Question

1. If you enter into an agreement with your landlord that you will wash his car three times every week in return for you staying with him, would you classify it as an enforceable agreement? Give reason for your answer.

2. Explain in your own words what you understand to be social and domestic situations in this context.

3. Imagine you went to a shop and bought ten items which cost about $40, using your EFTPOS card from a prominent bank. You know you have more than $500 in your account. However, after filling your trolley with the items, you were not allowed to purchase the items because the EFTPOS machine was out of service. Do you have an agreement with the shop, and if yes, can you enforce it and take the ten items home?

4. Given a situation where tradesman sells a toolbox and boy’s father. The boy’s father offers tradesman, $50 for the toolbox, but the tradesman rejects the offer as it was advertised for $75. He says he will not sell it for a penny less”. As soon as boy’s father starts to walk away, the tradesman says “I will accept your offer.” The boy’s father has now changed his mind and does not want to buy. Is there an agreement or has the offer lapsed through a counter offer?

5. Imagine you were arranging someone to cut the grass in your yard. The grass cutter charged you $50 and you offered him $40. The grass cutter took into consideration the price of the fuel. Would you accept his initial offer of $50? You may refer to relevant cases to assist in your answer.

6. Explain the following terms with reference to cases- Intention, Offer, Acceptance, Counter-offer, and Invitation to treat.

Answer 1

1. If you enter into an agreement with your landlord that you will wash his car three times every week in return for you staying with him, would you classify it as an enforceable agreement? Give reason for your answer.

Answer 1)

No Consideration would amount to a Gift and such an agreement is not enforceable by law. Consideration in kind is also acceptable and it may not be equal and can be a small consideration like service , items or even promises. If an enforceable contract or agreement is there , there must be some exchange of value.

In the given case, consideration for Rent is service of war washing by the Tenant and yes, it is enforceable agreement as this quality as non cash consideration and it enforceable by law.

2. Explain in your own words what you understand to be social and domestic situations in this context.

Answer 2)

Social and domestic situations in this context would have great impact over the legality of enforceability of this agreement. When it is an agreement on social grounds , there is no legality aspect as there is no consideration and without a consideration no agreement can be treated enforceable

Domestic conditions also and relationship , there is no presumption to be legal binding and here also when two persons act based on domestic relationship, the agreement between them cannot be treated enforceable and here is when no consideration , it is not legally enforceable.

3. Imagine you went to a shop and bought ten items which cost about $40, using your EFTPOS card from a prominent bank. You know you have more than $500 in your account. However, after filling your trolley with the items, you were not allowed to purchase the items because the EFTPOS machine was out of service. Do you have an agreement with the shop, and if yes, can you enforce it and take the ten items home?

Answer 3)

When a customer goes to a shop and has bought certain items, he is bound to have a legal contract , may not be written but implied that he has to pay the consideration to buy the items. When he has selected and taken with him some items , he is assumed to have purchased same for which consideration is liable to be paid. Any kind of mode of payment can be chosen for the consideration.

However, in the given case, if it was a prior information or printed somewhere in the shop that EFTPOS machine is out of order , the customer would have taken note of it and must have done selection accordingly. Here, it is the duty of the shopkeeper to keep the machine intact for the purchased items, he has to ensure that he provides the alternative options for payment. However, in the given case, the customer has done his part but the consideration is still to be paid , hence, the contract is still open and can be revert back. The Customer can raise his concern to the shopkeeper but he cannot enforce the shopkeeper to carry the ten items home as he has not paid the consideration , may be for technical reasons.

The shopkeeper cannot be enforced in this case.

4. Given a situation where tradesman sells a toolbox and boy’s father. The boy’s father offers tradesman, $50 for the toolbox, but the tradesman rejects the offer as it was advertised for $75. He says he will not sell it for a penny less”. As soon as boy’s father starts to walk away, the tradesman says “I will accept your offer.” The boy’s father has now changed his mind and does not want to buy. Is there an agreement or has the offer lapsed through a counter offer?

Answer 4)

An offer or counter offer is enforceable when both parties have consented to the terms and conditions. It cannot be called an agreement until both have agreed to buy and sell , respectively. In the given case, the first offer was for $ 50 by customer while it was $ 75 by the shopkeeper. At counter offer, the $ 50 was the price by the shopkeeper but the customer didn’t agree. The Salesman cannot enforce selling to the customer as he has not agreed for the offer and there is no deal as such , at the closing of conversation.

The Offer has lapsed , when counter offer was made . The counter offer was not accepted hence no agreement exist.

5. Imagine you were arranging someone to cut the grass in your yard. The grass cutter charged you $50 and you offered him $40. The grass cutter took into consideration the price of the fuel. Would you accept his initial offer of $50? You may refer to relevant cases to assist in your answer.

Answer 5)

Offer and Counter offer are two terms of an agreement when a counter offer is made, the Offer , automatically is rejected and until the counter offer is agreed by both the parties, it is not an agreement.

In the given case, The Grass cutter charged $ 50 while we offered him $ 40 . When the grass cutter justified the price by putting the price of the fuel factor , we agreed for $ 50. We can accept the offer as we are convinced about the price of $ 50 but we have clearly and loudly , confirm this to the Grass cutter , before he starts cutting the grass and grass cutter also should not start the work , until there is a confirmatory statement by the owner of the property.

When both agree for $ 50 , then it is an agreement and enforceable to each other.

6. Explain the following terms with reference to cases- Intention, Offer, Acceptance, Counter-offer, and Invitation to treat.

Answer 6)

Intention : Meaning of Intention is a confirmation or plan to do a certain activity .

Example : Someone has intention to work for a Company

Offer : Offer is putting consideration for the Intention . The consideration may be cash or non cash also.

Example : Someone was offered a Salary of $ 100 per hour

Acceptance: Acceptance is the willingness to the agreement on the offer made by the other party. It is agreeing to work for the goods or services offered at a consideration.

Example : Someone agreed for an offer of $ 100 per week to a certain Company

Counter Offer : A Counter offer is the offer which is replacing the original offer and the result of acceptance of counter offer, that original offer is rejected and no more a legal binding. If the counter offer is agreed by both the parties, it is a legal agreement.