Kate loves to shop, particularly for shoes and expensive clothes. Kate has worked really hard all year to save enough money so that she can take a trip to Sydney for Australian Fashion week.
Kate contacts her cousin Suzie who owns a travel agency called ValUtrav Pty Ltd to organise her trip, in particular an airline ticket to Sydney. After chatting about what they did on Saturday night, Suzie says to Kate:
“The travel agency can provide you with an airline ticket to Sydney for $1,000, arriving the day before Fashion Week starts and returning the day after it finishes, but you will need to confirm this in writing by 5pm tomorrow. You can send written confirmation of your acceptance by post, facsimile or email.”
Kate immediately sends an email confirming that she will take the ticket to Sydney for the dates and price stated by her cousin.
Kate then books a room at the best hotel in Sydney for the week. Unfortunately, unbeknown to Kate, Suzie was away sick for the next 3 days. This meant that the airline ticket to Sydney was not issued because Kate’s email to Suzie at the travel agency had not been read. When the oversight is discovered a few days later all of the quoted flights to Sydney are fully booked. Kate is very cross as she has already paid for the hotel. Suzie tells Kate that she is very sorry, but as they had not realised that the email had been sent within the time specified, there is nothing she can do about the tickets at the quoted price. As it is family, Suzie tells Kate that she is happy to provide another quote, however Kate will probably have to pay more and may have to have different flight times.
Question (a) 15 marks Using the four-step process, discuss the elements of intention and consideration required for the formation of a contract. In particular, consider whether these elements have been met in order for there to be an enforceable contract between Kate and the travel agency.
Question (b) 15 Marks Assume that the elements of intention and consideration required for the formation of a contract exist. Using the four-step process, discuss whether the element of agreement required for the formation of an enforceable contract can be established. Can Kate require the company to issue the airline ticket as originally stated?
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