9:13 4G 67 Tutorial 6 Contract formation questions K Understanding Business Law, 8th edition by Stephen Graw, David Parker, Keturah Whitford, Elfriede Sangkuhl, Christina Do Scenario-based Problem Questions with Guided Responses for Lecturers Created by David Newlyn and updated by David Parker 2017 Reed International Books Australia Pty Limited trading as LexisNexis. Permission to download and make copies for classroom use is granted. Reproducing or distributing any material from this website for any other purpose requires written permission from the Publisher. Chapter 4: Contracts: Formation Setting the Scene Franco is an exchange student from Italy studying at a university in Australia. He bought a bicycle when he arrived so he could easily travel around the campus and to his accommodation. He met with Robert and agreed to sell his bicycle to him for $500 and to deliver it at the end of semester, but has since decided to extend his exchange for another semester: he now wants to keep his bicycle. Whether he can legally renege on the deal with Robert or not depends on whether a legally enforceable contract has been made. Discussion Questions for Chapter 4 1. (a) What elements need to be present to decide if there is a binding contract between Franco and Robert? (b) Identify exactly what conduct or actions would constitute each of the required elements in the agreement between Franco and Robert. 2. Is there a problem with any of the required formation elements in the agreement between Franco and Robert? If so, identify which element(s) may be a problem. 3. Would the agreement between Franco and Robert be classified as 'bilateral' or 'unilateral'? Explain you answer. E O