To manage commercial and legal risk involved in business, entrepreneurs such as Jan need to recognise the legal obligations created by the common law of contract in forming and entering a legally enforceable contract and the available legal remedies if a term of the contract is breached. Another important skill for managers of a business is understanding how to validly exclude contractual liability. Your answer in Part B must answer both of the below questions.

1. Formation of contract

Even though Jan is English and enjoys cricket, she loves baseball and wants to help Australians learn how to hit a baseball. Jan has advised you that she will be selling a new and innovative product called Wonder Bat that teaches players how to hit home runs. The advertising strategy is to record a short advertisement that can be used on the stores website and on various social media platforms. Jan wants to state in the advertisement that if players use the Wonder Bat, then they will learn to hit home runs to the moon and will be able to hit more home runs than Babe Ruth.

In Part B of your report you must advise Jan whether a customer that views her proposed advertisement and then purchases the Wonder Bat but fails to hit home runs to the moon or more home runs than Babe Ruth can sue Reverse Swing Sporting Goods Pty Ltd for breach of contract. Your advice must focus only on whether the representations in an advertisement constitute an offer under the common law of contract. Your answer must be supported by legal principles and cases in the common law of contract. Do not discuss statute law.

500 words