Case Study Of Masters V. Cameron Case

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• Factual Background In Masters v Cameron case, these two parties have reached an agreement for the sale of Mrs Cameron’s farming property. The agreement was made in the written memorandum with both signatures on 6th December 1951. This memorandum also contained an important information in it, wrote as ‘this agreement is made subject to the preparation of a formal contract of sale which shall be acceptable to my (Cameron’s) solicitors on the above terms and conditions’. Also one day later, a deposit of 1,750 pound have been paid by the purchaser-Mr. and Mrs Masters to Cameron’s real estate agent, in order to meet the requirement that vendor asked, however in the later time, before them to sign the formal contract, the purchaser refused to …show more content…

There will be more consideration than before, not only just applied the Commonwealth Law and Consumer Law from paper. Like according to the previous court decision, the preliminary agreement along with the head of agreement and even the memorandum, if once they have contained some really detailed and essential information with signature, even there is a sentence made towards to agree that this negotiation-like agreement shall be dealt with by a formal contract, it still be able to form into a legally binding contract, however, refer to this case and Malago v Ellis Engineering , the decision may be changed, as the judge will have another 3 categories to identify whether there is a binding contract constituted or …show more content…

Therefore, there was no binding contract between Masters and Cameron, and of course these two parties then would not be bounded by their memorandum and at last, the sum of 1,750 pound deposit should be return to Mr. and Mrs. Masters. • Conclusion To be concluded, in the Master v Cameron case, their memorandum which fall into the third category that means it could not constitute a binding contract, as there is no intention to be bound. Also, because the special form of words was used in the agreement as ‘subject to the formal contract’, which make this memorandum seems more like a negotiation contract, therefore, still there is no binding contract existed, and the purchaser –Mr. and Mrs. Masters are not bound by the agreement, then the sum of 1,750 pound of deposit should return to the purchaser-Mr. and Mrs.

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