1. List the six essential elements of a contract

2. State the presumptions that apply to domestic arrangements and business arrangements. How may these presumptions be rebutted?

3. Explain how an invitation to treat is different from an offer

4. Explain the statement: Consideration need not be adequate but it must be sufficient. Give examples where possible

Case Studies:

Case 1 - Intention A career diplomat was posted to Dublin as an Australian ambassador to Ireland. Her husband accompanied her but did not fit well into Irish Diplomatic circles. The husband returned to Australia, with the diplomat promising to pay him an agreed monthly allowance. After a few months, the diplomat stopped making payments. Her husband did not want to take divorce proceedings because of his religious beliefs but decided to sue to collect the amount unpaid.

Would the husband succeed in the action against his wife? Use a case to support your answer. Use the IRAC method to answer the question.

Case 2 - Agreement An advertisement in a national newspaper states that:

i) A new natural health drink can protect people from being infected with mumps and

ii) The manufacturer will pay $10 000 to anyone who is diagnosed with that illness provided they drink a bottle each day for at least one year.

John White buys the drink in response to the advertisement and drinks a bottle every day. Two years later he catches a severe case of mumps and is very ill for two weeks. Is the manufacturer legally obliged under contract law to pay $10 000 to John? Give reasons and support your answer with a relevant case. Use the IRAC method to answer the question.

Case 3 - Consideration Tom and Jerry lost several tame cockatoos from backyard of their home. Peter, a high school student found the cockatoos in a park and returned them to their owners. Tom and Jerry were so pleased they promised to reward the student with the $100 at the end of the month. Two weeks after the promised payment date, Peter had not been paid.

(a) Explain whether Peter is legally entitled to the $100

(b) Would your answer be different if Tom and Jerry had distributed posters offering a reward before Peter found the cockatoos? Why?