Case on Privity of Contract

3940 Words Mar 28th, 2013 16 Pages
Capacity and Privity of Contract

LGST101 Business Law Professor George Shenoy

Group Members: Ue Mu En, Esther Goh Yue Lin, Sylvia Fong Li Chu Sabina Sun Chao Ng Shi Ya

Content Page 1. Case Summary 2. Can Brad sue Jennifer? 2.1 2.2 2.3 2.4 Validity of Contract Breach of Contract Brad cannot sue Jennifer Brad can sue Jennifer

3. Can Angelina sue Jennifer? 3.1 3.2 Angelina cannot sue Jennifer Angelina can sue Jennifer 3.2.1 3.2.2 3.2.3 Contract (Rights of Third Parties) Act Tort of Negligence Rule of Agency

4. Can Brad sue Jennifer on 4.1 Action of Promisee on behalf of Third Party (Albazero Exception)

5. Conclusion


1. C ase Summary This case involves 3
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There is an indication of willingness to be bound as seen from the drafting and signing of contract. Jennifer indeed does have the power to bind Brad upon acceptance of the offer as Brad is liable to be sued by Jennifer for breach of contract if he refuses to pay after Jennifer has installed the Superspike.


What then, defines acceptance in a legal sense? Acceptance must be final and unqualified, and communicated to the offeror. Brad and Jennifer both sign the contract in the presence of both parties, and agree to no other terms apart from those stated in the contract. Therefore, our group recognizes that Brad is the offeror and Jennifer is the offeree of the contract. Brad calls Jennifer regarding the fixture of the 40cm Superspike end-pin on the cello and offers to pay her s offer of $2,000 and agrees to the installation. Secondly, consideration must be present. Consideration is defined as something which has value in the eyes of the law and is given in exchange of a promise. Consideration can be in the form of a benefit or detriment requested for by the promisor, and must move from the promisee to the promisor. Applying the

form of a benefit conferred upon Brad (installation works performed on the cello) or a detriment suffered

consideration by conferring upon Jennifer a benefit ($2,000 as payment) or by suffering a detriment (having to part with his money). Thirdly, there must be an intention to

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