Summary : ' Angus Crouch '

1704 Words Apr 24th, 2016 7 Pages
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Angus Crouch – a1686531

Section I

The contract Gabe entered with Crane Entertainment on 5th October, is a legitimate contract as it was a legal document prepared and agreed upon prior to the commencing of work for the new arcade game. Although ‘tipsy’ when Crane representatives arrived, it can be presumed they did not know or realise Gabe had been drinking.

In much the same situation, Blomley v Ryan (1956) 99 CLR 362 addresses that one cannot escape the contract’s obligation under ‘mere’ drunkenness unless they were –to the knowledge of the other party- ‘seriously affected by drink’. Having agreed to the contract over the telephone prior to the drinks, Gabe was already aware of many major points of the contract. Already understanding the contract, Gabe’s verbal agreement and then his written contract with Crane shows his competence. If Gabe claims to be intoxicated that he is impaired, the contract should be deemed illegitimate as he has no capacity to sign the contract with Crane as in Gibbons v Wright (1954) 91 CLR 423.

The bilateral agreement between both Crane and Gabe meant that in accordance of keeping deadlines and producing the game, Gabe would be paid $750,000 to cover the costs. There is no effort stated regarding bargaining for a larger amount even though he knew the figure was not going to be enough. Furthermore, Gabe would not be able to argue that $750,000 was not a satisfactory amount as adequacy of consideration is not considered in court as…
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