Reference no: EM132222252
It is said that we all make a variety of contracts every day.
How can this be? How is it that we make agreements without actually necessarily saying anything to another party, or even determining the terms of these agreements?
A group of friends meet for a regular drink at a hotel every Friday night. Each contributes $2 towards a group lottery ticket, which is drawn over the weekend by Lotto company.
One of the group is given the role of actually buying the syndicate ticket.
When in fact a winning ticket is drawn for the group the purchaser of the ticket claims the arrangement is purely social and there is no arrangement whereby he needs to share the prize. Analyse this issue in terms of contract law.
Consideration must be sufficient but does not have to be adequate. What does this mean? Can you give examples of consideration which are:
• Sufficient but not adequate; or
• Not sufficient nor adequate.
Ming runs a hair salon called Australian Hairlines (Hairlines). Ming decides to promote the business by advertising a ‘special offer’ in the local paper. The advertisement he places in the local newspaper states that ‘Hairlines’ will, on the production by the customer of the advertisement, give that customer a haircut at the low price of $10.
The day after the advertisement is published some 50 people arrive at the salon asking for the special haircut at $10. Ming is overwhelmed by the response and realises that the salon will lose a lot of money if this promotion continues. Ming decides to put up a sign in the Salon’s window which states THE OFFER OF HAIRCUTS AS ADVERTISED HAS NOW FINISHED.
Explain the law as it applies to the following persons:
• Forty customers produce the advertisement before the notice goes up in the window. Are these customers able to enforce any legal agreement? Explain with reference to contract law.
• Ten customers do not have the advertisement with them, but still want to participate in the promotion. Are these particular customers able to enforce any agreement?
• Could Ming argue that the payment of $10 is insufficient for the promise of what would normally be a $60 haircut, and consequently there are no legal obligations on the business?
Ming believes he has now withdrawn the promotion and has no further obligation to provide cut price haircuts. Is this correct?
Exclusion clauses
Will and Jenny booked a bus tour going from Melbourne to the Hunter Valley wine region for a short holiday with Hunter Busline. They purchased their tickets from the local travel agent and the tickets were to be collected at the point of departure. Just before getting on the bus, when they were collecting their tickets, they were asked to sign a document which confirmed their personal details. They thought it was simply a receipt for the tickets.
As they were travelling out of Sydney, Jenny took off her seat belt and went to the baggage compartment to collect a book she was reading. Just as she was doing this the bus braked suddenly and Jenny fell and broke her wrist and suffered nervous shock which all but ruined the holiday.
When Jenny sued Hunter Busline for damages for her injury and the loss of enjoyment of her holiday Hunter Busline drew Jenny’s attention to a clause in the printed form that she had signed which stated that the Hunter Busline was not liable for any injury howsoever caused to passengers not wearing a seatbelt.
Advise Jenny whether she can successfully sue the Hunter Busline for damages for her injury and the loss of enjoyment of her holiday.