Case Study 1 - M/s Jones and the Cake Overview

Case 1 - M/s Jones and the Cake

Facts: M/s Jones rings her baker and orders a cake for a birthday party she is having that evening. The baker promises to deliver the birthday cake at approximately 5 pm. As agreed, she immediately pays a deposit of $40 on the agreed price of $80 using her credit card.

Later that day, the baker became ill and saw his doctor. Shortly after he called Mrs Jones to let her know that he is now unable to bake the cake and that she should find another baker. He does not mention returning the $40 deposit paid.

Issue 1(a): Stephen Graw "An Introduction to the Law of Contract" 10^th edition 2021 says there is little formality in asimple contract which may be written, it may be partly written and partly oral, it may be wholly oral or it may be implied from the parties' actions.

Question 1(a) What is the type of contract that applies to the facts here? Give your reasoning. Your answer should be approximately 100 words.

Question 1(b) Apply the six (6) elements of a contract to the facts in Case 1. Your answer should be approximately 130 to 180 words.

Question 1(c) DEFINE and EXPLAIN the type of discharge of contract which applies to the facts in Case 1 and RESEARCH at least one (1) decided case to support your opinion. Your answer should be approximately 140 to 190 words in length. You MUST reference your sources.

Question 1(d) Advise whether Mrs Jones is entitled to a refund of the deposit paid. Explain your answer. Consider her remedy (if any) under statute and pursuant to contract law principles in your State or Territory. Your answer should be approximately 150 to 200 words and referenced.

Note: the Workbook refers to repealed Frustrated Contracts Acts for 3 States, but the current frustrated contract provisions for 3 the states are contained in Part 3.2 of the Australian Consumer Law and Fair Trading Act 2012 (Vic), NSW - Frustrated Contracts Act 1978 (NSW) and in South Australia (Frustrated Contracts Act 1988 (SA).