4 Step Process to Contract Law Essay

Question a) criterion OneThe principle of law is that for a valid constringe to be formed thither moldiness be an engagement reached by both parties. measuring Two thither are three main elements for the shaping of a legally fecundation puzzle, intention, agreement and retainer. The requirement that requires discussion here is the existence of an agreement by the parties to enter into a legally binding contract.An agreement means a consensus on at least those prerequisite considerations needed for a determineable transaction. The physical process of reaching an agreement is generally analysed as involving an spell and acceptance. Where the suggest is a clear property of the damage upon which a person is prepared to be bound, and an acceptance is access to, agreeing, or receiving the terms snaped.See more Basic Economic problem of Scarcity EssayThe requirements of an offer must(prenominal) be promissory, such as in Placer Development Ltd v Cth (1969) 121 CLR 353 whe re what the goernment had said was non a legally enforceable promise, but had appeared to be one. It must be sufficiently complete, and think to bequeath in a contract if accepted.The requirements of an acceptance to exist must be in the corresponding terms of the offer. It erectnot still be subject to a condition, such as where it was clear that Cameron had not think to be bound until a formal contract was prepared and signed, know v Cameron (1954) 91 CLR 353. An acceptance must be do composition the offer is still in existence. It must be made by a person whom the offer was addressed. If the offer is intended to be made to any person that learns of it then any such person can accept the offer on the verbalise terms.Carlill v Carbolic Smoke wind Co (1893) 1 QB 256, where Carlill had read an advertisement offering a pay back to anyone who caught influenza afterwards buying the companys smoke wrap. Carlill bought the ball and caught influenza, since the offer was made t o the world at large it is capable to be accepted by anyone who learns of it, including Carlill. An acceptance must be made in acceptable form. In the case of emails, it is considered to pack been received when it reaches an information system of rules designated by the person to whom the email is addressed via s 13 electronic Transactions (Victoria) Act 2000 and equivalent legislation in other say and territories.For the process of offer and acceptance to dissolvent in agreement, the terms of the offer must be accepted without suggesting changes. For example, in Olley v Marlborough Court Ltd (1949) 1 KB 532 Olley had her furs stolen in the hotel, and there was a notice in the inhabit notifying that the hotel was not held accountable for stolen goods. This notice was not part of the agreement as it was not in the initial contract and therefore the hotel was made liable. standard ThreeThe review of whether an agreement has been reached between both parties involves determining t he requirements of an offer and acceptance have been met.Firstly, for an offer to exist, it must be intended to result in a contract is accepted. The advertisement made by Games stumble Ltd is not viewed as an offer by the courts because advertisements are not intended to signal a readiness to be bound, but sooner an invitation communicate customers to make an offer to buy.Secondly, for the requirements of an acceptance to exist, it must be in the same terms of the offer. If the advertisement were to be seen as an offer, the terms agreed on would be $ molar concentration for the tickets and tickets to the finals in swimming, archery and gymnastics. Jon only authorized the payment of $1000 as the terms on the offer expressed. As the terms had changed after he had authorized payments, there were no tickets to the gymnastics, which made the offer invalid.Lastly, for the process of offer and acceptance to result in agreement, the terms of offer must be accepted without suggesting chan ges. The change from $1000 to $2000 plundered this requirement. An attempt to accept an offer on different terms should have been constructed as a rejection of the pilot burner offer and the making of a counter-offer.Step FourDue to not meeting the requirements of an offer through not being intended to result in a contract if accepted, and not meeting the requirements of an acceptance by not being in the same terms of the offer, there is no legal binding agreement between both parties and Jon is not make to pay $2000 for the plane tickets as there is no authorization for $2000, rather $1000.Question b)Step OneThe area of law relevant to this examination is the review of a table of contents of a contract enforced between dickens parties.Step TwoThere are particulars to a contract which structure its existence. This holds the importance of terms within the contract, the license of contract, debates that do not become part of contract, and terms of contract.Within a contract con sideration must be made to the creation of the contract. The terms of the contract coiffe the obligations of the parties. It is by analysing the terms that you can find out what has to be do to dis raze those obligations. For example in Cehave NV v Bremer Handelsgesellschaft mbH 1976 QB 44 1975 3 on the whole ER 739, the buyer Cehave did not want to accept the delivered goods because they were not in good condition although they were in satisfactory condition to perform their determination which was to be used as animal feed.Freedom of contract is the freedom of individuals to bargain among themselves the terms of their own contracts, without external interference. People can discuss effectively in their own interest and both parties negotiate from a position of equal strength. Limits included on freedom of contract are illegal undertakings not enforceable, such as anything more than minimal regulations and taxes whitethorn be seen as infringements. Policy considerations may li mit freedom of contract.There are certain statements that do not become part of the contract but are said in negotiations. This includes puffs, opinions and representations. Puffs are statements of exaggerated measure to excite buyers and pass on sales and are without any real or measurable substance. Opinions are statements of personal views or beliefs and should not be relied on as it may be incorrect. If a person misrepresents their true opinion, their statement is treated as a representation. Representations are statements often made to encourage the other party to enter the agreement, without intending that they be contractual promises. For example Oscar slicker Ltd v Williams 1957 1 All ER 325, the car dealer sued Williams for breach of contract due to the car age document being false. The courts mulish the document was a mere representation rather than a contractually binding promise.The terms of a contract describe the entire contents of a legally enforceable agreement. hurt are express when they have actually been declared or definitely stated. There are disagreements over whether particular terms have been included in the contract or not. For example Causer v Browne 1952 VLR 1 the statement on the order of business was not seen as contractual terms as it was only an identifying docket. A term may also be implied into a contract when that term was intended to be part of the contract without being expressly stated or referred to.It can only be implied if it is obvious that the parties had intended to include the term as part of their agreement. Implied terms must be likely and fair, be capable of clear, unambiguous expression and it must not match any express terms. In Codelfa Construction v State lead Authority of NSW (1982) 149 CLR 337 Codelfa tried to claim extra payment for the extra cost incurred due to stopping and starting work overnight. The courts rejected this as there was no such term implied that would see unforeseeable stoppage to work and compensation paid out.A breach of contract that causes loss gives fountain to a claim for damages. If sufficiently serious, a breach may explain a claim to damages plus a refusal to accept performance. To esteem the seriousness of a breach various terms are peremptory and some terms are described as conditions and the others warranties. Conditions are terms of fundamental importance to the agreement, whereas warranties are terms of lesser importance than conditions. In a breach of condition an injured party can abate contract and/or sue for the damages. Whilst in a breach of guaranty the injured party can sue for damages. In Associated Newspapers Ltd v Banks (1951) 83 CLR 322 Bancks, the cartoonist had the right to terminate his contract as the promise to publish Blancks pictures on the front page of the comic section was a condition term.Step ThreeIdentifying the content of the contract between Jon and Games hold up Pty Ltd shows that there are express terms that exist within the contract. For example, the two tickets for the value of one, and the tickets to the finals in the swimming, archery and gymnastics. These terms are contractual terms and must be carried out as specified by the agreement.The terms want throughout the contract are categorised as warranties, as they are not terms of fundamental importance. Such terms are the swimming tickets, where Jon had received mens event and not the womens. Also, the ticket price was doubled when charged, the initial contract was $1000 which is a warranty term. Terms that are conditional are the actual flight to the Commonwealth Games in India.Breaches of Warranty terms such as the swimming ticket and $2000 charge would be a breach of contract. In such a case, the quicken available for breaching warranties are to claim for damages only. This would include $1000 which Jon was overcharged.Step FourIn conclusion, through analysis of the contents of the contract a breach of warranty has arisen. The remedy of such can include a sue for damages incurred.