Reference no: EM131933362

"How to explain there was agreement and consideration for a valid contract?"

virat was interested in buying a cafe business in Sydney. He visited one cafe called 'Best Espresso' and spoke to the owner(Lucky) who showed him around the cafe and kitchen area where the chefs made coffee and prepared light meals. Virat could see the potential in this business and he counted 6 tables outside the cafe with enough seating for 24 customers and seven tables on the inside with seating for 30 customers. The cafe also displayed a colorful sign outside showing the café's name and businesses logo which impressed Virat. He decided to purchase the business after consulting his accountant who thought it would be profitable.

It was the middle of summer and most days the temperature was around 34 degrees. After Virat's first full month of operations, he was making a nice profit. This followed his introduction of iced-coffees and fresh-fruit 'smoothies' to the drinks menu. The following month, however, Virat received a letter from the Local Government informing him that he had to remove the outside tables as his cafe never had permission for these. The loss of 24 seats meant he would lose a significant percentage of his trade and even kill off his business