Media Report Analysis
Part A: Media report analysis
Question (a) 10 marks
1) Using the four-step process, discuss the elements of intention and consideration required for the formation of a contract. In particular, consider whether these elements have been met in order for there to be an enforceable contract between Kate and the travel agency.
For a contract to exist parties to an agreement must intend to create legal relations. The existence of intention is ascertained objectively by having regard to the known circumstance, usually the presence for consideration provides for this.
Agreements in a commercial context are seen as a rebuttal intention to create a legally binding contract. Where the parties to a commercial agreement do not intend it to be binding, they have the onus to provide facts which indicate that the agreement is binding in honour only.
In the case of Esso Ltd v Commissioners of Customs and Excise (1976) 1 All ER 117, Esso Petroleum promised to give motorists a free collectors coin with every 4 gallons of Esso fuel purchased to promote their fuel sales. The issue was whether Esso intended to be legally bound to the offer to give the coins to motorists that purchased their fuel.
The decision by the court was that the terms of the promotion intended to be legally binding. Esso clearly anticipated that they would have value to their customer otherwise the promotion would not have been worthwhile.
The law however presumes domestic or social agreements are not intended to be legally binding. A party that wishes to enforce a domestic or social agreement will need to prove that the parties intend to create a legally binding agreement.
In the Cohen v Cohen (1929) 41 CLR 91 case, the issue was whether there was an intention to enter into legal relations and whether or not an agreement for a husband to give to his wife a dress allowance amounted to a legally enforceable contract.
It was inferred that legally enforceable relations were not
Question (a) 10 marks
1) Using the four-step process, discuss the elements of intention and consideration required for the formation of a contract. In particular, consider whether these elements have been met in order for there to be an enforceable contract between Kate and the travel agency.
For a contract to exist parties to an agreement must intend to create legal relations. The existence of intention is ascertained objectively by having regard to the known circumstance, usually the presence for consideration provides for this.
Agreements in a commercial context are seen as a rebuttal intention to create a legally binding contract. Where the parties to a commercial agreement do not intend it to be binding, they have the onus to provide facts which indicate that the agreement is binding in honour only.
In the case of Esso Ltd v Commissioners of Customs and Excise (1976) 1 All ER 117, Esso Petroleum promised to give motorists a free collectors coin with every 4 gallons of Esso fuel purchased to promote their fuel sales. The issue was whether Esso intended to be legally bound to the offer to give the coins to motorists that purchased their fuel.
The decision by the court was that the terms of the promotion intended to be legally binding. Esso clearly anticipated that they would have value to their customer otherwise the promotion would not have been worthwhile.
The law however presumes domestic or social agreements are not intended to be legally binding. A party that wishes to enforce a domestic or social agreement will need to prove that the parties intend to create a legally binding agreement.
In the Cohen v Cohen (1929) 41 CLR 91 case, the issue was whether there was an intention to enter into legal relations and whether or not an agreement for a husband to give to his wife a dress allowance amounted to a legally enforceable contract.
It was inferred that legally enforceable relations were not