Law Case Study

Fran runs a small business called Fran's Fine Treats, supplying gourmet chocolates to food stores and health spas. Recently her products have grown in popularity, and the business is growing significantly.

Fran decides to hire an assistant to help her with deliveries. She approaches her brother Marco, who owns a van. Marco was planning to take on a well-paying job opportunity in a nearby town, but he agrees to stay local instead, so that he can help Fran grow her business.

Marco is concerned about wear and tear on his van, and about insurance in case he is involved in a traffic accident while making deliveries. So he wants to make sure the arrangement with Fran is formalised. He gets the advice of a lawyer, who helps to draft an employment agreement setting out hours, rate of pay, reimbursement for fuel and maintenance costs, responsibility for vehicle insurance and various other details.

After both Fran and Marco have inspected the document prepared by the lawyer, and discussed all its contents, they both sign it and have their signatures witnessed. Two days later, Fran regrets her decision and wants to hire her niece Jane instead. She calls Marco to inform this decision stating that there agreement was just a domestic arrangement. Advise Marco of her legal position under the contract law, whether there exists a legally binding contract with Fran or not.

Question: Is Fran bound by the written agreement with Marco? In answering this question, you have to follow the following structure.

a) What is/are the issue/s you need to consider? (1mark)

b) What is/are the relevant legal rule/s relating to this problem? (1 mark)

c) What is/are the main case/s related to this problem? (1 mark)

d) Based on this information, Is Fran bound by the written agreement with Marco?

Explain your answer. (2 marks)