Law Contract Case Study Essay

978 Words Mar 26th, 2012 4 Pages
Case 1
Issue
This problem addresses the issue of agreement, whether there is a valid contract or the offer may be terminated. In order to the contract being valid and enforceable, there is a need for the conduct of an offer and an acceptance.
Rule
For an offer to be valid, it contains some rules, including lapse of time. When an offer is made, it does not last forever. An offer stated to open for a specific period, lapse if the there is no acceptance within that time. If there is no set time for acceptance is stipulated in the offer, the implication of lapse will be exercised after a reasonable time, depending on the facts and circumstances in each case. (see Ballas v Theophilos (No2) (1957) 98 CLR 193; [1957] HAC 90). If the acceptance
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There are a number of ways to define a breach of contract, including the failure to comply with a term of contract, anticipatory breach by announcement of unwilling to perform their obligations and it occurs before the contract is completed or delay in the performance where time is of one the essence in the contract. Secondly, a representation amounts to promissory estoppel must contains some elements, including a need to be clear and made by the promisor to the promissee. The promisee would suffer material detriment if the promisor goes back on their word from the promise and the promise or representation encourage a certain belief in mind of the promisee that lead to the alter in action. (See Legione v Hateley (1983) 152 CLR 406)
Application
In this case, the essence of time for payment period is stipulated as the term in the contract. Therefore, the failure to comply with the term on time brought Lee into the position of breaching of contract, which allows Harry to terminate the contract as has been mentioned. For the representation to be found as an estoppel, it must be clear or clearly implied from conduct. However, the solicitor did not make any clear representation, but his opinion by saying “I THINK that would be all right but I will HAVE TO GET INSTRUCTIONS from the vendor”. There is no promise is given for a further extension and no statement or conduct to assure for Lee’s

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