Scenario 1: Business venture

Tom and Jerry are two very close brothers who have recently entered into a contract, whereby they jointly own TJ & Partners, a brand-new tech firm in Melbourne, Australia. Over the years they have had no major arguments or disputes, however this new business venture has put their relationship to the limit. Multiple employees are concerned about their yelling and the hostile environment that is being caused by Tom and Jerry's relentless arguing.

After a number of complaints, Jerry decides that he is fed up with Tom and decides he wants to walk out of the business. Tom and Jerry sit down for another meeting so Jerry can discuss his exit plan. The meeting goes poorly, and Jerry leaves yelling "I own 50% of this company, if you want this company to continue, you must buy me out!"

Tom is left angry and confused. Reluctant to buy out his brother, he decides to consult his lawyer on whether he has to pay Jerry. The lawyer suggests that there may not be a valid contract at all.

Task: You are Tom's lawyer. Using principles of Contract Law advise Tom whether a valid contract between Tom and Jerry has been properly formed. In doing so, please rely upon case law.