An Introduction to Australian Commercial Law.

Full Answer Section

    Certainty is another crucial element. The terms of a contract must be sufficiently clear and definite for a court to enforce it. Vague or ambiguous terms can invalidate a contract.   Topic 3: Contract Formation 2 (Intention, Consideration, and Promissory Estoppel)

Intention to create legal relations is the presumption that parties intend to create legal relations when entering into a contract. However, this presumption can be rebutted in certain circumstances, such as domestic or social agreements.

    Consideration is something of value given or promised by one party in exchange for the promise or act of another. It is essential for the formation of a contract, except in cases of deeds or promissory estoppel.   Promissory estoppel is an equitable doctrine that can enforce a promise even without consideration in certain circumstances. It requires:   A clear and unambiguous promise

• Reliance on the promise by the promisee
• Detriment suffered by the promisee as a result of reliance
• Unconscionability if the promisor is not allowed to renege on the promise

Key Points

• Contract formation is a fundamental concept in Australian commercial law.
• Agreement, certainty, intention, consideration, and (in some cases) promissory estoppel are essential elements.
• Understanding these elements is crucial for businesses to protect their interests and enforce their rights.

   

Sample Answer

     

Topic 2: Contract Formation 1 (Agreement and Certainty)

Agreement is the first essential element for a valid contract. It is typically established through a process of offer and acceptance.

 

• Acceptance: Unconditional assent to all terms of the offer. It must be communicated to the offeror