answer this essay using IRAC questions 700 words and based on NSW law and providing wsu referencing and put the rules into the essay as well, don’t put after conclusion.
Question Two: Contracts – 26 marks
Scarlett decides to sell her yellow Toyota Corolla 2010 model for $3000. She also owns a blue 2015 Toyota Corolla which is worth $18,000.
Scarlett and her cat Terry love to go for drives and sit together in the car, look at the sea whilst eating fish and chips. The beach is about 15 minutes from their home. They always take the blue Corolla when they go on these adventures.
On Saturday, 5 August 2023 they head off together for their usual outing. They arrive at the beach and Scarlett parks the car and Terry stays in the car looking at the waves.
Scarlett heads into the Fish and Chip shop to order their lunch. She sees her friend Vangelis and tells him that she is selling her Toyota Corolla for $3000. He says, “are you making me an offer?”. She replies “yes”.
Vangelis is thinking what a bargain this is and exclaims “I accept. I will come on Monday afternoon and collect the car and bring the cash.” They agree.
Whilst Scarlett is buying lunch Terry presses the window button and it opens. She leaps out of the car and goes exploring. Scarlett comes back to the car with the lunch and Terry is missing. She is frantic. She spends an hour looking for Terry but cannot find her. She calls her good friend Maria who then prints 50 posters with a photo of Terry (Scarlett sends her a photo of Terry every day).
Maria drives to the beach and they put the “Missing cat” posters on lots of poles and shop windows (refer to the poster on the right).
Meanwhile Terry has decided to walk home. It is
getting dark on the Saturday evening and Terry is
cold and a young lady named Jaya sees Terry and
offers her a warm meal and a place to sleep in front of the fire. Terry stays 2 days. She realises Terry has a collar with a phone number on it.
On Monday morning (7 August) Jaya rings the phone number and Scarlett answers. Jaya explains that Terry is with her. They arrange for Jaya to drive Terry over to Scarlett’s home later that day.
On Monday afternoon Scarlett is at home and Jaya arrives with Terry. She thanks her profusely. Scarlett is about to get her wallet to give Jaya the reward but realises Jaya knows nothing about the reward. She does not pay her but gives her a box of chocolates as a thank you and Jaya departs.
Vangelis arrives and Scarlett remembers she is selling the car to him. She gets the keys to the yellow Corolla and hands them to him for a test drive. He walks to the blue Corolla and yells out “hey Scarlett, the key won’t unlock the door”. Maria answers “you are buying the yellow Corolla”. Vangelis says “no, we agreed that I am buying the blue one”. Vangelis hands Scarlett the key and leaves very upset.
On Monday evening Jaya is walking along the beach when she sees a poster for the missing cat “Terry” she rescued and fed. She notices the reward of $750. She immediately rings Scarlett who refuses to pay.
Scarlett comes to see you for legal advice as to whether she has a contract with either Jaya or with Vangelis.
Students MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer. Based on NSW law and providing wsu referencing and in text citation.
In this scenario, Scarlett faces a legal question concerning contracts with two parties, Jaya and Vangelis. The primary issue is whether Scarlett has valid contracts with either of them under New South Wales (NSW) law. To address this issue, we will apply the IRAC method, which involves identifying the Issue, stating the relevant Rules, applying the Rules to the facts, and drawing a Conclusion.
Issue: The central issue is whether Scarlett has valid contracts with Jaya and Vangelis, given the circumstances surrounding the sale of her yellow Toyota Corolla and the reward for the return of her cat Terry.
Rules:
Offer and Acceptance: Under NSW law, a valid contract requires an offer and acceptance. An offer is a clear and unequivocal expression of willingness to be bound by certain terms, and acceptance must mirror the offer.
Consideration: Consideration is a fundamental element of a contract, implying that both parties must provide something of value in exchange for the contract to be valid.
Intention to Create Legal Relations: Parties must intend for their agreement to create legally binding obligations. Social or domestic agreements usually lack this intent.
Promissory Estoppel: If a promisee relies on a promise to their detriment and the promisor should reasonably expect such reliance, the promise may be binding under the doctrine of promissory estoppel.
Regarding the contract with Vangelis for the sale of the yellow Toyota Corolla, the key elements of offer and acceptance are present. Scarlett made a clear offer to sell her yellow Corolla for $3000, and Vangelis accepted this offer by stating, “I accept. I will come on Monday afternoon and collect the car and bring the cash.” This demonstrates a mutual understanding of the terms, creating a binding contract.
However, Vangelis later claimed that he believed he was purchasing the blue Corolla. In this situation, Scarlett’s offer was specifically for the yellow Corolla, and Maria’s clarification reinforced this fact. Therefore, Vangelis does not have a valid claim to the blue Corolla, and Scarlett is not obligated to sell it to him.
Contract with Jaya
The contract with Jaya is more complex. Scarlett had lost her cat Terry, and Jaya offered her a warm meal and shelter, creating an implied agreement. However, the crucial question is whether this constitutes a legally binding contract.
In general, agreements of a social or domestic nature, such as offering assistance to find a lost pet, do not create legal obligations. However, Scarlett should consider the doctrine of promissory estoppel. Jaya offered assistance to Scarlett in her time of need, and Scarlett may have reasonably relied on this promise when she began searching for her cat and printing posters. If Scarlett can prove that she relied on Jaya’s promise to her detriment (e.g., printing posters), she may have a legal claim under promissory estoppel.
Additionally, the $750 reward for Terry’s return adds a layer of complexity. While Scarlett may have advertised the reward, it is unclear whether she intended it to be a unilateral contract, wherein a reward is offered for the return of the cat. If the reward was a unilateral contract, Jaya could argue that she fulfilled the conditions by returning Terry and is entitled to the reward.
Conclusion
In conclusion, Scalett has a valid contract with Vangelis for the sale of the yellow Toyota Corolla, and she is not obligated to sell him the blue Corolla. The contract with Jaya is more ambiguous, as it involves social and domestic arrangements. However, Scarlett should consider the doctrine of promissory estoppel, and the issue of the reward may also impact the outcome. Further analysis and evidence may be needed to determine the nature and enforceability of the contract with Jaya and the reward.
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