1.Issue
Whether a contract has formed between Frank and any other party?
Rule
In order to form a valid contract, the essential elements of a contract must be fulfilled by the contracting parties. These essential elements constitute a valid contract which binds the contracting parties into its legal terms and parties can legally enforce each other in case a party violated the terms of the contract. Following are essential elements of a valid contract:
In Entorres v Miles Far East (1955) 2 QB 327 case, the court provided that the general rule of communication is that offeree must communicate it before it becomes ineffective. In Felthouse v Bindley (1862) EWHC CP J35 case, the court provided that silence cannot constitute a valid acceptance (Gordon, 2014).
Application
In the present case study, Frank put a sign on his car to sell it for $2000. This is not an offer; instead, it is an invitation to treat. Based on this invitation, parties are required to make an offer to Frank if they are interested in purchasing his car as discussed in Partridge v Crittenden case. Bill saw the sign and offered Frank to pay $1600 for his car. In this case, an offer is made by Bill and Frank did not accept this offer, thus, a contract has not formed between the parties. As discussed in Felthouse v Bindley case, the silence of Frank cannot be constituted as acceptance. Mark made an offer and sent a cheque of $1950 to Frank. The cheque was deposited in the bank by Frank; however, Frank did not expressly give his acceptance to Mark. A suit can be filed by Mark to recover the money; however, no contract has formed between them. John gave his acceptance to purchase the car of Frank; however, the sign was an invitation to treat which cannot be accepted by parties. Tom made an offer to Frank to pay $1700 for his car and Frank told him that he would accept this offer if he did not receive a better offer. Firstly, it is a social agreement which is not enforceable, and later Frank also rejected the offer of Tom. No contract has formed between Frank and other parties, thus, he is free to sell his car to John.
Conclusion
To conclude, no contract exists between Frank and other parties. Mark can file a suit to recover his money, and Frank can accept the offer of John to sell his car
2.Issue
Whether Renee can legally enforce Graphic Advertising Pty Ltd to increase her salary and provides her back pay?
Promissory estoppel is an equitable estoppel which stops a party from going back to his/her promise. The object of this estoppel is to prevent people from insisting on their strict legal rights. To implement the provision of promissory estoppel, parties have to prove that certain elements are fulfilled. Total Metal Manufacturing Ltd v Tungsten Electric Co Ltd (1955) 1 WLR 761 is a relevant case regarding the doctrine of promissory estoppel because its modern concept was developed in this case (Monaghan and Monaghan, 2013). It ensures that people did not misuse their legal rights to promising something which they are not going to fulfil. Following are key element of promissory estoppel which must be proved by parties to enforce a promise based on this doctrine.
Application
In the given case study, Julius promised Renee that he would increase her salary and also give her back pay if she continues to work for Graphic Advertising Pty Ltd. To recover such salary and back pay, Renee can implement the provision of promissory estoppel. To implement the provision of promissory estoppel, certain elements must be fulfilled by the parties. Firstly, a pre-existing contractual relationship must exist between parties as given in Brikom Investments Ltd v Carr case. Moreover, Julius clearly mentioned the promise and its terms were unambiguous. He clearly mentioned that the salary of Renee would be increased by $150 and this increase will be backdated from 1 December. After the promise of Julius, the contractual relationship between Graphic Advertising Pty Ltd and Renee were changed which is an essential element of the doctrine of promissory estoppel as discussed in Ajayi v Briscoe case. It was also the reason due to which Renee declined the offer of Cool Advert. The promise for increase in salary is justifiable because Renee’s work is excellent, and she was struggling with her current salary to cover rent and childcare expenses (D & C Builders v Rees). If the court would let Julius go back on his promise, then it will be inequitable for Renee.
Conclusion
To conclude, the elements of the doctrine of promissory estoppel discussed above are fulfilled in this case. Thus, Renee can rely on this equitable doctrine to legally enforce Julius and Graphic Advertising Pty Ltd to increase her salary along with back pay.
References
Ajayi v Briscoe (1964) 1 WLR 1326
Angus, T. (2012) Curtis and others v Pulbrook and others. Trusts & Trustees, 18(9), pp.870-875.
Balfour v Balfour (1919) 2 KB 571
Barker, D. (2014) Law made simple. Abingdon: Routledge.
Brikom Investments Ltd v Carr (1979) CA
D & C Builders v Rees (1966) 2 WLR 28
Entorres v Miles Far East (1955) 2 QB 327
Felthouse v Bindley (1862) EWHC CP J35
Furmston, M.P., Cheshire, G.C. and Fifoot, C.H.S. (2012) Cheshire, Fifoot and Furmston’s law of contract. Oxford: Oxford University Press.
Gordon, B. (2014) Acceptance by conduct in ecommerce transactions in Australia. Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia, 28(2), p.3.
Graw, S. (2012) An introduction to the law of contract. Toronto: Thomson Reuters.
Harvey v Facey (1893) UKPC 1
Knapp, C.L., Crystal, N.M. and Prince, H.G. (2016) Problems in Contract Law: cases and materials. Alphen aan den Rijn: Wolters Kluwer Law & Business.
Martin, J. (2014) Key Cases: The English Legal System. Abingdon: Routledge.
Monaghan, C. and Monaghan, N. (2013) Beginning Contract Law. Abingdon: Routledge.
Partridge v Crittenden (1968) 2 All ER 425
Re McArdle (1951) Ch 669
Thomas v Thomas (1842) 2 QB 851
Total Metal Manufacturing Ltd v Tungsten Electric Co Ltd (1955) 1 WLR 761
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