Taking a Look at Contractual Law

1759 Words Jan 31st, 2018 7 Pages

Tom requires advice to whether or not he can take legal action against Vicky for breach of contract. He claims that a binding contract exists between both parties, and Vicky is estopped from dishonouring her promise.

In order to provide Tom with a legal recommendation, the key facts must be identified and linked with relevant legal issues. The law will be applied to the facts to determine the existence of a contract, and then the analysis of the contractual terms will help conclude to whether or not Tom has a right to sue under common law of contract.

2. Formation of Contract

To advise Tom on his contractual rights, it must be determined if a contract exists. The essential elements of a contract are intention, agreement and consideration. Other vital elements are legal capacity, genuine consent and legality of purpose.

Evidence of intention by both parties to make a contract is required for contract law. Since the situation between Tom and Vicky is not a family or domestic arrangement, it is presumed that this is a commercial agreement and they both possess intention to create legal relations.

Agreement incorporates both the offer and acceptance. An offer is a proposition which will become an agreement if it is accepted and a conditional offer will not result in a contract being made unless a term has been fulfilled. Macquarie Generation v CNA Resources determined that offers subject to conditions were incapable of acceptance.


More about Taking a Look at Contractual Law