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Australian Catholic University

Australian Catholic University
  • Faculty of Arts and Sciences
  • Institute of Legal Studies
  • 099 - ACCOUNTS

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Introduction Roger ("R") would like to know his legal position over whether Magic Pty ltd ("M") is legally able to demand payment of eight months of back rent totalling $8000 for the eight month period that the rent was reduced. `R's position relies on whether the statement made by the manager of `M' is legally binding. The second issue is whether the promise of a reduced rent gives rise to promissory estoppel. `M's statements In order for `R' to be not liable for this back payment, it must be determined that the statements made in the letter eight months ago by the manager of `M' is a legally binding contract. For a written or oral contract to be legally binding, it must contain the elements of an intention to be legally bound, offer, acceptance and consideration. Legality, genuine consent and legal capacity are essential elements of contracts but are not the main issues in this instanc...


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