Question 2 [from Week 2, 11 marks]

Emily is 18 years old and has just graduated with a bachelor's in marketing degree from a well-known university. Even though she has not worked in a marketing job before and has no experience in a marketing role, she decides to apply as a part-time graduate assistant for Fido House, which is a charity dedicated to finding homes for abandoned dogs. Fido House agrees to pay Emily a nominal allowance of $1,000 a month, in view of her junior role and her lack of relevant job experience. Even though the salary is quite low, Emily decides to accept the job offer because she wants to work in a marketing role.

Soon after, some of Fido House's major donors do not contribute their normal donations in the new financial year. This results in significantly lower funding for the company. Emily's manager tells her that her role has been dissolved and her services are no longer needed. Fido House owes Emily about $2,000 in back pay. When Emily asks for payment, the company says they do not owe her any money because Emily was not an employee. They were only giving her work experience. Besides, they didn't sign a written contract, Fido House is a charity, and so it is not liable to Emily.

Does Emily have any rights to claim her back pay under contract law? Please explain your answer with reference to the essential elements for the creation of a valid simple contract. (Maximum 300 words)