Introduction

Formally, to be able to advise Tom with references to common law of contract that if there is any form of contract or acceptance made by Tom and Vicky, it is necessary to determine the main facts of the problem, whether or not to convince one of the two parties is illegally bonded and, back up by using relevant case law that bring about the similarities, certain behaviors to apply the precedents to this problem.

In order to indicate the formation of a legally binding contract either by oral or written between Tom and Vicky, there must be contain three elements: agreement created by offer and acceptance, consideration and intention to create legally binding contract. Advising Tom about this problem requires information to determine if there is any enforceable contract and provides with references. Legal capacity, genuine consent and legal of purpose are not discussed in this circumstance.

1) Is there a contract made by the two parties?
Foremost, it is important to confirm the existence of a legally binding contract. Prior to the intention to purchase the land by Tom, Vicky intended to sell the land when she lodged for subdivision of the farm. However, there was actually no offer had been made between Vicky and Tom based on the requirements of a formal contract.

There was not any agreement since its principles were not fulfilled. No offer has been carried out by Vicky because 1) the communication of the offer does not exist but Tom actively knew about the subdivision and 2) no firm promise was indicated. Tom was working at the farm and acknowledged about the subdivision application. Notwithstanding, the acceptance of an unauthorized communication of an offer that Tom made is not enough to give rise to a formal contract between him and Vicky. Although there is an intention to provide specific purchase of the farm, but Vicky did state that