Question 1: a) This problem question contains various issues that need to be explored. However, the two major issues that need to be argued are whether or not a contract exists between the parties and if the reasonable notice has been given. For the first issue, to be legally classified as a valid simple contract, there are three essential elements: Elements of contract: (1). Agreement in the form of an offer and acceptance (2). Intention to create legal …showed first 75 words of 2079 total…

…showed last 75 words of 2079 total…influence much about the decision Michelle has made, they are not terms of their contract. So he doesn't need to pay her back. References: 1.<Tab/>Latimer, P,. Australian Business Law, CCH Australia Ltd (Latest Edition) 2.<Tab/>Sweeney, B. & O'Reilly, J., Law in Commerce, Butterworths, Sydney, 2004 (second edition). 3.<Tab/>http://dictionary.law.com/default2.asp?selected=337&bold=consideration|l (06/09/2004: 9;37pm)