Cambridge International College Australia LAW BSBLEG522
You work at a firm and your supervisor has asked you to review six contracts and determine the type of each contract, research the key elements of contracts and assess their validity. You will need to apply principles of contract law to evaluate key issues and assess any applicable remedies to present to your supervisor at the next meeting.
Check the applicable remedies in each of the below scenarios and give the reason why these remedies would be the best course of action. You will need to include relevant case law in your answer to support your reasoning (apply Australian Law/legal system).
Scenario 1 – Mrs. Jones and the Cake
Mrs Jones rings her baker and orders a cake for a birthday party she is having that evening. The baker promises to deliver them later that afternoon. She pays a deposit.
Later that day, they have a workplace emergency and he calls Mrs Jones to let her know that he can’t assist and that she has to find someone else.
Scenario 2 – The 5000-dollar car
John puts an advert on an online marketplace stating that he wants to sell his car for $5000. Anthony sees the advert and contacts John for his address. He drives to see the car and after inspecting it, hands him the money.
John accepts the money and says “Congratulations, hope you enjoy the car!” when Steve pulls up at John’s home. John had forgotten that he had Steve scheduled to view the car.
Steve gets angry and tells John that he shouldn’t have sold the car because they had a verbal agreement.
Scenario 3 – Ben and Andy’s Pool
Ben and Andy put up their house for sale and a buyer shows up to the open house. The buyer notices a pool and asks if they have a safety certificate attached. Andy turns to Ben and the buyer and says “I’m sure we do, we’ll send it later.”
After the open house the buyer puts an offer in and asks for a safety of the pool certificate. Ben and Andy realise that there is no pool certificate and lets the buyer know after they accept the offer. The buyer then withdraws their offer immediately as a result. Ben and Andy call the buyer two days later and say that he can’t change his mind because they’ve already accepted the offer.
Scenario 4 – Ryan and Bailey’s Pub Agreement
Ryan and Bailey were having drinks at the pub. Ryan had been drinking heavily that evening. They were discussing Ryan’s beach house, which he intends to sell. Bailey makes an offer that is slightly under what Ryan wanted, knowing that Ryan was quite intoxicated. Ryan who was in a good mood after his 9th schooner of beer shouts “Why not? I’d love to sell to my best friend!”
The next day, Bailey’s solicitor sends an email to Ryan with details of the sale. Ryan realises what he’s done and calls Bailey to let him know that he wasn’t thinking when he accepted the offer. He would like to withdraw. Bailey insists the contract is valid as he declared it to the whole pub.
Scenario 5 – Joe’s Gardening Hub
Mrs. Hendrickson was looking for a gardener to maintain her garden on a regular basis. Joe from Joe’s Gardening Hub responded to her advert online and said that he’s happy to mow her lawn and weed her garden every 4 weeks but requires a quarterly payment in advance.
She agrees and pays the amount and he only shows up the first time he’s due. She calls him the day after he was supposed to turn up the second time and he ignores her calls.
She doesn’t hear back from him. She later emails him and demands a refund. He calls 12 weeks later and apologises and says he will be back to service her garden but she tells him that she already found someone else and would like a refund.
Scenario 6 – The Tutor
Mary puts an advert on Gumtree for a tutor for her 17-year-old son.
She interviews three candidates and makes an offer to one of them, Jane, to pay her 45 dollars an hour, payable at the end of each week. Jane says that she prefers being paid in cash at the end of each session. Mary says she’s unable to pay that. Jane turns up to the session while Mary is away and asks Mary’s 17 year old son to pay up, who then texts Mary to advise her of the situation.
Jane then receives an angry call from Mary who says she never agreed to Jane’s terms.
Jane insists on being paid.