Professional Documents
Culture Documents
What follows is a guide to the structure that you need to develop when
answering problem questions. It demonstrates an approach to answering
problem questions and has been designed to help you develop the
analytical skills you will require. It is not a sample answer and is not in
essay format – the format in which you will be required to present your
answers.
You will note that each answer follows a different structure, dictated by
the issues raised. Remember to structure your answer to address all the
issues raised in a question.
The answer guide is just that. It is intended to show you how to approach
the question rather than teach you the law of contract. Cases are referred
to briefly (without the full citation) to show you how much of a case
needs to be included. You do not need to repeat the facts or the judicial
discussion unless particularly relevant. You need to apply the principles
found in case and statute law to the facts of the question.
Question 1.
Adam wishes to throw a surprise 40th birthday party for his mother.
Note that Adam’s mother is turning 40, a guide to the possible age of
Adam.
He has saved some money from several small jobs but needs to borrow
about $3,000 from his kind Uncle Bert.
Adam is borrowing the money- possible loan contract.
Bert is Adam’s uncle – family relationship. He has worked several small
jobs – another guide to his age.
who is happy to help out and so lends Adam the needed money on the
understanding
What does this mean?
that Adam can pay off the loan when he starts his new after school job at
the supermarket.
It is intended that the loan be repaid
Adam is still at school – how old is Adam?
Adam contacts caterers, decides on the menu, and pays a deposit. He then
spends all of Uncle Bert’s money on the party. He can’t repay Uncle Bert
as he decides not to take the supermarket job but to finish school and
study hard to get the traineeship he wants.
Is finishing school in Adam’s interest, for his benefit?
What facts, drawn from the question, will you use to determine the
factual question of whether or not Adam is a minor?
What facts will help you answer this? Or, how does this broad legal
issue apply to the particular facts of the question before you?
Consider Adam’s school and work experience and
understanding of his obligation.
If no, do not stop here, but consider the rest of the issues raised.
2 Offer
Was the offer made to a specific person (Carlill v Carbolic Smoke Ball)
Offer made to Adam
3 Acceptance
Is it unequivocal?
Yes, there is nothing left to be negotiated.
Was acceptance complete? (Did it contain all the essential terms of the
offer?) (George v Roach)
Discussion at barbeque
Is there acceptance, If no, do not stop here, but consider the rest of
the issues raised.
4 Consideration
Is there consideration, if no, do not stop here, but consider the rest of
the issues raised.
Question 2
a) Derek always buys his fruit for his juice stand in the shopping centre
from Gary the market gardener.
c) Gary faxed a price list to Derek stating that carrots were $20 per for
that Monday only, and he only had two cases left but he expected
more to be available during the week.
d) Derek faxed back as soon as he received Gary’s fax and said that he
wanted 2 cases to be delivered on Wednesday and another two on
Friday at the same price?
What is the nature of this fax? Has the information in the fax been
communicated to Gary? When?
e) Gary was out of the office and did not receive the fax until Tuesday
morning.
Advise Derek.
ISSUE:
IS THERE A BINDING CONTRACT BETWEEN GARY AND
DEREK WHICH DEREK CAN ENFORCE?
That is:
Has the course of communication between the parties resulted in a
contract?
Is there an offer?
Has there been acceptance?
Note: Use of the word “offer” does not by itself convert an invitation
to treat into an offer.
APPLICATION:
Was there:
a definite undertaking – the price and delivery are clear.
to a specific person – to Gary
which has been communicated – by fax, but it has not yet been
read?
APPLICATION:
Is Gary aware of the fax from Derek in (d) above?
Is the fax sent in reliance on the offer made by Gary?
Is it accepting all the terms of the offer?
Is it certain and complete?
Sufficient?
Does it move from the promise?
If Consideration, was there intention to create legal relations?