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Contract Law

The given situation consists of contractual issues and Australia does not follow a separate codified contractual law, but principles that have been established by the common law system.[1] Improvements have been made on these basic principles by the courts of the country although the parts of it have been included in the Australian Consumer Law, 2010. In this particular essay, the researcher shall discuss in detail the contractual obligations between each of the parties and the remedies that can be claimed by them. Legal precedents shall be provided to support the conclusion of the researcher and relevant sections of statutes shall also be mentioned.

For a valid contract to exist between two parties, a few elements have been accepted as essential for the contract to be enforceable. These elements include:

A valid offer and acceptance which results in an agreement or a contract- In Smith v Hughes[2], the intention of both the parties to en....