Contract Law Case Study Essay

1980 Words8 Pages
Contract Law Case Study Both the parties in the question have come to a problematic situation which is complicated to resolve. Friend's of the Forest (Friends), represented by Christabel, is involved in a commercial trade with Paper Supplies Pty Ltd (Paper) which is represented by Dee. A contract needs four essential elements to exist. In the situation, it is obvious that the four elements are satisfied. As the details are not fully provided, it is arguable as to when the contract was formed which will affect the legal rights and obligations of both parties. The first main issues to be discussed regarding the contract…show more content…
In the situation, regardless of whether Christabel has read the terms of the document, the signed agreement has been signed by her and therefore she is bound to it. A possible exception is that Christabel can argue that the contract was already formed after the negotiations and it was before the document containing the clause was presented. To prove this, Christabel has to prove that it was a fully oral contract which was formed right after the negotiations where the four essential elements of a contract already exist. Following that, Christabel has to argue that the document did not appear to be contractual. In D J Hill and Co Pty Ltd v Walter H Wright Pty Ltd, the negotiations were conducted entirely by telephone and when the goods were delivered, Hill's employee signed a form which contained an exemption clause. The document signed was regarded as a delivery docket and that when they signed it; all they were doing was acknowledging delivery. Christabel can argue that she was merely acknowledging delivery. Apart form that, issues in the contract involves both explicit and implicit terms as well. In the negotiation stage, Christabel explains the importance the high-quality recycled paper which is not treated with chemicals of the product to Dee. As Friends is an environmental organisation, it is essential that the products they sell are
Open Document