Byrne and Frew vs. Australian Airlines

Download .pdf, .docx, .epub, .txt
Did you like this example?

CONTRACT LAW 1 Name: Professor: Course Code: Date of Submission: Paper Outline: Introduction………………………………………………………….3

  • What is contract law?
  • Macaulay and Macneil on contracts
  • Relational contract theory
  • Purpose of the paper

Case law of Byrne and Frew…………..……….………………………3 Concept of implied Terms and Relational Contracts…………………4 Relational Contracts and Byrne………………………………………..6 Conclusion………………………………………………………………..8

  • Summary of the points identified.

References………………………………………………………………..9 Introduction: Contracts refer to agreements creating obligations that are enforceable by law. The basic elements that constitute a contract are consideration, mutual assent, legality, and capacity (Barker, 2000). Macaulay and Macneil identify another perspective of contracts, by introducing relational contract theory (Macneil and Evanston, 2013). A relational contract is a type of contract that is built upon the relationship of trust between parties concerned. Under this theory, parties involved in a commercial contract are engaged in creating a long term relationship, affecting the manner in which they will associate with one another. This paper examines whether relational contract gives an adequate explanation on the reasons as to why the High Court did not imply terms when analyzing the case of Byrne and Frew against Australian airlines. This paper takes a stand that relational contract does not give an adequate explanation on why the court refused to imply the terms identified. The Case of Byrne and Frew: In the case of Bryne and Frew vs. Australian Airlines, the main issue that the court was to determine on the relationship between an individual employment contract, and an award from the industrial court. The two appellants were employed by the Australian airline company. They were dismissed on assertions that they interfered with luggages of the airline customers. This is after they were captured by the secret cameras, interfering with luggages. They sued the airline company for purposes of recovering damages, because of a statutory provision of clause 11 (a) which provided that the termination of an employment contract should not be unjust, unreasonable, or harsh (Gooley, Radan and Vickovich, 2007). Their main argument was that clause 11 (a) is an implied term in an employment contract, and on this basis, the company breached these terms by dismissing them through a harsh and unjust manner. In coming up with a judgment, the court denoted that terms can either be implied by law, or by fact. The court gave an opinion that the test of an implied term in a formal contract is established by the case of BP refinery vs. Hastings Shire Council (Ellinghaus, 2007). Terms that are implied by fact must pass the test of equitable and reasonableness, have a clear expression, obvious, consistent, and must pass the test of business efficacy. These terms did not pass the obvious test, and hence they cannot be implied. Implied Terms and Relational Contracts: An implied term refers to the legal provisions that are not directly identified by a spoken word,

Do you want to see the Full Version?

View full version

Having doubts about how to write your paper correctly?

Our editors will help you fix any mistakes and get an A+!

Get started
Leave your email and we will send a sample to you.
Thank you!

We will send an essay sample to you in 24 Hours. If you need help faster you can always use our custom writing service.

Get help with my paper
Sorry, but copying text is forbidden on this website. You can leave an email and we will send it to you.