Draft a memo fully analysing and discussing why there is or is not a valid contract. ?
Then assume that there is a valid contract, and fully analyse and discuss the remedies that might be available under that contract.
a)Draft a memo fully analysing and discussing why there is or is not a valid contract. ?
A valid contract is established when all the ingredients that constitutes the validity of a contract, that is, intention, consideration, offer, capacity, acceptance, object, are present together at the same time [Small Business Development Corporation, 2012]. Amongst all, the first essential which ignites the formation of a contract is Offer. When a person shows his interests to another person to do something, such interest is termed as an offer and is established in Carlill v Carbolic Smoke Ball co. Ltd. [Australian Contract Law, 2012] Further, there are instances where the person to whom the offer is made instead of accepting the same makes a counter proposal. Such proposal is termed as counter –offer and it revokes the original offer. The person interested in counter – offer must accept the same to form a contract and is held in Hyde v Wrench.[Moles, 1998]
Thus, regardless whether there is an offer or counter-offer, a contract is formulated when the same is accepted and is called Acceptance and is held in Crown v Clark. Further, an acceptance must be univocal, that is, if any condition is attached to the acceptance it become counter-offer and is held in Tinn v Hoffman & Co. An acceptance is complete when it is communicated to the offeror, that is, it is bought within the knowledge of the offeror and is held in Entores v Miles Far East Corp. Also, if the acceptance is communicated to the agent of the offeror than such acceptance is complete when the agent is authorized to receive such acceptance and is held in Powell v Lee.[Insite Law, 2013]