Contract Law Master Case Study Example | Topics and Well Written Essays - 3500 words

Contract Law Master - Case Study ExampleThis was also the grounds in Goedecke v Kirwan1where the Court found that an agreement on price was a necessary edge of offer and acceptance hence no final, enforceable contract existed since price had not been agreed upon. Thus Hilary may have some rights under the option, but they may not be fully enforceable.In the case of Barack, he seeks re-possession of his flat. Under the option clause in the agreement, Barack may not have the automatic right to reposses the flat, when there is an option available to the lessee to continue. In the case of Butts v ODwyer2 a similar situation arose, where there was an option to purchase the term of a contract property subject to fixing of a price by the third party. In this instance, the Court concluded that it could correctly be said that the complete was incomplete until the price was fixed. The existence of the option indicated that the owner had an obligation to do everything in his power to ensure t hat the price was fixed through the third party. This is applicable in Hillarys case, since Clauses 5(d) and 17(b) lay out the procedure for fixing of the price in the event an agreement cannot be reached between the parties. ... at Hillary seeks, it may nevertheless place an obligation upon Barack to take necessary steps to ensure that the incomplete term in the contract, i.e, the price is fixed.In the case of booker Industries Pty Ltd v Wilson Parking (Qld)Pty Ltd3 the situation was very similar to Hilary and Baracks case. In this case, the Court specifically stated that Booker (the lessor in this case) had no grounds for refusing to discharge its obligation to appoint an arbitrator merely on the grounds that the rental price was not fixed4. It clearly explained that when specific terms on the appointment of a third party have been set out in the original contract, then it no longer remains as a contingent obligation to be fulfilled first before the ultimate obligation, i.e, r e-renting the place can be completed. Since the existing option becomes operation on the day of expiry of the earlier lease, once it has been exercised, it is no longer a conditional or contingent obligation5. On this basis, the lessee was entitled to specific performance. Applying this precedent in Hillarys case, it appears that Booker may need to perform his obligation to appoint an arbitrator so the price can be fixed, after which the ultimate obligation, i.e, another lease term can also be accomplished.It must also be noted however, that Clause 4(b) states clearly that the option must be exercised no later on than 2 months prior to the expiration of the initial or previous term. In Hillarys case however, the option has been exercised after this period has expired, therefore there is a possibility that her right to exercise her option may no longer be valid, in which case Barack will not be obliged to perform his obligation to secure a rental price.Part BThe question of whether or not Huckabee has a