Elements of an enforceable contract
The main issue in association to the scenario that has been given is whether an enforceable contract has been established amidst Carmelina and Hellyay.
A binding and an obligatory agreement shall only be formed when there is the existence of an offer as well as an acceptance. The case quoted to be Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20 can be regarded to be a pertinent case regarding the matter. In this case, it was detailed that in order for a binding and obligatory agreement to exist, there should be a clear indication of an offer from one party and a clear acceptance of the clear indication of offer. Furthermore, in the case of Pharmaceutical Society v Boots Cash Chemists [1953] EWCA Civ 6, it was said that in case of the clear indication of offer and the unequivocal acceptance of such offer shall be determined on the basis of the actions of any reasonable person.
Consideration is a significant element in relation to contract. In relation to this subject matter, the old case cited to be Currie v Misa (1875) LR 10 Ex 153 is a very important case. In the Currie v Misa case, in the absence of the element of consideration, it shall not be possible to establish a contract. Another significant case regarding the subject matter is the case cited to be Beaton v McDivitt (1987) 13 NSWLR 162. In this case, it had been said that one shall be able to enforce any specific promise in the form of a contract, only when such promise is actually supported by a particular consideration. In the case of Director of Public Prosecutions for Victoria v Le [2007] HCA 52, it was said that consideration could be in any form, ranging from money to a promise of performing or not performing any act.
The intention to form legal relations is another significant element in connection to the establishment of a contract. In this regard, the case quoted to be Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8 can be said to be a vital case. In the case, it had been said that in the absence of the intention to create legal relationships, it shall not be possible to establish a contract. Furthermore, the case of Masters v Cameron [1954] HCA 72 is another crucial case in this regard. In the Masters v Cameron case, it had been specified that the involved parties may intend to be instantly bound, however, it should be noted that their performance of the terms shall be suspended until the intention of the parties has been formalized through the conclusion of any specific legal documentation.
The case of Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd [1968] HCA 8 is a significant case in this regard. In the case, it was said that any particular contract should be complete and certain in a sufficient manner, and hence, it should be in a written form to evade any kind of complications.
Case laws regarding the formation of a contract
In the given scenario, Hellyay wished to form a contract with Carmelina regarding the old cite for the purposes of music videos.
Applying Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20, it can be said that a binding and obligatory agreement certainly exist amidst Hellyay and Carmelina because there was a clear indication of offer from Hellyay and then a counter offer by Carmelina, and ultimately, a clear acceptance by Hellyay of the counter offer through a couriered memo. Furthermore, applying the case of Pharmaceutical Society v Boots Cash Chemists [1953] EWCA Civ 6, it can be said that in case of the clear indication of offer and the unequivocal acceptance of the offer, the actions of Hellyay and Carmelina were that of a reasonable person.
In relation to this subject matter, the old case cited to be Currie v Misa (1875) LR 10 Ex 153 is an applicable case. Applying the Currie v Misa case, in the absence of the element of consideration, it shall not have been possible for Hellyay and Carmelina to establish the contract. Another applicable case regarding the subject matter is the case cited to be Beaton v McDivitt (1987) 13 NSWLR 162. Applying this case, it can be said that Carmelina and Hellyay would be able to to enforce their specific promises in the form of a contract, because their promises are actually supported by particular considerations. Applying the case of Director of Public Prosecutions for Victoria v Le [2007] HCA 52, it can be said that consideration could be in any form, ranging from money to a promise of performing or not performing any act. Hence, in the scenario, the considerations of Carmelina and Hellyay included Carmelina allowing Hellyay to use the place in exchange of Hellyay doing the publicity campaign.
Applying Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8, it can be said that the intention to create legal relationships was present in case of Carmelina and Hellyay, and hence, it shall be possible form them to establish a contract. Furthermore, the case of Masters v Cameron [1954] HCA 72 is another applicable case in this regard. Applying the Masters v Cameron case, it can be specified that the Carmelina and Hellyay, both intended to be instantly bound, however, it should be noted that their performance of the terms shall be suspended until the intention of Carmelina and Hellyay has been formalized through the conclusion of any specific legal documentation. The documentation had certainly been drawn which Hellyay forgot to sign.
The case of Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd [1968] HCA 8 is an applicable case in this regard. Applying the case, it can be said that the particular contract amidst Carmelina and Hellyay was complete and certain in a sufficient manner, and it was in a written form to evade any kind of complications.
Conclusion
To conclude, an enforceable contract has been established amidst Carmelina and Hellyay, even if Hellyay forgets to sign the contract, as all the necessary element of contract have been fulfilled.
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