Question 1 (12 marks) (Contract formation)

The University of Goondiwindi owns an old three storey building on land that is next to the university campus. It entered into a 1-year agreement with the Big Bash Cricket Club to lease level 1 of the building in return for the club to provide wicket maintenance on the University's cricket ground located on the main campus. It also entered into a 1-year agreement to lease level two to the Candid Camera Club in return for the club carrying out a contract already entered into for teaching photography to disabled people. Shortly after entering these agreements the University received a substantial bequest and decided to build a new building on the site of the three-storey building. Advise the university whether it is contractually bound to the Big Bash Cricket Club and the Candid Camera Club. In your answer discuss each club separately and include relevant legal principles and cite authorities where applicable.