Can Francesca recover the remaining commission owing to her from Julie?
Whether Bill can claim any compensation from Julie?
Law for Issue 1
In contract, offer is the intention of the offeror which is communicated to an offeree to do or not to any act and he expects that his intention will be approved by an offeree (Carlill v Carbolic Smoke Ball Company , [1892] ). (Clark, 2010)
When the offeree to whom the offer is made gave his sanction then it is called acceptance and can be in the form of verbal or written or conduct form (Felthouse v Bindley, (1862) ). An acceptance must be the mirror image of the offer to make it valid. If the terms of the offer are varied while accepting the same then it is counter offer which cancels the offer so made (Harvey v Facey , [1893] ). However, if any query or information is sought then it is not an act of counter offer and the offer is still valid (Stevenson, Jacques & Co v McLean , (1880)). (Yule & Darwent, 2012)
The offeror and offeree must make promises with legal intention. Every agreement should be based with legal intent otherwise the agreement is not enforceable. Normally, it was held that parties who are sharing family or domestic relationship has no legal intention and the parties who share commercial relationship does have legal intention (Balfour v Balfour , [1919] ) & (Riches v Hogben , [1985] ). But, this basic rule is rebuttable by supporting evidence. (Graw, 2012)
The promises should also be exchanged along with consideration which makes the contract enforceable. Consideration is the benefit which is moved from the promisor in exchange of the act or omission undertaken by the offeree (HERCULES MOTORS PTY LTD v SCHUBERT , [1953]). It must be adequate and need not be sufficient in order to be valid. It is not necessary that the consideration must be paid there and then but must be validly decided amid the parties when the promises are exchanged (White v Bluett , (1853) ). The same can be provided in future but must be decided when the promises are made (Roscorla v Thomas, (1842) ). (Gibson & Fraser, 2013)
In Australian contract law, to make any valid contract, the desired parties must make offers which are accepted supported by legal intention and consideration. Thus, the main contract requirements are offer, acceptance, consideration an intention: (Clark, 2010)
An offer is made by offeror which is accepted by an offeree resulting in formation of agreement.
At times, no offers are made but with the help of auctions, advertisements, tenders, etc, offers are invited by the inviter. It is an act of invitation to treat and the people so interested in the invitation makes offer which should be accepted by the inviter resulting in contract formation (Pharmaceutical Society of Great Britain v Boots, [1953]).
Further, the parties are only bound by the terms of the contract and if any term is not found to be the contract term then no party can enforce anything which is not already agreed by the parties.
1.As per the facts, Francesca needs money and this looking for work. Julie (grandmother of Francesca) ask Francesca to help her in selling some of her old furniture. Against the help Julie is willing to pay Francesca a commission for every sale.
Thus, an offer is made by Julie to Francesca. The offer is valid as per (Carlill v Carbolic Smoke Ball Company , [1892] )
Against the offer, Francesca submitted that she is interested in the offer but wants to know the quantum of commission that is provided to her by Julie. Julie submitted that she will pay 20% of the sale price she receives.
It is submitted that as per (Harvey v Facey ) a query does not amount o counter offer.
Thus, the query by Francesca is not the counter offer and her consent to help Julie is a valid acceptance as per (Stevenson, Jacques & Co v McLean , (1880))
The offer and acceptance is supported by consideration, that is, Julie is paying 20% of the commission.
Further, when the offer and acceptance are made amid the parties, then, there is valid legal intention that is present even though the parties are in domestic relationship (Julie is the grandmother of Francesca). This is because Francesca is working for Julie because she is need of money and Julie is taking the help of Francesca because she wants to sell her furniture.
Thus as per (Balfour v Balfour , [1919] ), even though there is family relation, but, the parties have legal intention.
Thus, all contract elements are present and thus, there is a valid contract amid Francesca and Julie.
So, Julie can claim the commission on sale of $8000 and for the sale of piano.
2.It is submitted that in order to sold the old piano of Julie, Francesco has lowered the price and put a price tag, ‘Steinways Piano in mint condition $600 or nearest offer’.As per (Pharmaceutical Society of Great Britain v Boots, [1953]) articles with price tag are not offers and are invitation to sell. So, when Bill submitted that they intend to buy the piano @ $200, then it is an offer that is made by them to Francesco. This offer was not accepted by Francesco considering it to low. Bill has made a final offer @ $599 which is accepted by Francesco. So, the offer by Bill is validly accepted by Francesco. So, there is a binding contract amid the two considering the fact that they both have legal intention and are capable to contract.
Now, later when Bill came in his van to collect the piano and accidently breaks the same, this incident will have no impact on the contract that is established amid Francesco and Bill because merchantable quality was not the pre condition before the contract is established.
Thus, there is a valid contract amid Bill and Francesco
Conclusion
It is submitted that Francesca can claim commission from Julie because there is a valid contract amid the two.
Also, Bill cannot sue Francesco or Julie for the damage of the piano because there is a valid contract amid them and the piano was damaged after the formation of the contract, that is, when Bill has become the owner of the piano.
Balfour v Balfour , 2 KB 571 ([1919] ).
Carlill v Carbolic Smoke Ball Company (EWCA Civ 1 [1892] ).
Clark, E. (2010). Cyber Law in Australia. Kluwer Law International.
Felthouse v Bindley, EWHC CP J 35 ((1862) ).
Gibson, S., & Fraser, D. (2013). Business Law 2014. Pearson Higher Education AU.
Graw, S. (2012). An Introduction to the Law of Contract. Thomson Reuters (Professional) Australia Limited.
Harvey v Facey , UKPC 1 ([1893] ).
Harvey v Facey , UKPC 1 ([1893] ).
Harvey v Facey ([1893] UKPC 1).
HERCULES MOTORS PTY LTD v SCHUBERT ([1953]).
Pharmaceutical Society of Great Britain v Boots, 1 QB 401 ([1953]).
Riches v Hogben , 2 Qd.R 292 ([1985] ).
Roscorla v Thomas, 3 QB 234. ((1842) ).
Stevenson, Jacques & Co v McLean ((1880)).
White v Bluett , 23 LJ Ex 36 ((1853) ).
Yule, I., & Darwent, P. (2012). AQA AS Law Student Unit Guide New Edition: Unit 2 The Concept of Liability. Hachette UK.
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