Part AQuestion 1Step 1: Area of ​​LawThe area of ​​law focuses on contract law as it relates to the formation of a contract and in particular on the element of the agreement for the offer and acceptance.Step 2: Legal principles A contract is a legally binding agreement between two or more parties. When a contract is made, the parties become subject to legal obligations, whereby there is a legally binding obligation to give or do something. This is known as the contractual rights and duties that the parties must perform. These contractual obligations will bind the parties until their fulfillment. The contractual element is one of the three essential requirements for the formation of a contract before a contract can come into force. The element of agreement can be called “the meeting of the minds”. It is necessary to reach agreement on the essential terms necessary for a viable transaction. The parties must have reached agreement on any matters which they have indicated need to be agreed before the contract is concluded. An agreement can be reached by offer and acceptance. An offer is a clear indication of the terms to which a person is willing to be bound. An offer must be promissory with the details of the promise set for it to be enforceable. A case with an offer that was not promising can be seen in the case of Placer Development Ltd v Commonwealth. In this case the Commonwealth Government said it would pay a subsidy to companies importing timber products into Australia. The amount of the grant has not been set but will be determined at a later date. Placer had imported lumber and wanted to force payment of the subsidy. The court found that what the government had said was not a legally binding promise because a promise... middle of paper... under the responsibility of the supervising employee. Xpress Printing & Stationary can rely on the exclusion clause contained in the contract, even if it will be critically challenged by the other party as it has failed to meet a conditional term followed by negligent actions. Step 4: Possible ConclusionIn conclusion, Xpress Printing & Stationary will not be able to rely on its exclusion clause since the errors that occurred were not specifically due to what was stated in the exclusion clause. The errors were caused by a vacationing student and could have been avoided if the employee had not allowed the vacationing student to experience the machine and had handled it himself. Furthermore, if proofreading had been carried out (which was part of the duration of the contract) the errors could have also been avoided. Therefore, Xpress Printing & Stationary is clearly to blame.