University Contract Law Assignment: Fallon and Blake's Case Study

This assignment delves into a contract law scenario involving Fallon, her father Blake, and a potential agreement regarding lawn mowing. The core issue revolves around whether a legally binding contract was formed between Fallon and Blake when Blake offered to pay Fallon $50 for mowing the lawns, and Fallon responded with an ambiguous statement. The assignment meticulously examines the essential elements of a contract, including offer and acceptance, consideration, capacity, intention to create legal relations, and certainty. It applies relevant legal principles and case law, such as *R v Clarke*, *Australian Woollen Mills Pty Ltd v The Commonwealth*, *Blomley v Ryan*, *Ermogenous v Greek Orthodox Community of SA Inc.*, and *Whitlock v Brew*, to the facts of the case. The analysis explores whether each element was satisfied, ultimately concluding that no contract was established due to the lack of acceptance and intention to create a legal relationship. The assignment demonstrates a clear understanding of contract law principles and their application to a practical scenario.

Running head: CONTRACT LAW
CONTRACT LAW
Name of the Student
Name of the University
Author’s Note

1CONTRACT LAW
Issue
Whether any contract has been made between Fallon and Blake regardin the mowing of
the lawns.
Rule
Five essential elements are there for the formation of a contract which legally binds the
contract. The first essential is that there needs to be an offer and acceptance between the parties
of the contract, one must make an offer to another and acceptance is required on the part of the
person to whom the offer has been made. It has been held in the case of R v Clarke1 that for the
purpose of creating any contract there is necessity of showing that one has acted in reliance or on
faith upon the promises made to him.
The second essential which is to be fulfilled is the consideration; any promise would only
become enforceable as any contract if the same has been supported with a consideration.
Consideration could be of anything like the money or like a promise of undertaking or of not
undertaking any specific act. In the case of Australian Woollen Mills Pty Ltd v The
Commonwealth2 it was held by the court that the alleged offer must be intended of giving rise to
an obligation and in absence of any such intention, whether imputed or actual, the alleged offer
would not be leading to a contract.
Another essential of a valid contract is the capacity of the parties, the parties must be
capable of entering into a contract that is they must not be below the age of 18 years and must
1 [1927] HCA 47
2 [1954] HCA 20

2CONTRACT LAW
not be of unsound mind. In Blomley v Ryan3, the court held that a mental capacity is required by
law and might be described as capacity of understanding any transaction at the time of it being
explained.
There needs to be an intention of creating a legal relationship which is the fourth essential
element of a valid contract. Generally the arrangements of commercial nature are intended of
creating the legal consequences, which is not the same in the case of agreement of domestic or
social nature. In the case of Ermogenous v Greek Orthodox Community of SA Inc.4 it was held by
the court that a contract would only be executed when the parties intend of being legally bound
by the contract.
Certainty is the final essential which is to be satisfied for the enforceability of a contract.
The subject matter of the contract needs to be certain for the purpose of making any contract
enforceable. It was held in the case of Whitlock v Brew5 that a contract would become void if the
subject matter of the contract is uncertain.
Application
In this given scenario, Fallon who is 20 years old lives with her father Blake and
stepmother Krystle, who were going for a holiday leaving Fallon at home. Blake offered Fallon
$50 for mowing the front and back lawn, and in reply Fallon said that she will think about the
offer. After returning from the holiday Fallon asked Blake to give the offered amount as she
mowed the lawn, of which Blake rejected by saying that no commitment was made on the part of
Fallon.
3 [1956] HCA 81
4 [2002] HCA 8
5 (1968) 118 CLR 445

3CONTRACT LAW
In this case an offer was made by Blake for paying $50 but no acceptance had been made
on the part of Fallon. Thus the essential of offer and acceptance had not been fulfilled in this
scenario, the case of R v Clarke6 can be referred here in this scenario. The condition of
consideration exist in this scenario in support of the offer as Blake promised to pay $50 to Fallon
on the fulfillment of the consideration of mowing the front and back lawns, which can be
supported with the case of Australian Woollen Mills Pty Ltd v The Commonwealth7. The parties
were capable of entering into a contract as both of them were not below the age of 18 years and
both of them were sound mind. The case of Blomley v Ryan8 would be suitable in this situation
and can be referred appropriately. The subject matter of the contract was also certain and clear as
Blake offered Fallon to pay $50 in consideration of mowing the front and back lawn of their
house. So the consideration which was to be undertaken was clear and certain. The case of
Whitlock v Brew9 can be appropriately referred here in this circumstance. However, there was no
intention of creating any legal relation by both of the parties. None of the parties had the
intention of making any legal claims against the breach of the contract. This can be supported
with the case of Ermogenous v Greek Orthodox Community of SA Inc.10.
Conclusion
Therefore it concludes that no contract has been made between Fallon and Blake regardin
the mowing of the lawns.
6 [1927] HCA 47
7 [1954] HCA 20
8 [1956] HCA 81
9 (1968) 118 CLR 445
10 [2002] HCA 8

4CONTRACT LAW
Reference
Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20.
Blomley v Ryan [1956] HCA 81.
Ermogenous v Greek Orthodox Community of SA Inc. [2002] HCA 8.
R v Clarke [1927] HCA 47.
Whitlock v Brew (1968) 118 CLR 445.