Case study
Isabella loves to collect film and television memorabilia. She has assembled a large number
of interesting items including a collection of original images and replica costumes from the
1960’s and beyond. Isabella is a teacher at a Perth High School. She has saved enough
money over the past year for a trip to Europe where she hopes to visit the London Weekend
Television Studios in the U.K and the CineCitta film studio in Rome, Italy. She plans to
purchase more memorabilia whilst on holiday and go on speciality tours of film and
television series sets. On Monday morning she telephones her sister, Siena who runs a
travel agency that specialises in themed tourism called UberTour Pty Ltd in order to
organise the trip including flights and accommodation. Siena sends the following email to
Isabella at 11am Monday:
Dear Isabella,
UberTour can supply airline tickets to the United Kingdom and Italy and
accommodation in London and Rome which will allow you to attend a number of
locations of interest and also have the opportunity to buy merchandise in addition to
general shopping and sightseeing. You will arrive on Friday the 22nd of September
and remain in the United Kingdom and Europe for a three week period. The price is
$9700. If this is suitable please confirm by email before 12noon Wednesday as flights
and accommodation are becoming scarce.
Kind regards
Siena
6
Isabella sends an email to Siena at 1130am Wednesday thanking her and confirming
that she will take the tickets and accommodation. She also books two other tours
online. One is a tour of ‘London by Horse and Carriage’ including a visit to the Tate
Modern Art Gallery and the London Eye along with a tour of Historic Rome including a
meal on the famous Via Veneto which was a street setting utilised in one of her
favourite films of the 1960’s. What Isabella doesn’t know, however, is that Siena is
having a long standing argument with her internet provider, Bodo Telecommunications
who withdrew services on Tuesday afternoon and will not provide internet access until
she pays her overdue account.
As a result, Siena did not see Isabella’s email on Wednesday morning. Siena paid the
overdue account a few days later and read the email as soon as her service was
reconnected on Friday evening. Unfortunately, she can now no longer provide the
package at the quoted price of $9700 for the original dates. She advises Isabella who
is by now extremely upset and disappointed as she paid for the two city tours by credit
card and they cannot be rescheduled. Moreover, she had also expected to take
advantage of school holidays which is a convenient time for her to go overseas and
had organised accommodation for her dog, Nikki in a kennel for the period of her
absence. Siena can, however, provide another similar package for Isabella in August
next year for the discounted price of $10900. Siena says this is a good price as they
are family.
Question:
1. Using the 4 step process, consider whether the element of agreement required for
the formation of a legally enforceable contract has been satisfied in the above
scenario involving Isabella and Siena.
and
2. Using the 4 step process, also consider whether the remaining formation elements of
intention and consideration have been satisfied in the above scenario.