Posted: January 1st, 2016

Assume that the element of agreement required for the formation of a valid contract exists. Using the four-step process, discuss whether the other elements required for an enforceable contract are present. Can Gabriel enforce the contract against Phillip?

Gabriel was busy and he saw the email around 11am. Gabriel reads through the email and is pleased with the terms of the agreement. He needed to deal with an important client and once he finished he then drafts an email of acceptance of the terms of the offer, however there just as Gabriel is happy with the response and he is ready to press the send button, the electricity has been turned off due to a fire in the lower floors making it impossible for Gabriel to send the email to Phillip. Gabriel is concerned and he tries to call Phillip but there is no answer and there is no option to leave a message. In the meantime Gabriel is thinking of ways in which he can accept. So as a last resort, Gabriel drafts a letter to Phillip stating that he accepts the offer proposed. He also includes a strategic map for the project and he posts them at 4pm on Wednesday afternoon.

At the board meeting on Friday morning Alex shows Phillip the quote he received from an award winning Web Design Company offering to do the job for $35,000. At this point Phillip realises that he has offered Gabriel $15,000 more and he doesn’t want to engage Gabriel’s services anymore.

So he goes back to his office and he sends an email to Gabriel stating that as he did not receive his acceptance by 5pm on Wednesday that he has now missed out on the work. Phillip also states in his email that ne never meant for the project to be real anyway because he was only trying to help out his friend Johnny as Johnny asked him to give you some work. Gabriel is furious upon receiving the email from Phillip and he seeks advice from a lawyer on this matter.