Business Law & Ethics: Enforceable Contracts, Promissory Estoppel, and Consideration

INTRODUCTION TO BUSINESS LAW & ETHICS
CONTRACT LAW
[Pick the date]
Student Name

Question 1
Issue
The issue is to comment whether Fran and Macro have enacted an enforceable contract or not.
Rule
Two parties would enter into enforceable contractual relationship only when the given essentials
are satisfied.
 Presence of lawful agreement (valid offer and acceptance)
 Presence of valid consideration for the contracting parties
 Intention on the part of parties to enact enforceable contract
Intention of the parties to enter into contractual relationship is a key requisite aspect when the
parties are connected through the social/ domestic relation. It is because when the family
members are enacting an agreement, then it is assumed that in pre-contractual phase, parties do
not have intention to make legal relationship and thus, no enforceable contact would be formed
between the parties. Hence, the innocent party cannot sue the other party for not performing the
contractual obligations. The evidence of this aspect can be viewed in the judgement of Jones v
Padavatton1 case. Hence, it is essential that parties with domestic relations must express the
intention to create legal relations for enacting an enforceable contract verbally or through
appropriate conduct2.
Application
It can be seen from the case information that Fran and Marco are brothers and hence related.
Therefore, the nature of agreement enacted between the parties is of domestic nature. Hence, it is
essential to determine whether the parties have clear intention to enact enforceable contract or
not. It is apparent from the facts that in pre-contractual period, Fran and Marco have hired a
lawyer to complete the employment agreement and other essential aspects. This is the
representation of the fact that Fran and Marco had clear intention to enact legal relation and
hence, Fran has to complete the contractual liability or else Marco has the legal right to sue Fran
for not fulfilling the contractual duties.
Conclusion
It can be concluded based on above facts that Fran has to complete the contractual obligations for
Marco or else Marco can sue Fran and ask for damages.
1 Jones v Padavatton [1969] 1 WLR 328
2 Michael Lambiris, Griffin Laura, First Principles of Business Law (Oxford University Press., 10th ed, 2017)
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