Margaret owned an antique store that specialised in rare porcelain dolls.When she opened the business in 1989, it was at a shop in an easternsuburb of Melbourne. In 1999 she started to advertise on...

LAW
LAW
May 28
2012

Margaret and
antique
porcelain dolls
Margaret and the antique porcelain dolls

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ISSUE:
The given case study is about Margaret, a dealer of rare porcelain dolls, who owns an antique
shop of the same. Margaret opened the shop in 1989, in the eastern suburb of Melbourne and
with time it developed into a big business. By and by, Margaret started advertising about her
business of rare porcelain dolls on the internet from the year 1999. The business started
prospering on a good note in due course of time and soon she realized she would need the help of
other people to sustain the business, with the pace it was developing in. In 2006, Margaret firmly
decided that she would need the help of other people to keep the business going. So, one night in
July 2006, it was decided in a family discussion at the kitchen table that Margaret would
continue her business for a couple of years more and then would finally retire. It was also taken
into consideration that she would need other helping hands in the business and an agreement was
entered into with Emily, the youngest daughter of Margaret in context to the help required in
Margaret’s antique shop selling rare porcelain dolls. In the agreement, it was decided that
Margaret would employ Emily in the shop as long as it was required and in return, she would get
the stock of unsold porcelain dolls as her salary, at the end of the business. Thus, we see in the
first instance that in the present case, all the mentioned facts relevant to the case study suggests
that it was an agreement which could be enforceable in a court of law to which it is subject to,
and hence, it was deemed to be a contract. The mentioned case about Margaret and Emily
suggests that the entire elements essential for a valid contract according to the Australian law
was present, viz., agreement in the same sense and manner, consideration, capacity to contract,
intention to create a legal contract, formalities and lastly, certainty. However, in the last few
months of 2009, Margaret decided herself that she would give the amount of unsold stock of
Margaret and the antique porcelain dolls

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porcelain dolls to charity and wound up the business. Now raises the question of the breach of
contract as the element of consideration fails to be fulfilled by the end of one party.
FACTS:
In the given case, Margret is a dealer of rare porcelain dolls and has expanded her business to
such an extent that now she needs to include her youngest daughter Emily, in the workforce so as
to keep the business going. Emily was promised unsold stock of dolls as the consideration for her
service provided to the antique shop as and when required. However Margaret does not keep her
promise at the termination of the business and decided to give away the unsold stock for charity.
Emily’s consideration remained unperformed.
ANALYSIS:
In the given case, an agreement was entered into by Margaret and her youngest daughter, Emily.
The agreement was enforceable in a court of law to which it was subject to, and hence it could be
deemed as a contract. Thus, the parties to a contract, that is, Margaret and Emily, had certain
obligations to be fulfilled, which would result in the performance of their part of the obligations.
The facts mentioned about the case indicate that a valid contract existed between Emily and her
mother Margaret. Out of the five most important elements to a valid contract, consideration
seemed to be the most important in the given case. In...