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In: Accounting

Chris runs a small company in Melbourne and had a contract with Web Warriors Pty Ltd...

Chris runs a small company in Melbourne and had a contract with Web Warriors Pty Ltd that has offices in Perth and Sydney to supply computer services for Chris’s business at $200 a month. The contract was to expire at the end of December 2019. Before the expiry of the contract Chris said by mobile phone that he would pay $400 a month for the next six months so that Web Warriors Pty Ltd could upgrade the cloud services for storage of data and documents.

Web Warriors continued to perform the maintenance work on the computer system but failed to upgrade the cloud services within the six months. For that six months Web Warriors invoiced Chris at $400 a month which he paid.

When Chris asked why the cloud system had not been upgraded Web Warriors said they had not completed this work as there was no contract.

Advise Chris;

a)     Has Chris got a legally enforceable second contract ?

b)     Are there any cases that support your answer?

c)      What evidence is needed to show there is a second contract?

d)     If Web Warriors Pty Ltd sent a text in January 2020 acknowledging the new charges to upgrade the system, in which State would any contract be formed?

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Expert Solution

PLEASE - - - - PLEASE KINDLY UP-VOTE. IT HELPS ME A LOT. THANK YOU IN ADVANCE.

ekkarill92 answered 2 years ago
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