Question

Contract law?Use IRAC to analysis the problem.

Laura is an artist. She creates sculptures. She entered into a contract with the ‘Master Art’ a business who sells artworks in Hahndorf. A term of the contract requires that Laura creates 3 sculptures every year for Master Art. At the end of the first year, Laura has created only 2 sculptures. Master Art wants to terminate the contract and Laura is not happy with this. Advise Laura and Master Arts.

Answer 1

Issue:

In this case the issue is to determine whether Laura has breached the terms and conditions of the contract between Laura and Master Art to allow the later to cancel the contract on the ground of failure on the part of Laura to fulfil her obligations to the contract.

Rules:

According to the contract law a contract is an agreement between two or more parties which is legally binding. The parties to the contract must have the intention to create a legally binding relationship. The agreement outlines the terms and conditions which must be adhered by the parties to ensure there is no breach of provision. In case of breach of a provision of a contract or failure on the part of any party to fulfil his or her part of obligation then it allows the other party to rescind or terminate the contract. In fact in case of financial loss to the other party due to such breach the other part also has the right to ask for appropriate compensation for such loss.           

Application:

In this case there has been a contract between Laura and Master Art. According to the terms of the contract it is clear that Laura was under an obligation to create 3 sculptures each year for the organization. Thus, in case of failure on the part of Laura to create 3 sculptures in any year the Master Art will have the right to take appropriate actions on the contract. Since Laura has failed to fulfil her obligation to the contract hence, Master Art has the right to cancel the contract.

Conclusion:

Thus, Master Art has the right to cancel the contract and accordingly, it has cancelled the contract with Laura as she has failed to fulfil her obligation to create 3 sculptures in a year.