Contract and Agreement Essay

Submitted By zdyzdyzdy
Words: 2384
Pages: 10
Open Document
EXEMPLAR Four Step Process
Nicole and Joel, who just had a baby, decided to take a break from their hectic rock star life style and drive around Queensland once Joel had finished singing with his band. While they were at the Gold Coast, Nicole and Joel stayed at a great house by the beach owned by their friend Sophie. They all agreed that Nicole, Joel and the baby would be at the beach house for four weeks and would pay Sophie $1000 a week for allowing them to stay in her house. Nicole and Joel end up having a terrible time, their baby does not sleep at all and they do not like staying so close to the beach. It is hot and sandy and there is lots of noise from all the people on the beach. After two weeks they pack up and go to Sydney. They don’t pay Sophie any money at all for rent because the holiday was so disappointing. Sophie however, really wants Nicole and Joel to pay her the rent as they had agreed. Sophie had counted on the money to pay for her recent cosmetic surgery. She is hurt by their failure to pay and has come to you to ask whether she can make them pay her the rent that they owe her. Question: Using the four step process discuss whether there is an intention to be legally bound and a contract formed between the parties. Can Sophie enforce the agreement between her and Nicole and Joel?

STEP 1: Identify the principles or issue of law

1 2
1 of 5
© 2013 Curtin Business School Updated semester 2, 2013

Comment [CD1]: Note the brevity of this statement. You don’t need to repeat the question or make general statements here. Comment [CD2]: You may not need to refer to every single case that is listed for each rule of law in the lecture outlines and First Principles of Business Law text book. Please, do not refer to cases from outside of the course. Comment [CD3]: If you are going to have an introductory type paragraph KEEP IT BRIEF. Look at the marking rubric. The marks in Step 2 are awarded based on the quality of your explanation of the law with reference to authority. Sometimes students find it hard to begin writing an answer without a general overview statement, but too often they spend much too long on this type of thing. A simple statement like this does enhance the flow of your answer, provided you have left enough time and words for the important stuff. It’s good to include a definition here of a relevant topic (i.e. offer/acceptance or consideration).

The principle (or issue) of law is that for a valid contract to be formed there must be an intention to be legally bound by both parties.

STEP 2: Explain the rule(s) of law relevant to the principle/area/issue of law identified in step one with reference to authority. There are three main requirements for the formation of a legally enforceable contract, intention, agreement and consideration. The element that requires discussion here is the existence of an intention by the parties to enter into a legally binding agreement.

An agreement is only legally enforceable if the parties intended at the time the agreement is made to be legally bound. Intention is to be judged objectively. The court asks whether, in the circumstances, a reasonable person would regard the agreement as intended to be binding. The test is an objective one however the courts rely on presumptions to assist with ascertaining whether the parties intended to be legally bound by the agreement. Where arrangements are made between family members or friends the court presumes that the parties to these agreements do not intend to be legally bound. “A person who wants to treat an agreement with a close family relation as legally binding will have to prove additional circumstances from which an intention to be legally bound can be inferred” (Lambiris and Griffin 2013 p.68) In the case of Balfour v Balfour [1919] 2 KB 571 during their marriage a husband and wife came to an arrangement whereby the husband agreed to pay his wife an amount each month for her maintenance. After the parties
Show More

Related Documents: Contract and Agreement Essay

Contracts: Contract and Agreement Essay examples

Outline 1. Recitals. 2. Employment. 3. Duties. 4. Term. 5. Compensation. Employer Information Name Address Phone Number Fax Number Email Performer Information Stage or Performance Name Number of Performers Name of First Performer Who has contract signing authority? Performer Contact Information Address Phone Number Fax Number Email Venue Information Venue Name Address Phone Number Performance Performance Description Performance Team Performance Date Setup Date Set Up Time Number of Sets on…

Words 2975 - Pages 12

Contract: Gentlemen ' s Agreement and Product Trial Essay

Contract Product Trial Agreement This Product Trial Agreement in entered into as of the 30th day of November 2014 as effective date, by Motherhood Inc. (“Motherhood”), located at 2300 Riverside Drive, Jupiter, FL 33458, and Devil Kids Daycare Center (“DKDC”) located at 128 Everglades Parkway, Miami, FL 33786. Agreement Product Trial Description: DKDC agrees to undertake and complete the trial in compliance with all applicable laws, rules and regulations relating to the trial, including the rules…

Words 504 - Pages 3

Summary: Toymaker Speaks With Forked Tongue

an exclusive negotiation rights contract with BTT detailing strict rules that everything must be in writing or there is no contract. The contract period was to last for 90 days, and a few days prior to ending the two parties met and verbally talked out the details of what was to be a contract. The next day an e-mail was sent detailing the items discussed the prior day. Chou believed that the e-mail was to replace the suggestion that he draft a contract. No contract had been drafted or signed by either…

Words 1413 - Pages 6

LAW421 Week4 BigTimeToyMaker Essay

Robert Shulman Introduction A contract is an agreement between two parties that is enforceable in court. In order to have a valid contract, there are several criteria that must be met that will be explained throughout this analysis. A verbal or written agreement may result in a binding contract if the required contract criteria are met (Melvin, 2011). Contracts are put in place to protect both parties on either end of the agreement. A Big Time Toymaker (BTT) was interested in a…

Words 994 - Pages 4

Essay on Classification of Contracts

Nature and Classes of Contracts Deepinder Grewal July 17th, 2015 MAN 224  CollegeAmerica Fort Collins Dr. George Ackerman Nature and Classes of Contracts The provision that the law allows if a party to the contract fails or refuses to perform it is the breach of contract. A breach of contract is defined as failing of one or more parties to implement the obligations assumed under the contract (Ashcoft & Ashcoft, 2010). It can allow the other party to take an action against them…

Words 866 - Pages 4

Essay on Contract and Flooring Specialists

Business Law 12 March 2015 Contracts Formation and Enforcement Case (1) A contract is a formal agreement between two or more people, or parties that are guided by legal laws and the constituents must attend to their obligations in line with the agreement on the contract. At least all contracts should focus on attaining the contract’s goals and should be specific in nature. Contracts form a critical part of many businesses, and it is fundamental that parties to a contract be conversant with the terms…

Words 1141 - Pages 5

Research on Divorce Essay

Carl Simpson FCWR-151-W04 The Research Paper April 25, 2012 The Prenuptial Agreement The prenuptial agreement as defined by the Free Online Law Dictionary is, “a written contract between two people who are about to marry, setting out the terms of possession of assets, treatment of future earnings, control of the property of each, and potential division if the marriage is later dissolved”. We find it necessary to investigate it because; a lot of unmarried or even married people require clarity…

Words 1457 - Pages 6

Big Time Toymaker

2015 Andrew McAdams Big Time Toymaker Assuming that BTT and Chou had a contract, and BTT breached the contract by not distributing the game, the remedies that may or may not be applied will be discussed. There are several questions to be answered. One is at what point, if ever, did the parties have a contract? Another question is what facts may weigh in favor of or against Chou in terms of the parties’ objective intent of contract? The third question is does the fact that the parties were communicating…

Words 855 - Pages 4

Big Time Toymaker

into an agreement with Chou, an independent inventor of a new strategy game he name Strat, to distribute this new game. However, over more than a 90-day period, BTT reneged on the agreement and was in breach of contract stating BTT were no longer interested in distributing Chou's new strategy game. This paper examines whether BTT and Chou, in fact, have a contract, and what remedies may apply, through answering the following six questions. At what point, if ever, did the parties have a contract?…

Words 1258 - Pages 6

Clarkson V. Case Study

Whereas e-contracts were once relatively unique, click-on agreements are now quite common. Software downloads typically present end users with lengthy legal terms and require them to click “I accept” or “I do not accept” before completing the download and using the software. Clicking “I do not accept” would typically preclude the end user from installing the program. It is notable that written and verbal contracts are enforceable if they evidence four core requirements: agreement, consideration…

Words 652 - Pages 3