Issue 1: Whether the note in small print about the $1000 replacement fee will bind Weitao.

1.Issue

The related issue of this scenario is whether the note in small print about the $1000 replacement fee will bind Weitao.

Rule

The Contract Law of Australia will be applied in this particular scenario. The elements that constitute the formation of a contract is essential as it decides whether the contract is valid or not. A contract is therefore, formed when one party makes an offer and the other party accepts it. The general constituents that form a contract are offer, acceptance, consideration, capacity and legality. Therefore, if these elements are present when a contract is formed between two parties, it will be considered to be valid. This has been mentioned in the case of Sydney City Council v West. Contracts can thereafter be void, valid, voidable and unenforceable in nature. When the offeror is making an offer or when the proposal is placed to the offeree, it must be in a written form. Such a situation has been observed in the case of R v Clarke. Therefore, these are the necessary requirements that need to be fulfilled and checked when a contract is being formed. The nature of the contract depends on how, when and under what circumstances the contract was formed. If one party has agreed with the terms and conditions of a contract, it will come into existence.

Application

From the given scenario, it can be stated that all the necessary elements were present when the contract was formed between Weitao and Evelyn. While hiring the projector from Electric Blues, he had signed a document that included all the intricate details and duration of the of the hiring process. However, there was also an information provided by Evelyn at the bottom of the page that was overlooked by Weitao while signing it. The note at the bottom stated that in case any kind of damage is caused to the equipment that has been hired, the customer would be bound to pay an amount of $1000 as a replacement fee. Thereafter, the casing was damaged by Weitao and he was asked to pay the amount for the repair. It has been observed that the offer was accepted by Weitao when the proposal was made by Evelyn. Such a situation was established in the case of R v Clarke. Therefore, it can be stated that since all the elements were present during the formation of the contract, it will be treated as a valid contract. 

Issue 2: Whether Warren is correct from his point of view regarding the contract that was formed between Evelyn and Warren.

Conclusion

Lastly, it can be concluded stating that Weitao will be bound by the note and will pay the amount of $1000 for replacing the projector.

2.Issue

The issue in this situation is whether Warren is correct from his point of view regarding the contract that was formed between Evelyn and Warren.

Rule

As per the legislation of the Contract Law, it can be stated that when the contract is formed, the essentials should be present otherwise, it will be considered as an invalid one. A contract can be formed either orally or in a written format. When a contract is formed, both the parties must be aware of the terms and conditions they are agreeing upon. It has been established in the case of Carlill v Carbolic Smoke Ball Co. Both the offeror and offeree should abide by the necessary policies and terms of the contract. From the legislation, it can be said that both the parties must have the knowledge of the nature of the contract. Hence, both the parties involved should know the important elements of the contract that they are forming. A valid and legal contract must always be in writing in the form of an agreement. Both the parties have a certain duties that should be carried out accordingly. Contractual parties should take care of the benefits of a contract.

Application

From the given situation, it can be stated that an oral agreement was formed between Warren and Evelyn. Evelyn had hired Warren to paint the internal walls of the store. Both of them agreed on the condition or consideration, which was the fact that the painting will take a full day’s time. Thereafter, Warren had called repeatedly and got a response from Evelyn where she delayed the entire plan of painting. Therefore, the legislation of contract will be applicable in such a situation where the terms and conditions of a contract must be carried out at the decided time and not delayed. Every contractual party should perform their duties and responsibilities accordingly. Evelyn should not have formed the contract with Warren if she wanted to delay the procedure. 

Conclusion

It can be concluded by stating that Warren is correct since Evelyn was making him wait for performing his duties as it was discussed and formed in the contract. 

3.Issue

The issue that is associated with this scenario is whether Ambreena used the term that involves those particular tablets with more storage space or not.

Issue 3: Whether Ambreena used the term that involves those particular tablets with more storage space or not.

Rule

According to the Contract Law, it has been observed that when a contract is formed with all essential elements, it is important for both the parties to comprehend the terms and conditions of the contract. When the contract is being created, the terms used must be clarified if not understood by the other party. Hence, there should not be any confusion among the parties. Such a scenario has been observed in the case of Causer v Browne. There must be a proper consideration involved in such kind of situations. One must be careful about what he or she stating when the contract is being formed. The necessary elements play a major role in deciding whether the contract can be treated as valid or not. However, in the case of Codelfa Construction v State Rail Authority of NSW, it was observed that there  was a confusion among the parties forming the contract since neither of the parties stated anything clearly or evidently.

Application

In this scenario, it has been observed that Ambreena had bought a tablet from Evelyn and the purpose of which was to complete a significant project. Evelyn had stated that the tablet that she sold to Ambreena had a lot of storage capacity and will be helpful to her. Thereafter, while installing the applications, Ambreena noticed that there was not enough space. Hence, it can be said Ambreena did not ask for the storage directly to Evelyn but Evelyn made her buy one tablet saying that it has a storage but it did not. This will be treated as Evelyn’s fault as well as Ambreena not being clear about what kind of tablet she wants.

Conclusion

It can be concluded stating that Evelyn will be liable towards Ambreena.

4.Issue

The issue of this case study is whether there was an implied term in Jake’s hire agreement and if the charger will be provided with the laptop being hired. 

Rule

As per the Contract Law, it can be said that an implied contract is formed when two or more parties have no written contract. There arises a situation where the law creates an obligation as per the interest of fairness, which is based on the behavior and situation of the parties. It is therefore important to establish the existence of an implied fact in the contract. It has been observed in the case of Associated Newspapers Ltd v Bancks. The terms of an implied contract are generally assumed and implied. As per the legislation, the essential elements are offer, acceptance and consideration of an implied contract. Such a scenario was established in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd. The parties in case of an implied contract or when it is formed implies the general rules.

Application

This scenario deals with the concept of implied contract. It has been observed from the case study that Jake had purchased a laptop from Evelyn by filling out the paperwork. Thereafter, he later realized after reaching home that Evelyn did not give him the charger of the laptop. When he asked for it, she informed that he would be charged extra for that. There was hence an implied term in the hire agreement of Jake. There was no mention of the charger when the laptop was being purchased by Jake from Evelyn. Neither of the parties mentioned the term of the charger, hence neither of the party will be held liable. However, it can be stated that Jake implying that the charger will be provided will be considered as he using an implied term for the hire agreement.

Conclusion

It can be concluded stating that in case of an implied contract, it creates an obligation based on the circumstances. Hence, in this situation, Evelyn will not be held liable for not providing the laptop charger. 

References

Case Laws:

Associated Newspapers Ltd v Bancks

Carlill v Carbolic Smoke Ball Co.

Causer v Browne

Codelfa Construction v State Rail Authority of NSW

Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd

R v Clarke

Sydney City Council v West