Answer all 4 questions.1.Margaret owned an antique store that specialised in rare porcelain dolls. When sheopened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999she...

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Answer all 4 questions.1.Margaret owned an antique store that specialised in rare porcelain dolls. When sheopened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999she started to advertise on the Internet and by 2006 the business had grown to the pointwhere she needed help to keep the business going. After a family discussion one night atthe kitchen table in July 2006, it was agreed that Margaret would probably keep thebusiness going for another couple of years and then retire. Emily, her youngest daughterand aged 16, would work in the shop as long as was needed and in return, she wouldreceive any unsold dolls. When Margaret retired at the end of 2009, she decided that shewould give the unsold stock to charity and they could auction it and keep the proceeds.Advise Emily.2.Richard, an impoverished university student, and his millionaire father enter into anarrangement where Richard agrees that he will keep the front-and backyards of thefamily property mowed, and he will ‘do a bit’ to keep the gardens looking tidy. In return,his father agrees to pay him a weekly allowance of $200. His father had previously used agarden contractor to do the job and paid him $350. They live on a one-hectare property,and the mowing alone takes half a day a week. After four weeks, Richard’s father tells himthat he can’t afford to pay $200 a week. He says that Richard should be doing the workfor nothing, as it is the responsibility of the whole family to look after the property;besides, he says, Richard is getting free board and lodging. Advise Richard.3.Jenny received a circular from Beauty and the Beast Hair Salon advertising massages andmanicures for $10. Realising that this was an exceptionally good deal, but not surprisedbecause she knew that they had only just opened and were running a number of goodopening specials, she rang and made a booking. When Jenny arrived at the salon she wastold that there had been a mistake on the circular and it should have said $100. Themanager of the salon explained that this was still a good price because normally amassage and manicure would have cost $150. Jenny was furious, as it had taken her 30minutes to get to the shop by car and if she had known it would cost $100, she wouldnever have made the booking. Advise Jenny. Would your advice have been any different ifJenny had the massage and manicure before being told that the cost was $100? Wouldshe have to pay the full price?4.Bruce, while he was so drunk that he didn’t know what he was doing, bid successfully atan auction for the purchase of a house. It was clear to the auctioneer that Bruce didn’tknow what he was doing. However, after Bruce sobered up he confirmed the contractwith the auctioneer. He then subsequently refused to complete the contract. Is Brucebound?
Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
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Scenario 1
ISSUE
In the present matter what must be understood prima facie is that the given situation conveys
the all important essential of a contract i.e. an agreement. An agreement has been reached to
y both parties as can be understood from the facts of the question posed.
RULE
It is an actionable common law principle that an agreement that is enforceable by law is a
contract i.e. there are no circumstances under which the agreement or contract may be void or
voidable (ex- no contract for an illegal object, consideration, no unlawful act is the outcome
of the proposed/competed contract or agreement). An agreement includes a meeting of the
minds of the parties – or consensus - between two parties (Margaret and Emily in this case).
The law of contract will enforce obligations where there has been an agreement between the
two parties.
1
There can be no contract without an agreement.
2
Agreement consists of an offer
and an acceptance.
LAW
According to Justice Cooke, the acid test of the conclusiveness of a contract would be the the
easonableness of the terms of the agreement, viewed objectively from both ends.
3
In
accordance with the facts of the circumstance it can be reasonably deciphered that there was a
valid agreement between Margaret and Emily. After the family discussion at dinner, it was
agreed that after a couple of years Margaret would retire and Emily would take over and
would also get to keep the unsold dolls. Thus an essential of a contract can be viewed to be as
complete in the matter. The agreement will held to be complete as there was a completion of
acceptance, from the acceptor (Emily) to the offeror (Margaret).
Of the six essential elements of a contract, i.e. agreement, consideration, capacity, intention,
formalities and certainty, consideration stands out as that element that when accompanied by
an agreement would constitute a complete contract. Consideration maybe by way of money,
property or even a promise to undertake or not to undertake the proposed action. In the given

1
Gibson vs. Manchester City Council
2
Gibson vs. Manchester City Council
3
Meates vs. Attorney General
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instance, there was an action constituting a promise from Emily’s side by way of her
eventually taking over the business after Margaret retired.
CONCLUSION
Emily thus does have a legal right to take up action against such a
each of contract. It was
decided that by both parties that Emily would get the dolls (unsold) as well as the business.
Thus the two proposed remedies available to Emily are; a) that she may sue for specific
performance as there has already been part performance of the contract, or b) she also has the
ight to go to court and apply for an injunction against the auction of the unsold dolls given to
charity.
REFERENCE:
Australian Contract Law | Julie Clarke. 2012. Australian Contract Law | Julie Clarke.
[ONLINE] Available at: http:
www.australiancontractlaw.com/law.html. [Accessed 24 May
2012].
Contract and Consumer Law. 2012. Contract and Consumer Law. [ONLINE] Available at:
http:
austcontractlaw.wordpress.com/. [Accessed 24 May 2012].
Review of Australian contract law - Discussion Paper. 2012. Review of Australian contract
law - Discussion Paper. [ONLINE] Available at: http:
www.hwlebsworth.com.au/latest-
news-a-publications/publications/government/australian-government/item/618-review-of-
australian-contract-law-discussion-paper.html. [Accessed 24 May 2012].
http:
www.australiancontractlaw.com/law.html
http:
austcontractlaw.wordpress.com
http:
www.hwlebsworth.com.au/latest-news-a-publications/publications/government/australian-government/item/618-review-of-australian-contract-law-discussion-paper.html
http:
www.hwlebsworth.com.au/latest-news-a-publications/publications/government/australian-government/item/618-review-of-australian-contract-law-discussion-paper.html
http:
www.hwlebsworth.com.au/latest-news-a-publications/publications/government/australian-government/item/618-review-of-australian-contract-law-discussion-paper.html

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SCENARIO 2
ISSUE
Richard may definitely be advised to sue for a
each of contract. A claim for
each of
contract would arise of it can be shown that;
4
a) A valid contract was made between the
parties, b) the party has
eached the contract as properly construed, c)...
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