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Elvis had a birthday party at his home, in Katoomba, New South Wales. One of his guests, Jennifer, is a florist. Elvis has 3 large vases that he would like filled with a variety of Australian wildflowers. He asks Jennifer if she can help him by getting flowers for his large vases. Jennifer is new to town and trying to build business relationships so she is eager to help. Jennifer agrees to help Elvis the first thing the next day. They do not discuss fees. Jennifer arrived at 8am the next day and she filled up the first vase with flowers. Then Elvis arranged them. They looked great. Jennifer was impressed at his flair with colours and arranging flowers. Jennifer didn’t have enough flowers for 2 more vases. She left and promised to return the next day. Overnight, Jennifer emailed Elvis and said that the fee for filling the vases would be $150 per vase. Elvis emailed her back with "No worries - see you tomorrow." Jennifer returned with more flowers and completed filling the other two vases with flowers. The following day, Jennifer sent Elvis an invoice for $450: Made up of $150 for each bunch of flowers for each of the 3 vases. Elvis seeks your advice on the legal issues.

a) Briefly explain what a contract is and how a contract is formed.

b) When was the contract formed between Elvis and Jennifer?

c) What are the basic terms of the contract between Elvis and Jennifer?

d) How much is Elvis contractually obliged to pay Jennifer?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93135011

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