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"How to explain there was agreement and consideration for a valid contract?

"How to explain there was agreement and consideration for a valid contract?"


virat was interested in buying a cafe business in Sydney. He visited one cafe called 'Best Espresso' and spoke to the owner(Lucky) who showed him around the cafe and kitchen area where the chefs made coffee and prepared light meals. Virat could see the potential in this business and he counted 6 tables outside the cafe with enough seating for 24 customers and seven tables on the inside with seating for 30 customers. The cafe also displayed a colorful sign outside showing the café's name and businesses logo which impressed Virat. He decided to purchase the business after consulting his accountant who thought it would be profitable.

It was the middle of summer and most days the temperature was around 34 degrees. After Virat's first full month of operations, he was making a nice profit. This followed his introduction of iced-coffees and fresh-fruit 'smoothies' to the drinks menu. The following month, however, Virat received a letter from the Local Government informing him that he had to remove the outside tables as his cafe never had permission for these. The loss of 24 seats meant he would lose a significant percentage of his trade and even kill off his business

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7 comments
  • I am little bit confused about whos is trying to prove that its a valid contract and what cases might be referenced for Agreement and consideration. MAny thanks
    • ahasnat57
    • Apr 04, 2018 at 4:40am
  • Hi, thank you for the clarification. In this question we are trying to check whether Lucky used a fraudulent misrepresentation in the agreement. We know that Virat chose to purchase the café because of the outside tables. However, Virat received a letter from the Local Government informing him that he had to remove the outside tables as his cafe never had permission for these. This means the agreement was invalid since Lucky lied about the outside space. For this reason, we can use fraudulent misrepresentation to consider the agreement invalid.
    • Expert-tips
    • Apr 04, 2018 at 4:51am
  • I have referenced Redgrave v Hurd (1881) case
    • Expert-tips
    • Apr 04, 2018 at 4:51am
  • thanks. can u plz give me more idea about enforceable
    • ahasnat57
    • Apr 04, 2018 at 6:09am
  • By being enforceable it means a contract should have all the essential elements of a contract. You can conduct more research on the essential elements of a contract , look at the fraudulent misrepresentation and find more case studies on the same
    • Expert-tips
    • Apr 04, 2018 at 6:13am
  • Another case law is Bisset v Wilkinson [1927] AC 177, where The plaintiff purchased from the defendant two blocks of land for the purpose of sheep farming. During negotiations the defendant said that if the place was worked properly, it would carry 2,000 sheep. The plaintiff bought the place believing that it would carry 2,000 sheep. Both parties were aware that the defendant had not carried on sheep-farming on the land
    • Expert-tips
    • Apr 04, 2018 at 6:17am
  • thanks. can u plz give me idea about difference between void and voidable
    • ahasnat57
    • Apr 04, 2018 at 6:26am

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