Contract Law Master Case Study

Case Study
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The major point of contention in this case is the content of the option clause (Clause 4) and whether its performance can be enforced through a decree of specific performance. In accordance with her rights under the contract, Hilary has validly exercised the option available to her under Clause 4.


This was also the case in Goedecke v Kirwan1where the Court found that an agreement on price was a necessary term of offer and acceptance; hence no final, enforceable contract existed since price had not been agreed upon. Thus Hilary may have some rights under the option, but they may not be fully enforceable.
In the case of Barack, he seeks re-possession of his flat. Under the option clause in the agreement, Barack may not have the automatic right to reposses the flat, when there is an option available to the lessee to continue. In the case of Butts v O'Dwyer2 a similar situation arose, where there was an option to purchase the lease property subject to fixing of a price by the third party. In this instance, the Court concluded that it could correctly be said that the complete was incomplete until the price was fixed. The existence of the option indicated that the owner had an obligation to do everything in his power to ensure that the price was fixed through the third party. This is applicable in Hillary's case, since Clauses 5(d) and 17(b) lay out the procedure for fixing of the price in the event an agreement cannot be reached between the parties. ...
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