File No. 1Background of the caseJack is a taxi driver and was stationed at the Toowoomba Railway Station for picking up passenger on 1st February 2007. Albert intended to go to the University and got on JackÃÂs taxi and told Jack to take him to the University. Upon arrival, Albert refused to pay Jack. He claimed that there was no contract between the two parties due to no consideration existed between them.
In the following, we would analysis the Legal position under the Contract Law regarding the above situation and followed by relevant recommendations.
Legal position under the Law of ContractFirst, we will look into whether there is a valid contract between Jack and Albert.
Jack is a taxi driver and he is stationed at the Toowoomba Railway Station for picking up passenger at the material time. As Jack and Albert do not know each other, and Albert did not make any appointment with Jack prior to the ride for taking him to the University for free.
It was no doubt that Jack is doing business in which he drive passenger to their request destination in exchange for a certain sum of money (the taxi fare).
To create a contract, there are 4 essential elements which are Intention, Offer, Acceptance and Consideration:-IntentionIt means that there must be an intention to create legal relations between both parties. For identifying the intention, we need to look into the inferences would a reasonable person would draw from the conduct of the parties. If a reasonable person would assume that there was no intention by the parties to be bound, then there is no contract.
Court would normally define 3 types of agreement that both parties are not intended to create legal relations. They are Social Agreements, Domestic Agreements and Voluntary Agreements (Stone 1995).