Contract In Contract Law

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Part A
Question 1
Step 1: Area of Law
The area of law is focused on Contract Law in regards to the formation of a contract and specifically on the element of agreement for offer and acceptance.
Step 2: Principles of Law
A contract is a legally enforceable agreement between two or more parties. When a contract is made, parties become subject to legal obligations, whereby there is a legally binding duty to give or do something. This is known as the contractual rights and duties that parties must perform. These contractual duties will bind the parties until they are discharged.
The element of agreement is one of the three essential requirements for the formation of a contract before a contract can come into existence. The element of agreement can be referred to as the ‘meeting of the minds’. An agreement must be reached on the essential terms needed for a workable transaction. The parties must have reached agreement on any matter that they have indicated must be agreed upon before the contract is completed. An agreement can be met by means of offer and acceptance.
An offer is a clear indication of the terms upon which a person is prepared to be bound. An offer must be promissory with the details of the promise fixed for it to enforceable. A case with an offer that was not promissory can be seen in the case of Placer Development Ltd v Commonwealth. In this case the Commonwealth government said that it would pay subsidy to companies that imported timber products into Australia. The amount of the subsidy was not fixed but to be determined at a later time. Placer had imported timber and wanted to enforce payment of the subsidy.
The court held that what the government had said was not a legally enforceable promise because a promise wit...

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... under the employee’s supervision. Xpress Printing & Stationary can rely on the exclusion clause in the contract although it will be critically challenged by the other party since it had failed to perform a condition term followed by its negligent actions.
Step 4: Possible conclusion
In conclusion, Xpress Printing & Stationary will not be able to rely on its exclusion clause since the errors occurred were not specifically due to anything stated in the exclusion clause. The errors were caused by a vacation student and could have been avoided if the employee had not allowed the vacation student to experiment with the machine and if the employee had handled it him/herself. Adding on, if proof reading had been performed (which was part of the term of the contract) the errors could have also been avoided. Therefore, the fault clearly lies on Xpress Printing & Stationary.

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