important ~

According to Common Law System, Contract is made from agreement, intention and consideration. Agreement itself is resulted from offer and acceptance which imposes legal rights and obligations between the parties in which the rights and the obligation will be protected by the courts, whileintention itself comes from the parties that has to affect their legal relationship and consideration itself will be enforced to the parties as a legal binding. (Vermeesch and Lindgren, Business Law of Australia 10^th Ed., Butterworths, Australia, 2001. p.47)

Carlill v. Carbolic Smoke Ball Company [1893] showed the facts that there was:

‘  An offer

There are three facts that show an offer:

• Lindley, L.J. stated that this is advertisement is an offer to pay 100 to anybody who will perform these conditions is the acceptance of the offer.
• Bowen L.J. argued that the advertisement is written colloquial and popular language that means it is easy to public understandably. The advertisement stated that 100 will be paid to any person who shall contract the increasing epidemic after having used the carbolic smoke ball three times daily for two weeks.
• This offer was purposed to whole the world including person.

‘  Acceptance

There are two facts that show acceptance:

1. Bowen, L.J. revealed that notification of acceptance is required for the benefit of the person who makes the offer because:

• Offeror may walve implicitly the right of notification.
• Acceptance is directed expressly pr impliedly to the offeror.

1. Lindley stated that:

• Acceptance by conduct is the performance of the conditions of the offeror.
• The person who makes the offer shows by his language and from the nature of the transaction that he does not expect and does not require notice of the acceptance apart from notice the performance.

‘  Intention to be legally bound

There are two facts that show intention to legally bound:

1. Lindley, L.J. stated that the company already has deposited its money 1000 to the Alliance Bank in order to convince the public or as evidence to the public that they will be paid if they get these conditions or in other word, the company has shew its sincerity to pay it.
2. Bowen, L.J. stated that the advertisement uses clear language that anybody who get these condition such as cold or influenza after purchasing and using it will be paid 100.

‘  Consideration

In terms of consideration, in this case it can be found some consideration:

v  Lindley, L.J. argued that the consideration could be drawn:

ñ  Directly beneficial to defendant such as: the increasing in sales production that caused by the confidence of the public to use this product.

ñ  There is ample consideration for the promise.

v  Bowen, L.J. stated that the inconvenience of one party by using the smoking ball was enough to create a consideration and also the defendant received an indirectly benefit from this user because of promoting their sale.

Constitution

The distinctive of the Australia federal system:

v  The 3 arms of Australia government are segregated into three arms; Executive, Legislature and Judicature.

v  There is powers distribution from central government to state governments (6 states) and both of them have parallel systems of government in which the states get the rest of power to express and residual powers from the Federal government.

v   The Australian federal system is a constitutional monarchy because until now the Australia’s head of state is still Queen Elizabeth II that embodied by governor-general as her representative (s.61 constitution).