Sukriti after graduation from MIT Sydney has been working as an accountant at Best Accountants since...

Sukriti after graduation from MIT Sydney has been working as an accountant at Best Accountants since July 2015. She married Rajib in August 2016 who at that time had been working as the Chief Financial Officer at Sydney Finance Miracle. On their first wedding anniversary, Rajib promised to buy a diamond necklace for Sukriti. However, Rajib lost his job immediately before the anniversary and as a result could not carry out his promise to Sukriti. Since then their relationship started deteriorating. In December 2018, they agreed to end their relationship by way of divorce and as required by law, since then they have been living separately. In the meantime, while Rajib was going through financial hardship early this year, Sukriti lent him AUD$10,000 upon Rajib’s promise to repay the loan within a month. Required: Advise Sukriti whether she can enforce Rajib’s promise to buy her a diamond necklace and to repay the loan could be enforced under Australian contract law. Refer to relevant case laws in support of your answer.

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Expert Solution

Australian contract law concerns the legal enforcement of promises that were entered to form a contract. There are 5 essential elements necessary for legally binding contract formation

Agreement
Consideration
Capacity (sound mind and legal age)
Intention (to enter into legal relation)
Certainty (the contract have to be complete, certain and clear)

The absence of any of these elements will signify that the agreement is not enforcable as a contract.

In the given case, Rajib had promised to buy his wife Sukriti a diamond necklace this doesn't qualify as a contract since social or domestic agreement between families are presumed not to intend legal consequences. A domestic arrangement with no intention to create legally binding relations will not constitute a contract, Therefore Sukriti cannot enforce Rajib's promise to buy her a diamond necklace

In the second instance Rajib promise to repay the loan he bought from Sukriti within a month, there isn't a written agreement or certainity of repayment date. The promise have been entered into earlier this year when they were legally husband and wife which makes it social or domestic agreement hence not enforceable by law.

ekkarill92 answered 1 year ago

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