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Contract Law Assignment Exploring Business Cases

2 Part A Issue: Analysis of manner in which contract of Kafee Shoppe made with Caitlyn formed. Rule: A contract legally enforces agreement made between two parties. The essential variants of a contract are legal capacity, offer and acceptance, consideration and objective to create legal relations[6]. Existence of any false statement, undue influence and unconscionable dealing can make contract illegal and void. Essential elements of contract Offer and acceptance : A contract is developed while an offer provided by an individual and same is accepted by other parties. An offer is deemed enforceable when it can be distinguished from the mere will of an individual, i.e. further negotiation of other details. It is possible to make offer to a class of people or the whole world, and it is not necessary to be made to a specific person. In legal terms, offer is a definite promise which bounds another person to comply with terms ofthe offer provided the terms are accepted by other parties[7]. In other words, it can be stated in this context of contract law assignment that acceptance must exist for a specific offer to bind other people. Legal capacity: Every individual is not free to enter in a valid contract. The specified persons, i.e. with mental impairment, bankrupts, prisoners, corporation (who act on behalf of the company), prisoners might have issues relating to consent and legal capacity. It has been provided in English Law that person with mental impairment or temporarily impaired cannot make valid contract unless the person can genuinely consent its making[8]. Consideration : Consideration refers to the value paid by an individual to another party with whom contract has been made against a promise. The price must be something of value even though not in money[9]. It can be right, the detriment of loss, interest or benefit for one party etc. Objective to create the legal relationship : The agreement between two parties can be enforceable only when both the parties have the intention to create a legal relationship. In case parties are entering a commercial arrangement which is accomplished at arm’s-length, it will be assumed that parties have intended to create legal relations to make a binding contract[10]. Analysis A contract must be indeed or carried by consideration. The description of consideration has been adequately provided through the decision of the case of Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd. It has been provided in the case of contract law assignment that it is not necessary consideration should be in money form, and promise of action or act or forbearance can be given as consideration for enforceability of the contract. In existing scenario of case study,the customer has accepted the offer and responded on the same through selecting the menu on the virtual board. Further payment has been made following the menu. It means that offer, as well as consent and consideration, is available in the contract of Kafee Shoppe made with Caitlyn formed. For instance, in the case of McDonald v Attorney General considered in this section of contract law assignment, judge Holland specifically provided that Wheat Board did not have intentions to enter in a contractual relationship to buy wheat from Mr McDonald until it was delivered[11]. The case specified in the contract law assignment represents the situation of estoppels. However, in the present case of a contract among Kafee Shoppe made with Caitlyn, adequate order was made and adequately accepted by Kafee Shoppe through a virtual machine. Thus, it would be appropriate to state that essential element of objective to be legally bound does exist in the present case. Conclusion Through the above analysis on contract law assignment, it can be concluded that as all essentials of a valid contract are available in case of Kafee Shoppe made with Caitlyn. Thus it would be appropriate to state that contract formed between Kafee Shoppe and Caitlyn is valid and enforceable. Part B Issue: Finding a foreign object in food: The issue addressed in this question of contract law assignment is the liability of a cafe owner towards its consumer who was served tofu which had a piece of metal in it. Rule: The Act of Negligence: As per schedule 2 of the Competition and Consumer Act 2010 (Cth)- the ACL is the main law in Australia which regulates consumer protection and obligation of manufacturers, contractor and distributors of consumer products relating to loss or damages caused due to products[12]. The rule provided in Australia Consumer Act applies to this case study of contract law assignment is that if there is a problem with the foods and beverages the customer holds each right to ask for damage compensation if the supplier had foreseen the problem? Consumer protection law specifies provision regarding protection to assure that products purchased by the customer are safe. Even consumer rights provided in Australian consumer protection law specifies that it can complain and take legal action against the third party in case safe products are not provided to the customer[13]. Analysis: This section of contract law assignment illustrates that finding a foreign object in food which makes it unfit for consumption define the act of negligence on the part of the restaurant. All the restaurants and cafes are governed by Federal and State and Territory legislation[14].These organisations put certain obligations on the owners to provide food which is suitable to eat. At the Federal level, this case will be guided by the organisations which oversee the businesses related to food that is Food Standards Australia New Zealand Act 1991, Food Standards Australia New Zealand Regulations 1994. Catalyn wished for filing complaint against the cafe for incorrect food handling. However, the readings considered in this section of contract law assignment also signifies that she has to establish that she suffered some type of harm as a result of the cafe’s negligence. Just by finding a foreign object, does not make her in a position to sue the restaurant. The Kafee in which Catlyn is a regular customer should have taken necessary steps to compensate her. They could have made the order free or brought her a fresh order. However, the cafe has made an explicit term in their ticket to not pay for any damages that occur because of their food and beverages. It means there is an explicit denial of the cafe for any damages[15]. Possible damages: The possible damages that the metal piece would have caused to Catalyn might have broken her teeth, or it would have resulted in choking and breaking a tooth. At the same time, eating can not only be painful but create embarrassment on the part of the consumer. Accidental choking may have caused unintentional death. If the restaurant is found guilty that the choking occurs because of the food they served, this may cause legal trouble for the cafe[16]. The cafe might be responsible for violating health regulations. Case Law Donoghue v Stevenson (1932) – also known as the Snail in my bottle case The above case specified in this contract law assignment is landmark judgement related to the act of negligence in which Mary Donoghue discovers remains of a disintegrating snail in a ginger beer bottle[17]. After which she dealt a rigorous problem of gastritis. She took legal action against the manufacturer of the drink, specifying that the manufacturer had responsibility to ensure that no snails enter the bottles and assess bottle before packing[18]. The court provided that manufacturer had not complied with his duties to his customers. This case paves the manner for claiming negligence acts in England and Australia. Conclusion From the overall evaluation done in this contract law assignment, it can be concluded that the court states the cafe owners owe a duty of care towards their customers. By failing in providing safe food, they are risking the life of their consumers, and it is a breach of duty. For this purpose, the court might consider the probability of the metal piece likely to risk the health. Metal can be severe if swallowed. However, Catalyn was lucky enough to identify and intimate this to the manager. Since no injury occurred, there will be no compensations made. The court might consider the act of negligence on the part of the cafe. Bibliography Allen and Overy. BASIC PRINCIPLES OF ENGLISH CONTRACT LAW. Contract law assignment (2017). a4id org. <http://www.a4id.org/wp-content/uploads/2016/10/A4ID-english-contract-law-at-a-glance.pdf>. Ash, David. “Implied terms of fact: Counsel’s last resort.” Bar News: The Journal of the NSW Bar Association Autumn 2018 (2018): 66. Australian Consumer Law-guide. (2016).Consumer law.gov.au. <https://consumerlaw.gov.au/sites/consumer/files/2016/05/0553FT_ACL-guides_PSafety_web.pdf> Bruce, Alex. “Present & Future Jurisprudence of Consumer Protection and Food Law in Australia.” International Food Law and Policy. Springer, Cham, 2016. 971-1000. Chaar, Maha. “Construction of contracts: The ambiguity gateway and the current state of the law.” UW Austl. L. Rev. 44 (2019): 65. Eldridge, John Anthony. Codifying Contract Law in Australia: Issues and Obstacles. Diss. 2019. Eldridge, John. “‘Surrounding circumstances’ in contractual interpretation: Where are we now?.” Commercial Law Quarterly 32.3 (2018): 3-11. Goldberger, Jeffrey. “Contract law in the cases: 2017 in the review.” Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia 32.1 (2018): 32. Goldberger, Jeffrey. “Contract law in the cases: 2017 in the review.” Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia 32.1 (2018): 32. Goldberger, Jeffrey. “Implied contracts and implied terms-part 2 of 3.” Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia 33.3 (2019): 12. Goudkamp, J. L. M., J. Edelman, and Simone Degeling. Contract law assignment “Contemporary problems in the law of contract.” Australian Bar Review (2016). Howells, Geraint, and Iain Ramsay, eds. Handbook of research on international consumer law. Edward Elgar Publishing, 2018. Khoury, El, Chantal.Bucket Intell-O-gence: Can You Sue For Finding A Foreign Object In Your Food?. (21 June 2017). bucketorange.com. <http://bucketorange.com.au/sue-foreign-object-smashed-avo/> Pearson, Gail. “Enforcement and Effectiveness of Consumer Law in Australia.” Enforcement and Effectiveness of Consumer Law. Springer, Cham, 2018. 75-97. Rajapakse, Pelma Jacinth. “Contamination of food and drinks: Product liability in Australia.” Deakin L. Rev. 21 (2016): 45. Rights of Consumer. (2019).accc.gov.au. <https://www.accc.gov.au/consumers/complaints-problems/make-a-consumer-complaint> Robertson, Andrew. “The foundations of implied terms: logic, efficacy and purpose.” Contract in Commercial Law (Sydney, LawBook Co, 2016) (2016). Siliquini-Cinelli, Luca, and Andrew Hutchison. More Constitutional Dimensions of Contract Law. Contract law assignment Springer International Publishing, 2019. [1]EdelmanJ. L. M., J. Goudkamp and DegelingSimone. "Contemporary problems in the law of contract." Australian Bar Review (2016). [2]JohnEldridge. "'Surrounding circumstances' in contractual interpretation: Where are we now?." Commercial Law Quarterly 32.3 (2018). [3]MahaChaar. "Construction of contracts: The ambiguity gateway and the current state of the law." UW Austl. L. Rev. 44 (2019). [4]Jeffrey Goldberger. "Contract law in the cases: 2017 in review." Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia 32.1 (2018) [5]JeffreyGoldberger. "Implied contracts and implied terms-part 2 of 3." Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia 33.3 (2019). [6]David Ash. "Implied terms of fact: Counsel's last resort." Bar News: The Journal of the NSW Bar Association Autumn 2018 (2018). [7]John AnthonyEldridge,. Codifying Contract Law in Australia: Issues and Obstacles. Diss. 2019. [8]JeffreyGoldberger. "Contract law in the cases: 2017 in review." Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia 32.1 (2018). [9]AndrewRobertson. "The foundations of implied terms: logic, efficacy and purpose." Contract in Commercial Law (Sydney, LawBook Co, 2016) (2016). [10]LucaSiliquini-Cinelli and HutchisonAndrew. More Constitutional Dimensions of Contract Law. Springer International Publishing, 2019. [11]Australian Consumer Law-guide. (2016). Consumer law.gov.au .<https://consumerlaw.gov.au/sites/consumer/files/2016/05/0553FT_ACL-guides_PSafety_web.pdf> [12]Allen and Overy. BASIC PRINCIPLES OF ENGLISH CONTRACT LAW .(2017). a4id org. <http://www.a4id.org/wp-content/uploads/2016/10/A4ID-english-contract-law-at-a-glance.pdf [13]Rights of Consumer. (2019).accc.gov.au. <https://www.accc.gov.au/consumers/complaints-problems/make-a-consumer-complaint> [14]JacinthPelmaRajapakse,. "Contamination of food and drinks: Product liability in Australia." Deakin L. Rev. 21 (2016): 45. [15]Geraint Howells, and RamsayIain, Handbook of research on international consumer law. Edward Elgar Publishing, 2018. [16]Alex Bruce. "Present & Future Jurisprudence of Consumer Protection and Food Law in Australia." International Food Law and Policy. Springer, Cham, 2016. [17]Chantal El Khoury .Bucket Intell-O-gence: Can You Sue For Finding A Foreign Object In Your Food?. (21 June 2017). bucketorange.com. <http://bucketorange.com.au/sue-foreign-object-smashed-avo/> [18]GailPearson,. "Enforcement and Effectiveness of Consumer Law in Australia." Enforcement and Effectiveness of Consumer Law. Springer, Cham, 2018.


Subject Name: Business Law

Level: Undergraduate


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