Enterprise Law 200909: Problem Solving Essay, Aut 2020

This business law essay analyzes three legal scenarios related to contract law. The first question examines the formation of a binding contract between a shop and a customer, referencing cases like R v Clarke and Australian Woollen Mills Pty Ltd v The Commonwealth to determine offer, acceptance, and consideration. The second question assesses the enforceability of an agreement between a couple, drawing on the case of Merritt v Merritt to determine the intention to create legal relations. The third question explores the legal argument a party can use to set aside a contract due to duress, referencing Barton v Armstrong. The essay applies relevant case law to support the legal arguments and provides a conclusion for each question.

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Author Note

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Question 1
The primary issue in the given scenario is whether a binding and an obligatory contract
has been established between the shop and Graham.
The case of R v Clarke [1927] HCA 47 shall be considered to be a relevant case in
connection to the provided situation. In this case, it was stated that the presence or actuality
regarding an agreement in relation to the parties is customarily analyzed and evaluated with the
help of the rules relating to offer and its acceptance. An offer should be made by a particular
party and that offer should be reciprocated with a clear acceptance.
In the case of Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20, it
was stated that a particular promise may be implemented as contract only when such promise is
reinforced by a consideration.
The case of Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235 is an
important case in this regard. In this case, it was said that a particular party forming a contract
should create the intention for establishing legal relation.
In the case of Whitlock v Brew [1968] HCA 71, it was said that in order to form a contract
the agreement should be certain and complete in an adequate manner and the obligations and
rights of the parties may be recognized and implemented.
The case of R v Clarke [1927] HCA 47 shall be applied in connection to the provided
situation. Hence, it may be said that in the given scenario, an offer has been made by the shop
and that offer has been reciprocated with a clear acceptance by Graham.

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Applying the case of Australian Woollen Mills Pty Ltd v The Commonwealth [1954]
HCA 20 in the given scenario, it may be stated that a promise has been made by the shop to
deliver the antique table to Graham at his home, for which Graham has agreed to pay an amount
of 5000 dollars. Therefore, this contract may be implemented as it has been reinforced by a
consideration.
Applying the case of Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235 in
the given scenario, it must be demonstrated that Graham has the intention for establishing legal
relation in order to from the contract.
Applying the case of Whitlock v Brew [1968] HCA 71 in the given scenario, it may be
said that the agreement between the shop and graham is certain and complete in an adequate
manner and hence a contract may be formed between them. Even the obligations and rights of
the parties may be recognized and implemented.
To conclude, it may be said that a binding and an obligatory contract has been established
between the shop and Graham.
Question 2
The issue in the provided scenario is whether the agreement between Andrew and Susan
is enforceable or not.
The case of Merritt v Merritt [1970] EWCA Civ 6 shall be considered to be a significant
case in relation to the provided situation. In this case, the husband left the wife and it was
decided between them that arrangements must be made in relation to the future. It was agreed by
the husband to make payment of forty pounds each month for the purposes of maintenance. From
that amount the mortgage would be paid by the wife. It was agreed by the husband that when the

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mortgage would be entirely paid off, then the house would be transferred by him from their joint
names to the name of the wife. However, afterwards the husband declined to make a transfer of
the house. It was mentioned by the court that when the specific agreement had been established,
the wife and the husband were not living together anymore. Therefore, it was held that an
intention must have been established by them to make the agreement binding. The house had to
be transferred by the husband to the wife.
The case of Merritt v Merritt [1970] EWCA Civ 6 shall be applied in relation to the
provided situation. Hence, it may be said that when the specific agreement had been established,
Andrew and Susan were not living together anymore. Therefore, an intention must have been
established by them to make the agreement binding.
To conclude, it may be said that the agreement between Andrew and Susan is
enforceable.
Question 3
The issue in the provided situation is what legal argument may be forwarded by Chris so
that the contract relating to sale may be set aside.
Duress may be referred to means by which any individual may be released from any
particular contract, where such individual was coerced or forced to form the contract. In this
regard, the case of Barton v Armstrong [1973] 2 NSWLR 598 shall be regarded as an important
case. It was held that any individual, who establishes contract due to any kind of duress, may
evade that contract, even when the duress might not be the primary reason regarding the
acceptance of the bargain. In this case, it was found that Barton had been threatened by

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Armstrong to have him killed. However, Barton was not successful to prove that the threat
caused Barton to establish the contract.
. The case of Barton v Armstrong [1973] 2 NSWLR 598 shall be applied in relation to the
given scenario. It may be said that Chris has established the contract due to duress, hence, he
may evade that contract, even when the duress might not be the primary reason regarding his
contract with George. However, it may be said that it shall be the obligation of Chris to prove
and demonstrate that the threat by Bruce had caused him to establish the contract with George in
a hasty manner.
To conclude, it may be said that in the provided situation, Chris must show that the threat
by Bruce had caused him to establish the contract with George in a hasty manner so that the
contract relating to sale may be set aside.

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References
Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20.
Barton v Armstrong [1973] 2 NSWLR 598.
Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235.
Merritt v Merritt [1970] EWCA Civ 6.
R v Clarke [1927] HCA 47.
Whitlock v Brew [1968] HCA 71.