Olley V. Alastair: The Elements Of Contract Law

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The issue is if Walter Jones and the crew members have a valid agreement, through contract to receive a 30% bonus over his current wages for agreeing to sail back to New Zealand.

In order for a contract to form it must meet the elements of a contract such as intent to create legal relations, offer, acceptance, valuable consideration, and certain terms (NZII). In the case of Olley v. Marlborough Ltd it was held that the contract for the room was made when they checked into the hotel at reception. There was a notice which was introduced after he contract had been made, and therefore was not enforceable. Similarly, in Chapelton v. Barry Urban District Council it was held that new terms could not be introduced after the offer had been accepted.
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Alastair believes that a contract was agreed upon, whereas Paige Black does not believe that an acceptance of a deal was made. The area of contract law will govern if a valid contract was made. In order to prove that a binding contract has formed, both parties must establish the following elements. The parties must have intended to create legal relations and there is a strong presumption that in a commercial context that there is an intent to create legal relations unless explicitly stated (NZII). One of the parties must have made an offer which is an expression of willingness to be legally obligated if the other party accepts (extra readings). The other party must have also accepted that offer, and it must have been communicated unambiguously to the offeror (NZII). Additionally there must be valuable consideration between the two parties for the contract to be binding and the terms of the contract must be certain …show more content…
Cash Chemists (Southern) Ltd It was held that the offer to purchase was made when the customer went to the checkout, and the sale was accepted when the cashier rang up goods on the till. The action of preparing the item for sale constitutes acceptance in this case, and similar actions such as wrapping the good will imply acceptance. In the case of Airways Corporation of New Zealand Ltd v. Geyserland Airways Ltd the respondent clearly stated that the charges (cost) were unacceptable. There was not acceptance by conduct due to the fact that the airline explicitly stated they were not accepting the offer. Some additional legislation may be applicable, the Fair Trading Act Part 1 Section 9 states: “no person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive”, and under section 41 of this act they have the ability to grant an injunction that would constitute an contravention in part 1 section 9 (NZ

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