel.
At this stage, there is a normal communications that took place amid the two and there is no
exchange of any kind of proposal from either side of the parties.