Problem
James and his friend Winston decide to spend a week in Vancouver. They place a reservation for a weekend package (flight and hotel) through Biju travel agency. The total cost is $3.200 including the agency fee and travel insurance.
During the meeting James and the travel agent agree to finalize the transaction through payment within 5 days. However, a couple of days later James becomes unable to travel and calls the travel agency and notify the cancellation of the booking.
The travel agent informs him that the reservation made at the travel agency office was final and James had to settle the full payment as per the agreed amount of the package. Upon James's refusal, the agent claims they will bring him to Court for breach of contract.
Choose your position by answering one of the following arguments:
(a) BijuTravel Agency will win in court because this is a valid contract. Explain why you sustain this position and highlight which are the 6 elements of the contract traceable in this case.
(b) Biju travel agency will be unsuccessful in Court because the reservation made by James over the phone does not qualify as a contract. Explain why you sustain this position, based on an analysis of the essential elements of a contract that could - or could not - be traced in this case scenario.