Aaron and Margo are a recently retired couple and have always wanted to do some travelling after their retirement. They have never travelled outside Victoria before. As they are travel novices, they have decided to visit their local travel agent, Aussie Holidays Pty Ltd (AH), to plan their first post-retirement holiday. In their discussion with AH, they expressed their desire for a relaxing vacation with access to a beautiful beach, golfing facilities, and water skiing. The manager of AH, Matt, eager to make a sale, recommended a picturesque island resort named Paradise Haven, located off the far north Queensland coast. Matt described it as a luxurious resort and also said that it will meet all their requirements and more.

Aaron and Margo were convinced by Matts glowing description and agreed to book a holiday package to Paradise Haven. To conclude the deal, Aaron and Margo were handed a written contract. On the front page of the contract document was printed in bold but not in big print, the following words:

This contract document is intended to create a legally binding contract; any party contemplating signature is advised to take appropriate independent advice before doing so.

The other terms includethe following:

Clause 4: All terms of the contract are included herein. It is hereby acknowledged that all express or implied term or statement by AHs employee or agent are hereby excluded unless specifically included in this Agreement.

Clause 6: AH accepts no responsibility and will not be liable to the customer (Aaron and Margo) for any loss, cost or damage (including loss of enjoyment) suffered directly or indirectly in connection with (a) any changes to itineraries or deficiencies in facilities provided; (b) any disappointment or loss of enjoyment; and (c) any personal injury or death resulting from the provision of services stated in this agreement.

After briefly looking over the contract terms, both Aaron and Margo signed the contract with AH. Matt, then, stamped the contract with the following:

It is hereby acknowledged by the party whose signature appeared below that they have read and understood all the terms of the contract.

Aaron and Margo were asked to sign just below the statement, and they paid $2,000 for a 6-day holiday package, expecting a luxurious and enjoyable vacation.

Upon arriving at Paradise Haven, they were immediately disappointed. The accommodation provided was not the promised beachside resort, but a rundown cabin in the outskirts of the island. It had very basic amenities; the water supply did not have adequate pressure, the toilet was filthy, and there was no vehicle access. The cabin appeared to have been abandoned for quite some time, leaving them in shock and dismay.

The beach nearby was not the serene and sandy beach they had hoped for but a rocky and coral-filled area, making swimming impossible and unsafe. To their surprise, there were no facilities for water skiing and the only golf course on the island was a mini golf course in the village, four kilometres away, which has been vandalised by youths.

Feeling cheated and distressed, Aaron and Margo tried to contact AH a few times, but they were unresponsive and avoided their calls. Stranded on the island with no alternatives, they decided to catch an earlier flight home to Melbourne, incurring additional airfare expenses as their holiday package required them to fly back on a specific date.

As a result of the terrible conditions at Paradise Haven, Margo's stress and disappointment escalated to the point of a nervous breakdown, requiring immediate medical attention and hospitalisation.

Aaron and Margo are left with the burden of medical bills, additional airfare costs, and a ruined vacation experience. The price paid by Aaron and Margo for their holiday package was approximately the same as for most alternative resorts for which they had been shown brochures by AH.

Feeling misled and betrayed by AH's false promises, they decided that they want to take legal action for their financial losses, emotional distress, and the ruined holiday experience.

Advise Aaron and Margo as to their contractual rightsandwhether they have any legal claim for damages against the travel agent.

[Your answer must provide justifications and refer to legal principles and cases including any relevant provision of theAustralian Consumer Lawto support your discussion]

NB: You are NOT required to discuss any statutory rights relating to consumer guarantees for the provision of services or the sale of goods.

Assignment criteria

1. Identification of issues.
2. Identification of the source of the law on each issue: case law, statute.
3. Accurate explanation or justification of the relevant law on each issue.
4. Application of the relevant law to each issue.
5. Presentation and organisation of work in a logical and grammatically correct manner

Important: Provide the relevant cases in Australian Consumer Law

Key elements in the question

• Importance of signed contract
• Relevance of verbal representations when there is a written contract were the verbal promises part of the terms of the contract?
• Terms of the contract condition or warranties
• Possibility of verbal assurance being misleading and deceptive conduct under the Australian Consumer Law