Legal Analysis of Contractual Issues in Wanda's Case

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Contents
Solution 1.........................................................................................................................................2
Issue.............................................................................................................................................2
Relevant Law...............................................................................................................................2
Application of law........................................................................................................................2
Conclusion...................................................................................................................................3
Solution 2.........................................................................................................................................3
Issue.............................................................................................................................................3
Relevant Law...............................................................................................................................3
Application of law........................................................................................................................3
Conclusion...................................................................................................................................4
Solution 3.........................................................................................................................................4
Issue.............................................................................................................................................4
Relevant Law...............................................................................................................................4
Application of law........................................................................................................................4
Conclusion...................................................................................................................................5
Bibliography....................................................................................................................................6

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Solution 1
Issue
Is there a valid contract made between Wanda and her parents?
Relevant Law
The law of contract submits that any two or more parties who wants to enter into a relationship
and wants to abide themselves by mutually decided terms and conditions can enter into a
contractual association. The parties who formulate the contract are legally bound to comply with
the terms of the contract in order to avoid any kind of breach and its consequences.
A contract can be made when an offer is made by the offer which is affirmed by the offeree in
exchange of legal consideration by the parties who are capable to undertake contractual
relationship with legal intention. (Graw, 2012)
When the offeror communicates his willingness to an offeree to abide with certain stated terms
and conditions, then, such communication is called an offer. As per (Carlill v Carbolic Smoke
Ball Company, 1892) an offer can be made orally or verbally or by conduct. The offeree when
confirms the offer made to him absolutely, then, it is an acceptance in law resulting in agreement
formation and is held in (Crown v Clarke, 1927).
The offer and acceptance must be made by the parties with an intention which is not gratuitous
but is made with legal intent.
The legal intention of the parties is the contractual elements which enforces the promises upon
the parties to the contract. Legal intention simply submits that the parties are willing to abide by
the parties as per the law of the land and if any party does not abide by the contractual terms then
they are willing to face the legal consequences and is held in (Air Great Lakes Pty Ltd v KS
Easter (Holdings) Pty Ltd, 1989).
In (Balfour v Balfour, 1919) it was analyzed that the parties sharing family or domestic
relationship does not intent to abide by their promises legally. As per (Jones v Padavatton, 1969),
relationship which is domestic lacks legal intention. Likewise, in (Rose and Frank & Co v
Crompton, 1923) when there is presence of commercial association, then there is a presumption
of the presence of legal relationship. (Waddams, 2010)

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But, if the parties can prove that they intent to abide by the contract legally even if they are in
domestic relationship, then the contract is deem to exist amid the parties and is enforceable in
law and is held in (Ermogenous v Greek Orthodox Community of SA Inc, 2002).
When the parties exchange promises then such parties must be capable as per the law of the land.
The parties must have attained the age of majority and must not be of unsound mind and is
analyzed in (Nash v Inman, 1908).
The law is now applied.
Application of law
Now, Wanda is seventeen years old and thus is not a major as per the law of the land. She is
about to complete her college and the unit is very hard. Her parents are worried whether she will
be able to pass the unit or not and thus they made a promise to her that clothes worth $ 3,000 will
be given to her if she completes her clothes with High Distinction. Wanda agrees to the same.
Thus, an offer is made by the parents and the same is accepted by Wanda.
Now, the parents and Wanda are in family relationship so there is absence of legal intention by
applying the law in (Balfour v Balfour, 1919). But, as per the facts, Wanda worked very hard on
the promises made by her parents that they will buy her clothes if she gets High Distinction.
Thus the parties made promises with the intention to comply and abide with the same legally.
Thus, by applying (Ermogenous v Greek Orthodox Community of SA Inc, 2002) there is
presence of legal intention between the parties.
So, as Wanda got High Distinction which she got by acting as per the promise made her parent.
So, there is legal intention.
Also, Wanda is not a major when the contract is made by her with parents. But, the promises are
exchanged for her benefit and thus as per (Nash v Inman, 1908) the contract is valid between
them.
Conclusion
So, Wanda can bring a legal action against her parents if the parents do not abide by the
contractual terms and made her buy new clothes of $ 3000.