Murdoch University Commercial Law Case Analysis Assignment

This case study analyzes two commercial law scenarios. The first case examines whether a binding contract exists between Julie and Leila regarding a lost gold chain and locket, considering the elements of offer, acceptance, and communication. The analysis considers whether Julie's actions constituted acceptance of Leila's offer of a reward and the implications if Julie hadn't read the advertisement. The second case evaluates the damages Adam is entitled to receive from Edwin for breaching a contract to sell a vintage Rolls Royce. It explores the remedies available for breach of contract, including damages and specific performance, and considers the impact of the car's vintage status on the assessment of damages. The analysis relies on legal principles and case law to determine the outcomes of both scenarios. The assignment covers concepts like offer, acceptance, intention to create legal relations, breach of contract, and damages.

Running head: CASE ANALYSIS
CASE ANALYSIS
Name of the student
Name of the university
Author note

1CASE ANALYSIS
Answer to Question 1
Issue
The issue involved in the particular case is whether there is an existence of a binding
contract between Julie and Leila. Another issue concerned whether the approach is different in
case Juile has not read the announcement and expressed about incentive by April after she
discovers and return chain and locket.
Rule
The requisite for the contract to be legally enforceable generally engage in between two
parties. Thus to establish the arrangement binding lawfully the criteria which require to be
satisfied involves. Firstly the conference of the contracting parties minds that is demonstrated
through the method of acceptance and offer (Frey, 2015). Secondly, there should be the presence
of consideration as the agreement in the absence of consideration is not enforceable in the eyes
of law. Thirdly there should be the existence of intention for the formation of the legal
relationship between the parties to the contract (Wolfson & Burright, 2018). Fourthly the
contractual parties should have the capability to enter into the contract and the parties should
voluntarily consent to an arrangement that is to say consensus as idem is one of the basic
requisites of a valid contract (Jung & Krebs, 2019). In the case of Taylor vs. Caldwell is
landmark case of contract law that pronounced by Justice Blackburn create doctrine of
impossibility in common law. The offer is said to be expressing inclination by the contractual
parties to legally binding agreement on the particular stipulation that is underlined and the
intention of the party to be binding on approval by the other side that is offeree (Adriaanse,
2016). The offer entails exchange terms, the willingness of offeror to be binding by the terms of

2CASE ANALYSIS
the contract in addition to that assign to offeree the authority to bind the party who gives offer so
the offeree has no option to decline the offer on accepting the same. The acceptance of an offer is
considered as unconditional acceptance of the conditions as specified in the offer. In the case of
Cutter vs. Powell is the contract law that focuses on considerable conduct in contract. it is
concluded by the court that there is conclusion of express contract by parties there is no inference
of terms in contract. Thus the major requisites under Contract law are the contractual parties
must confer voluntary consent to an arrangement. Furthermore, it indicates that one party to the
contract intimidates others in signing the agreement by the application of undue influence or
duress it is not treated as a valid contract in the eyes of law (Smits, 2017).
The contract is determined as the promise that is legally binding in between the two
contractual parties for the purpose of complying the liability in return of something that has
value. Thus for the contract to become legally valid, there should be the presence of agreement,
consideration, capacity and also the intention of the contractual parties (Laycock & Hasen,
2018). It is also noted that all arrangement cannot be held as a contract that obliges the parties to
fulfil the obligations after the same is concluded. So it can be said that all contracts are
agreements but all agreements are not contracts. The agreements in order to be contract must be
legally enforceable. In addition to that, the agreement in order to be legally binding must comply
with the necessary requisites. In the arrangement, the parties who engage in the same must have
an intention for entering into a legally binding contract. The common assumption in case of
commercial arrangement is the parties to the contract must have intention to come into the
legally binding agreement. In the social state, there is an absence of intention in general for the
arrangement to become enforceable in law. Thus it is left on the discretion of the parties who
desires to treat the arrangement as the contract for establishing the parties to the contract

3CASE ANALYSIS
intended to arrive in the contract that is legally binding. The agreement occurs when there is an
offer that is made by one party and there must be acceptance of an offer. The offer is treated as
something diverse from that of invitation that invites others to create an offer and there is an
absence of intention to make it binding contractually. For instance catalogues, advertisement, as
well as brochures where the product price are not registered, is not treated as offer however the
same is treated as an invitation. The acceptance of the terms as listed in the offer should be
unconditional and the same should be communicated to the offeree. In case there exist any
negotiation in between the contractual parties that is being treated as a counteroffer and not an
acceptance. In the case Balfour vs. Balfour [1919] 2 KB 571 is one of the landmark case in
contract law where it had been held by appellate court unanimously that there was an absence of
an agreement that is enforceable though there is the difference in depth of reasoning. Justice
Lord Atkin reinforce that there is an absence of intention to create a legal relationship. Thus it is
held that rebuttable presumption as against the intention to establish an agreement that is legally
enforceable when the arrangement is in nature domestic.
Analysis
Thus by analysis this case where Julie after reading announcement find lost chain and
locket on way after knowing the same he returns it to the owner of goods that is Leila and also
assert rewards for finding the same (Poole, 2016). It is held that there is no establishment of
binding contract in between Leila and other parties that is Julie. The agreement in order to be
binding must have an offer, acceptance, intention, capacity and free consent. The acceptance in
order to be legally enforceable must be absolute and unconditional and the same should be
communicated to the offeror (Arbel, 2015). Thus by relying upon the case of Carlill vs. Carbolic
Ball company is the decision of English law in contract that held the advertisement atht specifies

4CASE ANALYSIS
certain terms for getting reward create unilateral offer that can be agreed by any individual who
comply with the terms. The acceptance in the absence of communication is not construed to be
legally binding. The communication may be in the form of verbal or written that is made to the
offeror. Thus silence, in general, will not be amounting to acceptance (Rendleman & Roberts,
2018). The contract law of Singapore is based largely on common contract law of England. The
incomplete arrangement is not amounting to a legally enforceable contract. The agreement is
incomplete as there is an absence of intention to create a legal relationship. In the case of Hadley
vs. Baxendale is the English case law of contract that set rule for derermination of damages from
violation of contract. Moreover in the case of Dickinson vs. Dodds 2 Ch D 463 is the case of
contract law that determine that withdrawal of offer by third party is effective like withdrawal
from individual who create offer.
If the advertisement is not read by the Julie and after finding the lost goods he returns it
to the owner and asks for reward then also Leila was not bound to pay him to reward for finding
lost goods as there is no establishment of legal relationship in between the parties. The legal
relationship establishes by the formation of offer and acceptance and communication of same by
one party to another.
Conclusion
Thus it can be concluded from the discussion made above that there is no establishment
of a legally enforceable agreement between the parties as there is an absence of communication
by the one party to another. The essential requisites of a binding contract are communication and
establishment of legal relationship which is an absence in the instant case.

5CASE ANALYSIS
Answer to Question 2
Issue
The issue involves in the instant case is what damages are Adam entitled to get as
remedies for an act that is resulting from the violation of contractual terms committed by Edwin.
Another issue involves in the case is whether the approach is diverse if the motor car which is the
subject matter of the contract was the late model.
Rule
The rule involves in the particular case scenario is a remedy that is claimed by the
aggrieved party in the manner of damages for breach of the contractual terms that is mutually
agreed by both parties to the contract. The contract when legally enforceable in between the
parties then one party is under a legal obligation to comply with the same. Nevertheless, in case
of committing a breach of contractual terms by one party resulting which the other party incur
loss then the party causing breach is liable to pay damages. In the case of Anglia Television Ltd
vs. Reed is the English case law on contract that concentrate on the liberty to rely upon
compensation for the loss that flows from violation of contract. When there is the existence of a
contract that is legally binding and also valid the violation of contractual terms happens when the
party who defaults that is under contractual obligation without a legitimate excuse. The contract
can fail to conduct due to non-performance by the party who promises to perform the same, late
performance, doing the thing which the party who is defaulting promise not to conduct. In
addition to that preventing from compliance of contractual obligations and defective
performance that is to say the defaulting party to the contract miscarries to comply with the
objectives or the end states that is promised by him. Thus there exist no necessity to establish

6CASE ANALYSIS
that the party who is at defaulting intentionally miscarries to comply with the contractual
obligation. Therefore unless it is otherwise provided by contract there exist no necessity to
establish that defaulting party to agreement miscarries to practice precaution that is reasonable in
conducting promise. Thus referring to the case law of Farley vs. Skinner it was held by the court
the avaibility and measure of injury for distress. In the case of Investor Compensation Scheme
Ltd vs. West Bromwich Buiding Society laid down that the contextual method must be
considered to interpreting the legally binding agreement. Nevertheless all failures to conduct
in contract construe breach of contractual terms. The two essential requisites that are required to
fulfil to constitute breach are as follows. Firstly the defaulting party to the contract miscarries to
conduct an obligation that is binding under contract. Secondly, there is no existence of legitimate
excuse on part of the defaulting party who fails to comply. Henceforth the remedies that are
available for breach involves monetary compensation that is designated as damages. The
violation of contractual terms may authorize the innocent party in an authority to dismiss the
contract. the specific performance of the contract is also available by which the defaulting party
has been compelled to carry out the contractual obligation. The specific performance of the
contract is implemented in an exceptional situation where the damaged that is awarded is held to
be inadequate in comparison to the performance of obligations. In the case of Jason & Young,
Inc. vs. Kent, 230 N.Y. 239 (1921) is the landmark case of contract law that dealt with the issue
of a material breach of contractual terms in addition to that substantial performance of the
contract. it is held that the defect is relevant and the court determines that there was the
considerable performance of the contract and also justify the breach as it the terms on which the
breach was conducted by the party is approved by other at the time of formation of the contract.

7CASE ANALYSIS
In the case of Robinson vs Harman (1848) 1 Ex 850, it had been held that Robison in
the case recovered successfully damages for loss of bargain. In case the party approve to accept
good lease knowing that he does nor posses good title then the aggrieved party is entitled to
recover compensation for breach of contract. In the case law of Peevyhouse vs. Garland Coal &
Mining Co. concentrate on specific performance of the obligations that is contractual will be
approved and assess the anticipation for damages
Analysis
Therefore by analyzing a particular case, it is found that Adam agrees to purchase Rolls
Royce from other party named Edwin who is the dealer of vintage cars. There is establish of
contract in between Adam and Edwin subsequently Edwin denied to comply with the terms of
contract as he has another customer who agrees to pay $700 000 for that car. By making broader
evaluation and after considering the legislation governing contract law it had been establishing
that there the act committed by Edwin constitute a breach of contract. Furthermore, it is noted
that after entering into a binding contract with one party he cannot terminate the same at his own
discretion the contract can only be terminated on failure to perform contractual obligations.
Admin in this situation is authorized to get damages from Edwin. The court of law can order the
defaulting party to pay to the party who is aggrieved by breach of contract for economic loss that
he incurred resulting from the violation. The same is designated as contract damages. The
damages which are awarded by the court is in the manner of liquidated damages, specific
performance of the contract, or injunction. Thus the aggrieved party that is Adam may move to
the court for claiming specific performance of the contract which compel the defaulting party to
carry out the terms of the contract or liquidated damages

8CASE ANALYSIS
Thus if the motor vehicle is late model then the approach that is adopted by Adam is
same as in case of non-compliance of the contractual obligation that is agreed by both party at
the time of formation of contract then the other party is under legal obligation to conduct the
same irrespective of motor vehicle which is subject of the contract. The legal advice that helps
the aggrieved party that is Adam to recover for loss that he sustained is to file a case for damages
under contract law. the four things need to establish is establish the existence of subject
Conclusion
Thus it can be concluded from the discussion mentioned above that Adam is entitled to
get damages from Edwin as he promises to sell him the car at the agreed price of $ 500,000 and
the contract is binding after it is agreed by both contractual parties. Henceforth Adam is
authorised to claim damages for breach of the agreed condition of binding contract from Edwin.
The contract law that governing the rights and obligation of parties and also affords protection to
the aggrieved party for violation of terms of contract. the non-compliance by the party is
excusable only if the termination provision is laid in the original arrangement.

9CASE ANALYSIS
Reference
Adriaanse, M. J. (2016). Construction contract law. Macmillan International Higher Education.
Anglia Television Ltd vs. Reed [1972] 1 QB 60
Arbel, Y. A. (2015). Contract remedies in action: Specific performance. W. Va. L. Rev., 118,
369.
Balfour vs. Balfour [1919] 2 KB 571
Carlill vs. Carbolic Ball company [1892] EWCA Civ 1
Cutter vs. Powell 101 ER 573
Dickinson vs. Dodds 2 Ch D 463
Farley vs. Skinner [2001] UKHL 49
Frey, M. A. (2015). Essentials of contract law. Cengage Learning.
Hadley vs. Baxendale [1854] EWHC J70
Investor Compensation Scheme Ltd vs. West Bromwich Buiding Society [1997] UKHL 28
Jason & Young, Inc. vs Kent, 230 N.Y. 239 (1921)
Jung, S., & Krebs, P. (2019). The Essentials of Contract Negotiation. Springer.

10CASE ANALYSIS
Laycock, D., & Hasen, R. L. (2018). Modern American Remedies: Cases and materials. Wolters
Kluwer Law & Business.
Peevyhouse vs. Garland Coal & Mining Co, 382 P2d 109
Poole, J. (2016). Textbook on contract law. Oxford University Press.
Rendleman, D., & Roberts, C. L. (2018). Remedies: Cases and Materials (2018). West
Academic.
Robinson vs Harman (1848) 1 Ex 850,
Smits, J. M. (Ed.). (2017). Contract law: a comparative introduction. Edward Elgar Publishing.
Wolfson, S., & Burright, M. (2018). Essentials of a Publication Agreement.