Premium Essay

Tabl1710

In: Business and Management

Submitted By xgdragonx
Words 2037
Pages 9
Introduction
Billy is asked if he is legally entitled to the extra $20,000 and a share in the farm as promised to him by this father Choy, for continuing the operations on the farm. Billy gives up a year of study at university to do so and in return is promised $30,000 and a share of the land by Choy. After three months of working he experiences conflict with Choy’s wife, Maggie, but is promised another $20,000 by Choy if he stays.
To determine whether Billy is entitled to the extra $20,000 and a share in the farm we are to first explore whether a contract is formed, and if promissory estoppel would apply in this situation and the relevant terms attached to this contract. Using the common law of contract we can answer these questions, and Billy’s entitlements. a) Is there a contract?
Before Billy can be sure he is entitled to anything we first must establish that Billy and Choy have entered into a legally binding contract. For a legal contract to be held, all essential elements of an offer, acceptance, consideration and intentions to enter into a contract, must be present.
First there must be an offer for a contract to exist. The offer is made by Choy to Billy, for Billy to give up a year of his study and help out on the farm as Choy is away to look after his sick mother, and in return Billy is promised $30,000 and a share of the farm land. We assume that Choy’s offer is communicated clearly and well. Although Billy does not verbally accept the offer, as silence is not a form of acceptance, Billy does show his acceptance through his conduct, similar to the case of Empirnall Holdings Pty v Machon Paull Partners Pty Ltd, which had established that acceptance can be shown through consistent actions, where Billy’s actions of returning to the farm and working represents his acceptance of Choy’s offer. This means that this contract is formed orally as…...

Similar Documents

Premium Essay

Tabl1710 Major Assignment

...Introduction Billy is attempting to claim the extra $20,000 and a share in the farm, which he believes he is entitled to. Choy, however, has calculated that the cost of Billy’s school and university fees amount to greater than the promised $20,000 and that the co-owner of the farm would not allow the transfer of a share in the farm. In order to advise Billy in whether he is entitled to the extra $20,000 and a share in the farm, the key facts and relevant issues must be examined to determine if the elements of a legally binding contract exists. Whether there was an agreement and intention to create legal relations between the two will be used to determine whether Choy has breached a contract between the two. If a contract is found to exist, then the terms must be examined against the facts of the case and the aspects of consideration and promissory estoppel will be considered. a) Are the elements of a contract present in the initial agreement? To determine whether Billy has a right to the extra payment and share in the farm, it must be decided whether the agreement between Choy and Billy is classified as legally binding or not. Three main prerequisites for a valid contract are relevant to this issue: agreement (offer and acceptance), intention to create legal relations and consideration. Choy’s request that Billy give up his tertiary studies for one year to work on the farm for a payment of $30,000 and a share in the farm has the characteristics of an......

Words: 2706 - Pages: 11

Free Essay

Tabl1710

...ANSWERING A LEGAL PROBLEM: THE ‘FIVE STEP’ PLAN WHAT YOU NEED: • KEY FACTS • RELEVANT ISSUES • KEY LEGAL PRINCIPLES • APPLICATION OF THE LAW TO THE FACTS • TENTATIVE CONCLUSION WHAT TO DO: 1) Identify KEY FACTS of the problem Unlike judges, when you answer a problem or case study you do not need to summarise the facts of a problem. What you should do is identify the key facts. 2) Identify RELEVANT ISSUE of the problem From the key facts, you should then be able to identify the relevant issues in the problem you are considering. 3) Identify KEY LEGAL PRINCIPLES Once you have worked out the issues, ask: (a) does a statutory provision apply to this situation and, if so, does it provide a specific answer to the problem? AND (b) are there any cases which have dealt with a similar fact situation/legal issue to the one you are considering? You should provide the name/section of any relevant legislation and the names of any relevant cases in your answer. Note similarities to (follow) or differences from (distinguish) prior cases When reading a problem it is a good idea to jot down the names of cases that you have studied, where the facts/legal issues were similar, if not identical to the ones in the problem you are considering. Often the facts of a problem may be similar to but a little different to those in a decided case. Think about whether any factual differences matter. Whether or not any differences matter will......

Words: 707 - Pages: 3