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Formation of Contract II: Seminar Questions: Week 7

This document provides seminar questions about contract law concepts, including: 1) Whether Richard has a valid contract with his father to do yard work in exchange for payment, given the requirement of intention to create legal relations. 2) Whether Johnny's gift of lending his car to Ash constitutes a valid contract, given the requirement of consideration. 3) Whether a police officer is eligible for a reward for providing information leading to an arrest, focusing on the requirement of consideration. 4) Whether the doctrine of promissory estoppel applies in a case where a debtor claims reliance on a creditor's agreement to accept a lower repayment amount. The questions then examine issues of capacity to contract and

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73 views

Formation of Contract II: Seminar Questions: Week 7

This document provides seminar questions about contract law concepts, including: 1) Whether Richard has a valid contract with his father to do yard work in exchange for payment, given the requirement of intention to create legal relations. 2) Whether Johnny's gift of lending his car to Ash constitutes a valid contract, given the requirement of consideration. 3) Whether a police officer is eligible for a reward for providing information leading to an arrest, focusing on the requirement of consideration. 4) Whether the doctrine of promissory estoppel applies in a case where a debtor claims reliance on a creditor's agreement to accept a lower repayment amount. The questions then examine issues of capacity to contract and

Uploaded by

diyana manoga
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LAW 101 Seminar Handout

Week 7
Formation of Contract II: Seminar Questions

Essential Element 2: Intention (Revisited)

1. Richard, an impoverished university student, and his millionaire father enter into an arrangement
where Richard agrees that he will keep the front and back yards of the family property mowed, and
he will ‘do a bit’ to keep the gardens looking tidy. In return, his father agrees to pay him a weekly
allowance of $200. His father had previously used a garden contractor to do the job and paid him
$350. They live on a one-hectare property, and the mowing alone takes half a day a week. After four
weeks, Richard’s father tells him that he can’t afford to pay $200 a week. He says that Richard should
be doing the work for nothing, as it is the responsibility of the whole family to look after the
property; besides, he says, Richard is getting free board and lodging. Advise Richard, focusing on the
requirement of intention to create legal relations.

Essential Element 3: Consideration

2. Johnny promises to lend his car to Ash for a week as a gift. Ash, in return and without Johnny’s
knowledge, leaves an envelope containing $50 in Johnny’s wallet. Is there a contract between Ash
and Johnny? Focus upon the requirement of consideration.

3. Rory offered a reward of $1000 to whoever would give information that would lead to the conviction
of the person or persons who broke into his house and stole all of his wife’s jewellery. Max was a
police officer in the district where the offence occurred, and during the course of his investigation he
was able to provide the information which led to the capture and conviction of the felon.

Advise Max whether he is eligible to recover the reward. Would your answer be any different if
Max was off-duty when he discovered the information?

The Doctrine of Promissory Estoppel

4. Jenny (one of Johnny’s waiters) owes Johnny $500. Jenny tells Johnny that because of unforeseen
medical expenses she will be unable to repay the debt in full. Johnny agrees to accept $300 in full
satisfaction of the debt. The next day Johnny sees Jenny buying a new ePod, and Johnny tells Jenny
that since she is clearly not in that much financial difficulty, Johnny has changed his mind and wants
the debt repaid in full. Can Johnny enforce the debt? Include in your answer an examination of
whether or not Jenny can rely upon the doctrine of promissory estoppel.

1
STEP TWO: Testing for Validity

Capacity

5. Johnny and Gary are at a party together. After having had quite a few drinks, Johnny agrees to swap
his car for Gary’s motorcycle. The next day Gary shows up at Johnny’s house to complete the
exchange, but Johnny says he was drunk at the time he made the agreement and has changed his
mind. In what circumstances can Gary enforce the agreement with Johnny?

Legality

6. Phoebe is the chair of a large charity. Phoebe tells Maria that if Maria makes a substantial donation
to the charity, Phoebe will use her government connections to ensure that Maria is given an Order of
Australia the following Australia Day. Maria makes the donation but the Order of Australia does not
eventuate. Can Maria enforce her agreement with Phoebe?

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