Australian Contract Law: Principles, Case Study, and Analysis

This report provides a comprehensive overview of Australian contract law, focusing on the key principles that govern legally binding agreements. It explores essential elements such as agreement (offer and acceptance), consideration, capacity, intention, and certainty. The report uses the case study of Jinxio to illustrate the practical application of these principles, highlighting the consequences of not having a written and legally binding contract. It analyzes the rights and remedies available under Australian contract law, including the ability to file lawsuits, seek compensation, and pursue equitable remedies. The conclusion emphasizes the importance of adhering to contract law principles to ensure the fulfillment of contractual obligations and protect the rights of parties involved.

Australian contract Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Principles of contract law ...........................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
INTRODUCTION...........................................................................................................................1

INTRODUCTION
Contract law in Australia is mainly concerned with the legal enforcement of promises
which were made as a part of bargaining freely. It is the legislation in Australia which provides
comprehensive coverage of all aspects of contractual agreements between parties. Contract
agreement regulates the contractual relationship between parties. It highlights the different
requirements which are required to be considered by parties in order to enter into legally binding
contract. In context of Australia, contract law provides an individual with certain rights which
they can use if other party fails to fulfil its obligations.
The complete report is based on the case study of Jinxio where an individual have tio
suffer a loss due to lack of written as well as legally binding contract. In report principle of
contract law will be highlighted.
MAIN BODY
Principles of contract law
In context of Australia, contract law has emerged through decisions taken by Australian
courts in Existing cases. A contract can be defined as an agreement giving rise to legal
obligations which are recognised by law. According to the contract law in Australia, both the
parties are required to follow the certain principles in order to enter into legally binding contract,
these principles are :
Agreement between parties : The legally binding contract can not be unilateral. Existence of
agreement between two parties is analysed on the basis of rules related to offer and acceptance.
In simple words, parties in order to enter into legally binding contracts need to follow the rule of
offer and acceptance. That means one party has to make either oral or written proposal or offer to
other party. In addition to this, other party is also required to accept the proposal or offer and
they are required to provide written consent. It is the rule which also states that both the parties
should have intentions to enter into legally binding contract (Beale, Fauvarque-Cosson and
Vogenauer, 2018). In context of given case scenario of Jinxio, it has been analysed that Jinxio
has intention to enter into a legally binding contract but his uncle doest not seems to have
intention to enter into legally binding contract (Young, 2019).
It is the offer which shows an individual intention by the offer or to bound without
discussion or negotiation. An offer or in order to enter into legally binding contract are required

to communicate proposal or offer to other party. In context of given case scenario, if Jinxio had
an inattention to enter into a legally binding contract then at the same time he would have given
the leased document of the shop to Jinxio. But as he orally has promised Jinxio to provide the
leased document, then in such case contract between the parties can be considered to be as valid.
As in given case study, Jinxio has given proposal to him orally and Jinxio has also accepted
orally (Graziano, 2019). In addition to this, Jinxio uncle has not given written consent that he
would provide leased document of the shop to him, so here the contract is not legally binding.
Considerations: It is considered to be as another important principles which are to be followed
by parties in order to enter into legally binding contract (Byrne, 2018.). According to the contract
law in Australia, promise can be enforced as contract only if supported by considerations of both
parties. In other words, promises are is given in return of promise received. In context of given
case scenario, the promise is only made by Jinxio uncle. In addition to this, Jinxio has also
accepted the offer without listening to the interest of his uncle in entering into a contract. But still
In context of given case scenario, can be considered to be as valid as Mr Shao agrees to lease this
shop to Jinxio for 3 years at a cheap rent that is below the market rate and Jinxio has also
accepted the offer.
Capacity : Contractual capacity can be defined as an ability of party to enter into a legally
binding contract. According to the contract in Australia, lack of capacity to contact, in such
situation an agreement is considered to be as void.
Intention : According to the contract law in Australia, both the parties is required to intention to
enter into legally binding contract. The intention requirement has often been approached on the
basis that parties to commercial arrangements are presumed to intend legal consequence. As per
the contract law in Australia, parties those who have entered into a domestic agreement does not
have to face legal consequences (Eisenberg, 2018.). In context of given case scenario, parties has
entered into a domestic agreement, therefore, both the parties who have entered into a legally
binding contract does not have to face legal consequences in case of failure to fulfil their part of
obligations according to terms and conditions in contract.
Certainty :In context of legally binding contract, agreement is required to be sufficiently certain
and it should consists of roles and responsibilities of both parties. Role and responsibilities of
parties defined in contract should be easily identifiable as well as enforceable. There are
basically three problems in context of certainty in contract these are :

1. Contract could be incomplete as parties might fail to reach agreement on all the important
elements. In context of given case scenario, Jinxio and Shao has failed to reach
agreement as they have not fulfilled all the requirements which are needed in order to
enter into a legally binding contract. Both the parties has been provided with suggestion
to consider all the key elements while entering into agreement in the future (Smith,
2018).
2. The agreement might be uncertain due to the vague terms and conditions in the contract.
3. The specific promise might be illusory because agreement effectively gives promiser an
unfettered liberty whether to perform promise. In context of given case study of Jinxio,
promise done by Mr. Shao as the oral contract has given Mr. Shao an unfettered
discretion as whether to perform his promise. And as a result Mr. Shao has not fulfilled
his promise related to providing the leased document and shop on lease to Jinxio, for
three years (Griffin, 2018.). As it was not a legal binding contract, the Jinxio has to suffer
loss of 25000$ as his uncle has not fulfilled his promise and before getting the leased
document of shop Jinxio 25000$ renovation of shop.
According to the contract law in Australia, contract is considered to be as binding, as
long as all the important elements for contract are present. However, in certain situations equity
might intervene as well as make the contract either voidable (Davies, 2018). The principle of non
-estfactrum there are basically two circumstances when equity might intervene as well as
contract might become void these two situations are misrepresentations and special disadvantage.
In context of contract law in Australia, equitable relief seeks to remedy unconscionability and
not to punish the wrongdoer.
In context of given case scenario of Jinxio , as both the parties have not fulfilled all the
requirements such as MR. shao not have entered into a written agreement. In addition to this, It
has been analysed from the case scenario that MR. shao has not given the lease document of
shop to Jinxio it has been assumed that MR. shao does not intend to enter into a valid as well as
legally binding contract. According to the contract law in Australia, only parties who have
enterprise into a legally binding contract has right to file law suit against each other for not
fulfilling promise (O'Sullivan, 2018). In addition to this, in given case study, MR. shao has not
given written consent to Jinxio that he will provide lease document or shop to her on lease. As

Jinxio does not have any prof or evidence that she has entered into a contract with MR. shao
therefore she can not file law suit against MR. shao neither Jinxio can demand for
compensation.
The rights which Jinxio could have got by entering into a valid as well as legally binding
contract are :
She would have right to file law suit against her uncle.
Jinxio could have right to demand for compensation for the losses suffered by her due to
unfulfilled of promise by her uncle.
In addition to this, Jinxio has right to take reasonable measures in order to make sure that she
have reasonable grounds for believing that the consent was fairly obtained.
If Jinxio had entered into a legally binding contract then in such situations she would have right
to terminate in context of breach of contract.
In context of contract law in Australia, If the breached term is a warranty (a non-essential
term), the aggrieved party will only be entitled to damages. In addition to this, under the contract
law in Australis, party might also make provision in their contract related to the payment of the
amount for breaching of contract. Parties has right to seek equitable remedies for specific
performance or injunctions for breach of contract. If Jinxio had entered into a valid as well as
legally binding contract she could have right to terminate for a "fundamental breach. In addition
to this, Jinxio would have right to gain the whole benefit (Pargendler, 2018).
CONCLUSION
It has been concluded from the report that mutual agreement, consideration, capacity,
intention and certainty is very much important in order top enter into a legally binding contract.
The other fact which has discovered from the study is that one party can file law suite against
other parties for not fulfilling contractual obligation or for breaching the contract. It has also
been concluded that and individual can file law suit against other party only if they have entered
into legally binding contract. From the above it has been found that contract law In Australia
provides right to those who have entered into a valid as well as legally binding contract.
It has been suggested that parties should enter into a valid as well as legally binding
contract as this tactic will help them in ensuring the fulfilment of contractual obligations.

REFERENCES
Books and Journals:
Smith, J., 2018. Contract law in Australia [Book Review]. Ethos: Official Publication of the
Law Society of the Australian Capital Territory. (248). pp.60.
Byrne, S., 2018. Defamation law in Australia [Book Review]. Ethos: Official Publication of the
Law Society of the Australian Capital Territory.(248). pp.60.
Young, C.S.R., 2019. Conference keynote: Subject to Contract: Law as an Artistic Medium.
Keynote given at'Art in Law in Art'international conference, University of Western
Australia, Perth.
Beale, H., Fauvarque-Cosson, B., Rutgers, J. and Vogenauer, S. eds., 2018. Cases, materials
and text on contract law. Bloomsbury Publishing.
Graziano, T.K., 2019. Comparative contract law: cases, materials and exercises. Edward Elgar
Publishing.
Eisenberg, M.A., 2018. Foundational Principles of Contract Law. Oxford University Press.
Griffin, P.B., 2018. The Notion of Good Faith in Common Law and Civil Law Contract Law.
Davies, P.S., 2018. JC Smith's the Law of Contract. Oxford University Press.
O'Sullivan, J., 2018. O'Sullivan and Hilliard's the Law of Contract. Oxford University Press.
Pargendler, M., 2018. The Role of the State in Contract Law: The Common-Civil Law
Divide. Yale J. Int'l L.. 43. pp.143.

INTRODUCTION
1