Part A - Four step process

Question 1.

Identify the legal issue of law
As the elements of intention and consideration required for the formation of a contract exist, the main legal issue is whether the element of agreement required for the formation of a contract can be established and whether Chickens Galore obliged to provide Christian and Brian each with a Mazda CX-9.
Explain the rule(s) of law identified in step one with reference to relevant authority
Both offer and acceptance should be included in the elements of an agreement in order to meet the requirements for the formation of a contract. An element of promissory of giving or doing something that has real value. In Placer Development Ltd v Commonwealth (1969) 121 CLR 353 case, the Commonwealth government said to pay a subsidy to companies that imported timber products into Australia but after some initial payments, they stopped. The issue is whether the subsidy load considered as a legal enforceable promise, which is later decided by the court that it is not. This is called illusory promises in which the amount is not yet to be stated (Lambiris 2012, 248).
Advertisement is accounted as an offer in Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 case, where Carbolic Smoke Ball Company offered a reward of £100 to whom purchased their products and used them properly but nevertheless caught influenza. Carlill had bought the product, used it as instructed after seeing the advertisement and eventually caught influenza, and the company refused her when she tried to claim the reward, denying that an enforceable contract with Carlill had been created. The case raised various issues, but in overall, the decision leaded to the circumstance in which Carlill could claim the reward (Lambiris 2012, 172).
In Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH [1983] 2AC 34; [1982] 1 All ER 293