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Skip to 0 minutes and 4 secondsNARRATOR: Two brothers are bouncing on a trampoline, and the older one asks the other one to go and fetch them some drinks of water. "OK," says the younger brother. "I'll get the drinks, if you pay me $1,000." The older brother says, "sure." Upon returning with the drinks, the younger brother demands his $1,000 for the completed contract. Can he enforce this? Did the brothers have a binding verbal contract? Sick Simone goes to see Dr. Denise. "If you give me $5,000 for my renovations," says Dr. Denise, "I'll see you in the future without an appointment." Simone agrees to this, but later, she's not so sure she made the right decision. Does Dr. Denise have an enforceable contract with Sick Simone?

Skip to 0 minutes and 59 secondsPolly Purchaser buys some items online. But when they arrive, she doesn't feel they are of acceptable quality. She clicked the "I agree" button at the time of the transaction. She didn't read the terms and conditions, so she wasn't aware that she'd agreed to waive her statutory rights. Can she return the goods or refuse to pay for them? Does it make any difference if she bought her goods from an overseas seller, or from a seller based in Australia? Polly decides to buy a computer from the local store. The computer comes with a warranty for one year. But just after the warranty expires, her computer fails.

Skip to 1 minute and 42 secondsShould she have taken out an extended warranty at the time of purchase when she had the chance? Can she still expect the store to provide a remedy for the faulty computer, even though it's now after the 12 month warranty has expired?

Case study 2: What's the deal?

Watch “What’s the deal?” for examples of everyday situations that you may not think are bound by contract law.

Talking point

Within the Comments, consider sharing with other learners your thoughts on the situations faced by the characters in the case study:

  • The younger brother demands his older brother pay for the drinks of water. Can he enforce this? Did the brothers have a binding verbal contract?

  • Doctor Denise asks Sick Simone for money to ensure better service. Does Doctor Denise have an enforceable contract with Sick Simone?

  • When shopping online, Polly Purchaser selected ‘I agree’ without reading the terms and conditions. Can she return the goods or refuse to pay for them? Does it make any difference if she bought her goods from an overseas seller or from a seller based in Australia?

  • Polly’s computer failed just after the warranty had expired. Should she have taken out an extended warranty at the time of purchase when she had the chance?


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This video is from the free online course:

Law for Non-Lawyers: Introduction to Law

Monash University

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