commercial law assignment

Jonah Whitelum a1768623 Michelle did not feel comfortable with the offer, she could have declined but now there is a legally binding contract. Q2.) i) Did Suzanne enter into a valid contract with the Adelaide Airport car park? The issue of this case is if Suzanne entered into a valid contract with the Adelaide Airport cark park when she went to welcome her daughter. There are four elements to a contract, these being offer and acceptance, consideration, intention to create legal relations, certainty and completeness of terms. The offer is a proposal by one party to enter a legally binding contract on strict terms with another, giving the recipient an opportunity to choose to either accept or reject the offer. 7 Acceptance is a willingness to take exactly what is offered with and understanding that they may need to pay the “price” required. 8 However the parting that is accepting must be conscious of them accepting. 9 In this case, Suzanne drove into the Adelaide Airport car park which on the sign of the entrance it says “the car park will not be liable for any loss or damages to any vehicle”. 10 The sign being at the entrance of the car park can be considered to be the “offer” as the sign gave Suzanne the option to either accept or reject the offer. It could be considered that Suzanne accepted the offer as she continued to drive into the car park, thus it could be said that she is willing to “pay the price” if required. However, Suzanne may not have seen the sign or paid much notice thus she isn’t conscious as to what she is accepting, this might not have been clear to Suzanne thus there is no contract. Consideration serves to distinguish bargains from gifts and ensures that something of value is given by each party, however mere promises are not legally enforceable. 11 There are two elements to the consideration aspect, benefit/detriment and bargain. In the Currie v Misa case (1875) it stated, “A valuable consideration, in the sense of the law, may consist in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, responsibility, given, suffered, or undertaken by the other”, this relating to the consideration aspect. 12 13 In this case there was a significant benefit accruing to the Airport car park as they stole Suzanne’s and are “not liable”. Intention to create legal relations is the third aspect of creating a valid contract, this is when the parties must have intended their agreement to be legally enforceable in order for it to be so. 14 Contract formation has three basic rules, these being it must be sufficiently complete, it must also be sufficiently clear on its terms, the courts will endeavour to attribute meaning to the language used by the parties unless it is impossible to do so. 15 In this case Suzanne and the Adelaide Airport did not sufficiently complete a contract as they didn’t agree on any terms even though that the sign was clear in what it meant. This means that Suzanne and the Airport did not have a valid contract. 7 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April 8 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April 9 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April 10 Assignment sheet 11 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April 12 https://www.lawteacher.net/cases/currie-v-misa.php 13 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April 14 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April 15 Commercial Law Lecture Slides, Contracts (Formation). Accessed on the 19 th , April