Australian Contract Law - Essay Example

?Australian Contract law Australian Contract law A contract is an agreement signed between two or more parties and that is legally enforceable. A contract can be said to arise when a certain group makes an offer and in response, the other group makes a notification to accept it. Legal signing is made by both parties to show that an agreement has been made while any withdrawal would only occur with the involvement of the two parties (Gillies, 1988). A contract can be made orally or be in writing and can be entered into through different ways. Such ways of making a contract can be; signing a document, clicking ‘agree’ button on the web as well as making an agreement over the phone. Contract law constitutes any regulations or laws directed inline of enforcing certain promises. The contract law in Australia is mainly regulated by the common law. However, more states are supplementing the common law of contract specifically in connection with the consumer protection (Goldring, 1998). What makes a valid enforceable contract between parties? A contract is considered valid if there is the provision of a written or signed agreement by both parties. It has been stated that the two companies entered into a written service contract which meant that, the Big industry decided to make an offer to Pat while on the other side, Pat accepted the offer and anticipated to arrive at a significant work from Big industry in future. The enforcement is valid due to the way that is has been laid down in a written document. The contract agreement had involved both parties which must have signed a document to establish an offer from one side and at the same time an acceptance of the other party. There is therefore a valid enforceable contract between Pat and Big Industry. Pat, a computer software consultant was expected to write four computer programs which were made to be used by the Big Industry in controlling its automated manufacturing machines. More terms within the contract agreement was that the Big industry was supposed to pay twenty five thousand dollars to Pat on completion of the work. Payments would only be made after the completion of the work on contract. Another term provided within the contract was that the written computer programs be delivered to the Big industry no later than may first. The contract agreement did not seem to provide any chance for delivery after the agreed date, the first day of May. No modifications of the contract would be valid unless it was in writing and signed by both the Big industry and Pat. The April fifteen phone call between Pat and Hillary brought in much effect on the contract terms. According to the contract agreement made on first April, Pat accepted to write the total number of the computer programs and gave much expectation for the Big Industry that before the first day of May, all programs would be ready for use. The phone call was meant to make a change in the agreement that Pat would not deliver the contract as it was agreed on April first. Pat said that he was having a problem with the programs three and one and that he would not be able to deliver them until at least eight may or may be sometimes closer to fifteenth of May. Pat went ahead to mention that he had some doubts that he would be able to write program number four at all since the Big Industry’s computer hardware was nearly obsolete. He communicated that he would only deliver program number one and two by the first day of May. This phone call demonstrated that change would occur in the terms agreed as per the contract. The contract terms were that Pat would write four programs by May first and that the total payment would only be made after the delivery. Pat on the phone call notified that he would only deliver two written programs and that one would come late while the other one would not be written at all. The change in the content of delivery meant that all terms and conditions of the contract would as well change. The Big Industry would as well adjust its payments and expectations for the four programs. This was going centrally to the agreement that was made initially by the two parties (Goldring, 1998). Can the tender prevail a legal action for the breach of contract? According to the contract agreement, it was put across that the complete and entire contract between the parties would receive no modifications unless it is in writing and signed by both parties. Otherwise it would be invalid. On the communication made by Pat on the phone call, Pat pointed out that he doubted whether he would be able to write program number four. It is very evident that Pat did not withdraw from writing program four but only had a doubt whether it would be possible. Hillary pointed out that the industry would live with the contract if Pat could not at all deliver the contract by fifteenth May. No agreements were made that Pat had quitted the contract. Just like it was signed by the two parties on a written document, the two parties would have signed the same document to show withdrawal from the contract (Carter, 2010). Hillary pronounced that the industry would leave with the contract if Pat could not write the four programs by the fifteenth of May. However, Hillary did not arrive at any agreement with Pat the he should stop working on the same. Since Pat had delivered the contract on the twelfth day of May, the due date according to the Big Industry was yet to go. Up to the fifteenth day of May, Pat held the responsibility of writing the four programs for the Big Industry. Having delivered as per the agreement, the Big Industry was subject to meeting the payment agreements with Pat. The Big Industry’s withdrawal from the contract agreement would only have been made possible through signing similar documents as they had signed during the contract offering (Taylor & Taylor, 2007). Pat can therefore prevail a legal action if the Big Industry fails to make payments on the work done by Pat. On the other side, Big Industry can as well rely on some defences in case Pat prevailed in a legal action. According to the agreements made at the beginning, Pat had signed the agreement that he would write the total number of programs before the end of the time provided by the Big Industry. Before any signatures are laid down in a document, the two parties can only do that after they have read and understood all terms and conditions associated with the contract. Big industry can defend itself by pointing out that the terms and conditions signed upon by the two parties did not provide any chance of delivering the contract after the specified date. Pat would have read and understood the terms and conditions provided and in that case adhere to them. If any legal action was prevailed with respect to going centrally into the agreement, Pat would first of all be subject to the consequences that would follow. Big Industry has still some defences against the prevalence by Pat that, the contract agreement did not provide for the delivery of the contract by twelfth May. The due date for the submission of the written programs was made to be the first day of May. Although Pat had written the four programs by twelfth May, the official due date for submission according to the signed contract was May first. Therefore, the submission of the complete written programs on twelfth May by Pat did not meet the agreements as per the contract (Carter, 2010). What remedies can parties rely on contract law? Contracts are promises that are enforced by the law. Certain remedies are provided by the law if a promise is breached. The promise of performance is therefore considered as a duty by the law. For a contract to remain legally binding, promises must be exchanged by both parties for adequate consideration. Pan and the Big Industry can rely on the prose remedy which enforces the contract and lays down a duty of performance. They can as well rely on the compensation remedy whereby each party has some compensation to make towards the other. Since neither of the two parties had met the exact agreements written on the contract, there are minimal chances for each side that they would prevail a legal action of either party but rather make relevant compensations for each other. Performance remedy can as well be applied whereby Pat can force the Big Industry to make payments accordingly as per their agreements. An attorney that has specialized in contract law can give assistance to either of the two parties so that they can arrive at the best direction for the breach of contract dispute (Taylor & Taylor, 2007). Reformation is another remedy that can be applicable in the case of Pat and the Big Industry. This remedy is used when the parties have imperfectly laid down agreements in writing. Agreements were initially written on a certain document but later on the fifteenth of April, the agreements were changed through the phone. The court can therefore allow into evidence the specific terms on the phone call and thereby reform the written contract. The parties can therefore rely on such remedies in contract law. References Carter, J. W. (2010). Carter's guide to Australian contract law. Chatswood, N.S.W: LexisNexis Butterworths. Carter, J. W. (2012). Cases and materials on contract law in Australia. Chatswood, N.S.W: LexisNexis Butterworths. Gillies, P. (1988). Concise contract law. Sydney: Federation Press. Goldring, J. (1998). Consumer protection law. Leichhardt, N.S.W: Federation Press. Taylor, R., & Taylor, D. (2007). Contract law: Directions. Oxford [u.a.: Oxford University Press. Tomasic, R., Bottomley, S., & McQueen, R. (2002). Corporations law in Australia. Sydney: Federation Press. Read More