AlexJun 03, XXXXXXXXXX:04 AMmargaret own a antique store thatMargaret owned an antique store that...

Question

AlexJun 03, XXXXXXXXXX:04 AMmargaret own a antique store thatMargaret owned an antique store that specialised in rare porcelain dolls.When she opened the business in 1989, it was at a shop in an easternsuburb of Melbourne. In 1999 she started to advertise on the Internet andby 2006 the business had grown to the point where she needed help tokeep the business going. After a family discussion one night at the kitchentable in July 2006, it was agreed that Margaret would probably keep thebusiness going for another couple of years and then retire. Emily, heryoungest daughter and aged 16, would work in the shop as long as wasneeded and in return, she would receive any unsold dolls. When Margaretretired at the end of 2009, she decided that she would give the unsoldstock to charity and they could auction it and keep the proceeds.Discuss.In your answer, include a discussion on “consideration”, and “promissoryestoppel”.

Robert · Accepted Answer

Case : 
 
Margaret own a antique store that Margaret owned an antique store that specialised in 
rare porcelain dolls. When she opened the business in 1989, it was at a shop in an 
eastern suburb of Melbourne. In 1999 she started to advertise on the Internet and by 
2006 the business had grown to the point where she needed help to keep the business 
going. After a family discussion one night at the kitchen table in July 2006, it was 
agreed that Margaret would probably keep the business going for another couple of 
years and then retire. Emily, her youngest daughter and aged 16, would work in the 
shop as long as was needed and in return, she would receive any unsold dolls. When 
Margaret retired at the end of 2009, she decided that she would give the unsold stock to 
charity and they could auction it and keep the proceeds. Discuss. 
 
 
Solution:  
 
One of the important elements of a valid contract is Consideration. The 
consideration can be in any form, it does not necessarily be monetary, and it 
could be of a promise or conduct.
The common law requires that promisor must have paid some consideration for 
an agreement to be binding.
Sometime lack of element of consideration in any agreement gives one party an 
advantage to break the promise and other part suffers due to this.
In the given case also, Emily is left helpless due to lack of consideration in 
agreement with Margaret. She has worked in her shop relying on the promise 
made by Margaret to give her unsold dolls to her.
To protect the promisee and prevent promisor to withdraw from the promise, 
causing sufferings to promisee, the Doctrine of Promissory Estoppel was 
developed. The doctrine has its origin in the case of Central London Property 
Trust l v High Tree House Limited (1947) . In this case, Denning J established 
a “shield” for defendant against the plaintiff who is breaking the promise. The 
element required to apply this doctrine was to show:

AlexJun 03, XXXXXXXXXX:04 AM margaret own a antique store that Margaret owned an antique store that specialised in rare porcelain dolls. When she opened the business in 1989, it was at a shop in an...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment