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Dreamworld Airlines Case

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The lack of judgment that took place during Dreamworld Airlines’ method of posting its ticket prices to the site has gotten DWA into a contract dispute with its customers. It is clear that someone made the mistake of omitting another zero at the end of the ticket price of $25.00. The customers have a right to feel cheated by DWA, but do they have a legal right to be upset? They feel cheated because DWA left them with two options: pay the full $250.00 ticket or receive a refund for their $25.00 ticket. DWA’s customers do have a legal right to be upset because DWA breached the contract with its customers. For a contract to be a contract, “a set of promises must be based on a voluntary agreement, which is made up of an offer and an acceptance of that offer. In …show more content…

So far there has been an agreement, $25.00 for a ticket, between two parties and the agreement was voluntary. The next step in the process is consideration. There was “legal value, bargained for and given in exchange for an act or service” (Mallard). The promise of a round-trip ticket should be enforced because the customers gave up a legal value of $25.00. Both DWA and its customers received something in this deal. By definition there was consideration between the two parties. After consideration, both parties must have the capacity to contract with one another. A contract is defined as “a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party” (Mallor, p. 321). DWA promised a $25.00 ticket to 547 customers and they must follow through on that promise. The inability to follow through on the ticket prices of $25.00 is a breach of contract and the customers have a legal right to hold DWA to the $25.00 ticket

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