Australian Law And Business Case Study

2464 words - 10 pages

File No. 1Background of the caseJack is a taxi driver and was stationed at the Toowoomba Railway Station for picking up passenger on 1st February 2007. Albert intended to go to the University and got on Jack’s taxi and told Jack to take him to the University. Upon arrival, Albert refused to pay Jack. He claimed that there was no contract between the two parties due to no consideration existed between them.In the following, we would analysis the Legal position under the Contract Law regarding the above situation and followed by relevant recommendations.Legal position under the Law of ContractFirst, we will look into whether there is a valid contract between Jack and Albert.Jack is a taxi driver and he is stationed at the Toowoomba Railway Station for picking up passenger at the material time. As Jack and Albert do not know each other, and Albert did not make any appointment with Jack prior to the ride for taking him to the University for free. It was no doubt that Jack is doing business in which he drive passenger to their request destination in exchange for a certain sum of money (the taxi fare).To create a contract, there are 4 essential elements which are Intention, Offer, Acceptance and Consideration:-IntentionIt means that there must be an intention to create legal relations between both parties. For identifying the intention, we need to look into the inferences would a reasonable person would draw from the conduct of the parties. If a reasonable person would assume that there was no intention by the parties to be bound, then there is no contract.Court would normally define 3 types of agreement that both parties are not intended to create legal relations. They are Social Agreements, Domestic Agreements and Voluntary Agreements (Stone 1995).In Jack and Albert’s case, they did not know each other and there was no prior voluntary agreement made between both parties. Besides, it was understood for a reasonable person that we would pay the taxi fare to the driver for a ride to our requested destination. We consideration intention is established between Jack and Albert in such situation.OfferAn offer is an expression of willingness to contract on certain terms made with the intention that a binding agreement will exist once the offer is accepted (Tay 2000).Since Jack is a taxi driver and he is waiting passenger at the Railway Station without prior appointment with Albert, his intention of making an offer to all the people in the Railway Station who would like to take a taxi to somewhere and pay the taxi fare to Jack in return is established.AcceptanceAn acceptance converts the promise of promises of the offeror into an agreement. After acceptance, both parties are bound to the agreement. The acceptance contains a willingness to take exactly what is offered and an agreement to pay as required (Tay 2000).Albert was intended to go to the University at the material time. Albert’s intention to accept Jack’s offer is established by...

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