Australian contract law: what makes a contract enforceable
The essentials of a binding contract in Australia — offer, acceptance, consideration — and what happens when one is breached.
The basics
A contract is usually formed when there is:
- An offer.
- Acceptance of that offer.
- Consideration (something of value exchanged).
- An intention to create legal relations.
Writing is not always required, but some contracts (e.g. land, guarantees) must be in writing to be enforceable.
Terms and consumer protection
Contract terms may be express (written or spoken) or implied by law. The Australian Consumer Law implies guarantees into many supply contracts and lets courts strike out unfair contract terms in standard-form consumer and small-business contracts.
Breach
If a party does not do what they promised, the other side may have remedies such as damages, termination (for a serious breach), or specific performance. The right remedy depends on the type and effect of the breach.
Practical tips
- Put key terms in writing, including price, timing and what "done" means.
- Keep copies of emails and invoices.
- Act within any time limits — some claims have limitation periods.
Ask the assistant to outline the usual steps for your dispute, then confirm with a contract lawyer before you terminate or sue.