The current assignment is related to the Australian Consumer Law. The given case discusses around the contract that took place between Winnie, a fashion designer and Eva, an event planner. As per the given case, Winnie had to plan her wedding for which she entered into a contract with Eva. The contract between them concluded on 13th September 2015 and included a number of clauses which clearly defined the roles and responsibilities of Emerald Reef Hotel with respect to the big event of Winnie. In this contract between Eva and Winnie there were some hidden activities from both side like Winnie did not explain about the fashion show for her dress at her wedding to generate profit and Eva did not mention that the band suggested is her son. However, at the day of the wedding, nothing went well for Winnie as a tropical hurricane struck and nothing went the way it was planned. Winnie felt that she had the right to sue Eva for the damages that took place. In this regard, the relevant laws related to the formation of the contract, validity of the contract terms, the factors that vitiated the contract and the damages and remedies that are available to Winnie have been discussed in the current assignment. In addition, the consequences with respect to the breach of contract are also a part of this assignment.
A contract took place between Winnie and Eva according to which Eva was responsible for managing the wedding event of Winnie. Six clauses defining the role and responsibility of the Emerald Reef Hotel where the event was supposed to take place were a part of the contract. In addition to this, Eva also verbally told Winnie that at some occasions, tropical storms result in upsetting the events that take place at the Emerald Reef Hotel. Eva also recommended a band namely ‘The Trolls’ to Winnie. However, she did not tell Winnie that the members of the band were actually his son and his friends. Moreover, the Asian Finger Feast that was ordered by Winnie turned out to be frozen food sourced from a supermarket. Another issue that has been highlighted in the given case is that Winnie being a fashion designer had planned to showcase her new range wedding dresses at her wedding. Nevertheless, she never mentioned this to Eva. The contract details are followed as below.
The Australian Contract Law is inclusive of the formation of the contracts that take place between two or more parties1.A contract is a promise that legally binds the parties involved to follow the conditions that are a part of the contract. In this regard, the breach of contracts is likely to result in a number of negative consequences as per the agreed terms and conditions. The formation of contracts as per Contract Law is based on the agreement of the involved parties with respect to the clauses of the agreement. This agreement has no information about the hidden agenda by both the parties. Consideration is another essential element of the contract formation as per the Australian Contract Law. Apart from this, intention, capacity and formalities are important elements that are a part of the formation of contracts.
The primary discussion and clauses are considered as initial agreement between the parties. As held in the case of Smith V Hughes2, an agreement on the part of the both the parties resulted in the formation of a contract despite the differences in the intentions of the buyer and the seller. The different subjective intentions of Smith and Hughes were ignored by the court of law as it was held that a valid contract between both the parties existed.