The Australian and French
governments sign a contract for the manufacture and sale of 10 submarines.
According to the contract, France would build 10 submarines whilst Australia
would pay $10 billion for them. After a change of Prime Minister in Australia,
the Australian government refuses to pay the price of the contract.
Which of the following
is CORRECT ?

Question

The Australian and French
governments sign a contract for the manufacture and sale of 10 submarines.
According to the contract, France would build 10 submarines whilst Australia
would pay $10 billion for them. After a change of Prime Minister in Australia,
the Australian government refuses to pay the price of the contract. 
 Which of the following
is  CORRECT ?

Answer

According to the doctrine
of promissory estoppel, but not under the common law of contract, the
Australian Government must pay the price.

Answer

There is an agreement, but
no consideration or intention to create legal relations, and therefore there is
no valid contract.

Answer

There is no contract because no money has yet
been paid.

Answer

There is good consideration and intention to create
legal relations, and thus a valid contract.

Crowdly

The Australian and French governments sign a contract for the manufacture and sa...

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