Breach of Contract: Can Sunita Sue Her Uncle for Non-Compliance?

1
Contents
Solution.......................................................................................................................................................2
Issues.......................................................................................................................................................2
Applicable Laws......................................................................................................................................2
Application of laws..................................................................................................................................3
Conclusion...............................................................................................................................................4
Reference List.............................................................................................................................................5

2
Solution
Issues
The main issue is whether Sunita can sue her uncle Mr Property-Walla for breach of contract and
compel him to comply with his part of contractual obligations?
Applicable Laws
When any contract is made then there are few elements which form the basis of such contract
and without which no contract can be established. The same are agreement (offer and
acceptance), capacity, consideration and legal intention.
Offer is the prime factor in contract formation. When an offeror communicates his desires to the
offeree with an expectation that the offeree will approve the said terms then an offer is
considered to be made. In the leading case of Carlill v Carbolic Smoke Ball Co (1893) the
concept of offer was determined by the Court of Appeal. an offer can be made orally or in
written words. A contract can be made to a group or individual or to the world at large. (Graw
2012)
The office’s approval to the term of the offer is considered to be an acceptance in law (Empirnall
Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1988). The acceptance so made must
correspond with offer and the acceptance must be conversed order to hold the same as valid in
law. (Graw 2012)
The combination of an offer and acceptance makes contract.
The third element that is required for the formation of contract is the presence of legal intention
amid the parties.
Legal intention means that the parties are ready to apply the terms legally and is held in Air
Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd [1989] 2 NSWLR 309. The basic
preposition regarding the presence of legal intonation is that when the parties are in domestic
relationship then they are not willing to enter into any kind of legal relationship and is rightly
held in Balfour v Balfour [1919] and Jones v Padavatton [1969]. But, when the parties are in
commercial relationship then it is generally presumed that the parties have legal intonation and
they want to establish a contractual relationship and is held in Rose and Frank & Co v Crompton
[1923]. (Latimer 2012)
But, it was held that at times these general prepositions can be rebutted by establishing evidence.
For instance in Simpkins V Pays (1955) the parties are in domestic relationship but as per the
evidence that are valid down the parties have legal intonation to make a contractual relationship
and thus there is valid contract amid the parties.