There is consideration on this occasion because Jan promises to pay the money for her meal by tomorrow. Even though the money was not paid at the time of purchase, Jan has made a promise to the student cafeteria through John, the cashier, to pay for the goods the next day therefore making the consideration executory. .
There must be an intention to create legal relations for a contract to be legally enforceable. In the course of business dealings, it is often assumed that the parties are intending to be legally bound. This means that Jan must intend to be legally bound, as there is no indication otherwise to show that she was not willing to be bound by the contract.
The capacity of the parties must also be considered. There is no evidence to suggest in the information given that Jan was a minor or intoxicated at the time entering into the contract.
Legality of object proves that the contract is valid as it is dealing with the sale of food which is not an illegal object. .
A contract does exist. All elements needed for a contract are satisfied in this case; offer, acceptance, consideration, certainty of terms, intention to enter into legal relationships, legal capacity, and legality of objects.
HAS THE EXCLUSION CLAUSE BECOME PART OF THE CONTRACT?.
Above the cashier's cash register a sign appears which reads: "Customers purchase food at their own risk." This is classified as an exclusion clause.
When dealing with exclusion clauses, the person trying to rely on the clause must show that the clause has actually become part of the contract itself. In order for the student cafeteria not to be liable for Jan's food poisoning, they must show that the exclusion clause has in fact become part of the contract.
An exclusion clause is a term of the contract, which limits, or excludes altogether, a liability to which one party to the contract would otherwise be subject Therefore this takes place because Jan was given notice of the exclusion clause and accepted it, and it was a term before the contract was made.
