In Australia, the common contract law governs the terms and administration of the contracts. There have been prescribed various elements necessary for the contract formation namely the Agreement, Consideration, Intention to create the legal relationships and the capacity of the parties. It is significant to note that the agreement consists of the extension of offer by one of the parties and acceptance of the same by the other party, and it involves the consensus – between two or more parties generally referred to as the ‘meeting of the minds.’ For consideration, it is crucial to note that the consideration must be sufficient though need not be adequate. For the capacity of the parties, the law has prescribed certain category of the persons that are barred from contracting such as one having significant mental impairment, people under influence of drugs, minors below the age of the maturity, and the bankrupts. The parties must be ready to enter in a legally binding contract.
In the given case study, the parties intend to enter into a legally binding contracts evident by the exchange of the emails and the communications. The certain amount of consideration between the two parties in the form of the contract amount of $ 70000 have been decided. The parties possess the capacity to contract as well. The company can enter into the contract with the aid of specified persons and in the given case it is Dudely. However there is no meeting of minds between the parties on the most crucial term of the contract that is the pattern of the tiles. The absence of the clarity in the terms makes the absence of the agreement between the parties.
Bibliography
Books and Journals
Latimer, P. (2016) Australian Business Law 2016. Sydney, NSW: CCH Australia Limited.
Others
Lawbuddy, Contracts In Australia, (Web Page, 05 July 2019) < https://www.lawbuddy.com.au/contracts-in-australia/>
