Law Of Codelfa Construction Pty Ltd Samples †MyAssignmenthelp.com

Question: Discuss about the Law Of Codelfa Construction Pty Ltd. Answer: Issue: The issue to be considered in this case study is whether a contract had been formed between the friends, and if so what were the terms of such contract. Rule: It is to be stated that verbal agreements can be legally binding upon the parties. However the courts assess whether such oral contract had the essential elements of a contract. The essential elements for the formation of contacts as held in the case Court of Queen's Bench [1871] LR 6 QB 597 are: Offer and Acceptance The terms must be agreed upon by the parties Intention to create legal relations The terms of an agreement can be express as well as implied. Express term is those that are clearly express at the time of contract formation. Whereas implied terms are those which are assessed by the court to exist in the contract and without the presence of which the contract would have no meaning as held in the case Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 Application In this case it can be stated that all the members of the group had contributed 2 dollars for the purpose of buying a syndicate lottery ticket. Therefore a verbal contract was formed between them. It can be stated that there was an implied term present in the contract. It is obvious that the contribution of money by every member of the group was in view of sharing the prize money. Conclusion Thus in conclusion it can be stated that an oral contract was formed between the parties and an implied term of sharing the prize money was present in the contract.