uestion 2 (15 Marks. Suggested word limit 1,000 words) Elvis had a birthday part
ID: 2524804 • Letter: U
Question
uestion 2 (15 Marks. Suggested word limit 1,000 words) Elvis had a birthday party at his home, in Katoomba, New South Wales. One of his guests, Jennifer, is a florist. Elvis has 3 large vases that he would like filled with a variety of Australian wildflowers. He asks Jennifer if she can help him by getting flowers for his large vases. Jennifer is new to town and trying to build business relationships so she is eager to help. Jennifer agrees to help Elvis the first thing the next day. They do not discuss fees. Jennifer arrived at 8am the next day and she filled up the first vase with flowers. Then Elvis arranged them. They looked great. Jennifer was impressed at his flair with colours and arranging flowers. Jennifer didn’t have enough flowers for 2 more vases. She left and promised to return the next day. Overnight, Jennifer emailed Elvis and said that the fee for filling the vases would be $150 per vase. Elvis emailed her back with "No worries - see you tomorrow." Jennifer returned with more flowers and completed filling the other two vases with flowers. The following day, Jennifer sent Elvis an invoice for $450: Made up of $150 for each bunch of flowers for each of the 3 vases. Elvis seeks your advice on the legal issues. a) Briefly explain what a contract is and how a contract is formed. b) When was the contract formed between Elvis and Jennifer? c) What are the basic terms of the contract between Elvis and Jennifer? d) How much is Elvis contractually obliged to pay Jennifer?
Explanation / Answer
a) A contract is a voluntary, deliberate and legally binding agreement between two or more parties, either written or spoken or implied. An agreement becomes a contract when it has all the following characteristics:
A contract is formed at the time when all of its (above mentioned) essential components are present.
b) Contract between Elvis and Jennifer was formed when-
Elvis made the OFFER to Jennifer to work for him. Jennifer ACCEPTED THE OFFER and AGREED to fulfill it. The next day when Jennifer emailed Elvis regarding the CONSIDERATION i.e 150$ per vase and Elvis accepted this by replying- no worries. This meant that he has no problem and is agreeing to pay the amount. And it can be inferred from the circumstances that both PARTIES intended the contact to take effect. Here both the parties were competent to create the contract.
Usually, the unsigned document does not evidence the formation of a contract, but if the parties have acted in a way that suggests that there is a contract, such as by starting to perform it, in a way that is consistent with the terms of the contract an d Jennifer started.
c) Basic terms of contract between Elvis and Jennifer are-
d) Here in this case, there was this implied contract because Elvis replied to the mail of Jennifer stating that she will charge a particular amount. This shows that Elvis received the mail and agreed to it. So contractually Elvis is liable to pay the full 450$ amount. If Elvis would have not responded to the mail there would have been chances that he doesn't have to pay.
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