Law of Contract Question 2022

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

LAW OF CONTRACT
1
Table of Contents
Question A.................................................................................................................................2
Question B..................................................................................................................................5

LAW OF CONTRACT
2
Question A
Issue
It is to be determined whether LL was entitled to terminate the ferreting contract with
BR
Rule
The most essential elements of a legally enforceable contract are an agreement
between the parties which consists of an offer and the acceptance of such offer. determination
of a consideration amount which needs to be exchanged between the parties. The capacity of
the parties to enter into the contract as well as their intention and free consent to create a legal
relationship. Without these essential elements, an agreement shall not be considered valid or
unenforceable before a court of law. The parties to the contract need to agree with each other
before entering into the contract, either in writing or orally1.
The offeror makes the offer before the offeree, who either accepts the offer or rejects
it. An offer could be terminated at any time before accepting it even if such offer remains
open till a particular date. Once an offer is rejected, the offeree cannot ask to accept it again.
Similarly, once an offer is accepted, it cannot be revoked. In this regard the element of
intention and free consent of the parties to enter into the contract comes into picture. It is said
that the parties to the contract must have had an intention to create a legal relationship; the
presence of the consideration amount mostly proves the intention of the party as held in the
case of Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd2. Thus, this makes
consideration an important factor for an agreement to be valid and enforceable. Consideration
is the price agreed upon by the parties to the contract based on the work that is to be
1 Eldridge, John Anthony. Codifying Contract Law in Australia: Issues and Obstacles. Diss. 2019.
2 Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309.