Certainty Cases

Question 1

facts in Biotechnology Aust Pty Ltd v Pace

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Answer 1

FACTS
Dr. Pace was employed by Biotech with a salary, company car, and an option to join a non-existent staff equity scheme. The scheme was never created, and Dr. Pace sued for breach of contract.

ISSUE
Was the promise of the equity scheme enforceable?

FINDING
The promise was illusory and unenforceable due to its vagueness and lack of clarity. there was numerous elements to the senior equity scheme that was not negotiated and left the future discretion.

Question 2

certainty approach in Fletcher Challenge Ltd

Answer 2

First, check if there is an intention to be bound right away.
If some terms are to be discussed later, it doesn’t mean there’s no intent to be bound.
Consider the background circumstances, like earlier negotiations or statements of intent.
Usually, the answer is no, but it’s possible to figure out if there is an intention to be bound.
If there is no intention, the agreement fails. If there is intention, the court will try to honor it.

Question 3

What does Tower Insurance v Nicon establish as a contract is binding

Answer 3

use of words ‘shall’ and subsequent conduct acting as if binded and no matters marked as undecided

Question 4

why is Tower Insurance different from Fletcher Challenge

Answer 4

Tower did not have matters yet to be agreed like Fletcher did