Question (a) 10 marks
The legal issue in question was the elements of agreement that are required for the formation of a legal contract.
The elements of an agreement that are required for the formation of a legal contract is that it should consist of both offer and acceptance. This being said, there are principles that constitute an offer and acceptance.
An offer consists of the element of promissory. This means that there must be an undertaking or promise to give or do something. This is shown in the Placer Development Ltd v Cth case, where the Commonwealth agreed to pay a subsidy to timber importers an amount of money or interest rate that is determined by the Commonwealth from time to time. After an initial payment was made, it was stopped. Placer then takes into action against the Commonwealth to legally enforce the payment of subsidy. The issue that arises in this case was that should the subsidy amount which was agreed to be paid considered a legal enforceable promise. The court came to a decision that it was not a legal enforceable promise for a promise with an unspecified amount to which the promisor has yet to clearly state.
(Placer Development Ltd v Cth [1969] 121 CLR 353, cited in Lambiris 2012, 248)
An element of offer is that it must intend to result a contract if accepted. This means that the offer is intended to be legally binding. This can be seen through Partridge v Crittenden case. In this case, Partridge advertised Bramblefinch cocks and hens which 25 dollars each for sale. He was prosecuted by the RSPCA for illegal offering a contract selling wild birds. The issue is whether this advertisement is an offer or is just “invitation to treat”. The court held that the advertisement does not seem to be an offer for it was merely an invitation to persons who are interested in purchasing the birds to which placed an offer wishing to buy the birds where should Partridge accept the offer then be considered an