Legal Case Contract: Understanding the Essential Elements and Implications

LEGAL CASE CONTRACT
LAW
Legal Law
[DATE]
[COMPANY NAME]
[Company address]

Table of Contents
Answer given to question no-1....................................................................................... 2
a)......................................................................................................................... 2
Issues.............................................................................................................. 2
Rule................................................................................................................. 2
Application...................................................................................................... 3
Conclusion....................................................................................................... 3
b)........................................................................................................................ 4
Issue................................................................................................................ 4
Rule................................................................................................................. 4
Applicability..................................................................................................... 4
Conclusion....................................................................................................... 5
Answer given to the question no-2...................................................................................5
a)......................................................................................................................... 5
b)........................................................................................................................ 7
Case Laws.......................................................................................................... 8
Other.................................................................................................................. 8

Introduction
This report reflects the key understanding on the contract laws and essential elements of the
contract which needs to be complied by the parties to the contract. These essential elements are
accompanied with the legal capacity of the parties, agreement, acceptance, consideration and term and
condition of the contract. This report reveals the key understanding of the contract.
Answer given to question no-1
a)
Issues
Is there any contract between Avinash and Café?
Rule
In the given case Avinash is a regular customer of a local café. The café provides its services in a
unique way in which the customer has the option to choose his order from the menu displayed on a
screen. Hence there is no direct order and payment transaction occurred between the customer and
café personnel. On a random day Avinash visited the café and ordered a coffee and Danish pastry.
While consuming his meal he found a piece of metal into the pastry due to which his tooth had
broken. When Avinash demanded for the compensation against his damage the management of café
has escaped from its liability by showing him the clause mentioned on the café’s ticket. Here the
query occurred that when the contract has been formed between the café and Avinash. For this we
will have to understand about the features of contract. As in the case of Australian Woolen Mills v The
commonwealth case1, it was held that contract is considered as an agreement between two parties
which creates a legal obligation of performance on both parties. Also it has various essential elements
which convert an agreement into a contract. To properly understand the concept of contract we have
to discuss about its elements first. Initially there must be an offer to begin a contract which includes
the details of the agreement and the terms and conditions which shall be followed by the parties. The
second significant element of contract is acceptance. An agreement formed between the parties when
the offeree accepts the offer given by offerer. In the case of Carlill v Carbolic Smoke Ball Co Court of
Appeal 2, it was held that proposal rejected cannot form an agreement among the parties 3. The second
party gives his consent on proposal after considering all the details, terms and conditions of the
agreement. Its consent must be free for establishing a valid contract. Apart from that there should be
1 [1954] HCA 20; 92 CLR 424]
2 [1893] 1 QB 256; [1892] EWCA Civ 1
3 Rod Thomas. "The Interpretation of Documents on the Register: Issues for England and Wales, Australia and
New Zealand." )(2019)17(3)Australia and New Zealand