Question
Advise all parties regarding all legal issues present in the following case. Please use IRAC formula to address the specific issues (In terms of issue,
Advise all parties regarding all legal issues present in the following case. Please use IRAC formula to address the specific issues (In terms of issue, rule application and conclusion). Cover all issues, parties, defences and remedies that you identify in the scenario below.
Case fact:
Vincent Vega is a residential real estate agent based on the Gold Coast. His employer, Marsellus Wallace of Wallace Agents Pty Ltd. Winston "the Wolf" Wolfe, a wealthy and infamous businessman, has appointed Vincent to sell his old Clear Island Waters mansion. "Sell the place for no less than $2.5 million bucks and don't forget to mention that there is going to be a stunning infinity pool overlooking the river". The students have an 18-month lease with Winston of which there are 6 months remaining. Vincent puts the house photographs and swimming pool/boat details into his brochure and starts marketing the property. Vincent knows Winston Wolfe will not accept an offer less than $2,500,000 but thinks this will might look a bit pricey for this property, so in the advertisement Vincent puts in "OFFERS FROM $2.2 MILLION". Vincent also puts a disclaimer on the front of his brochure, but not on page 3-4 where the photographs of the proposed pool and description is included. He also conducts a title search and finds no record of the lease Winston mentioned and thinks to himself "probably because it is just a casual short-term arrangement with some students - not to worry." Under instruction from Winston, Vincent also stated in all advertisements "walk through the backyard to your own private pontoon and berth (moorings) for your boat and jet-ski!" However, these have not been installed. Upon inquiry, Vincent learns that Winston does not have council approval for these either, only approval for the swimming the pool - which has not yet been installed. Vincent calls Winston to inform him of how the first open house went. Winston says "Well Vincent, I need to move on fast. Look, I have a few big deals happening and I need cash quick. See if you can get cash unconditional". That afternoon, Jules Winfield calls and offers $2M after seeing it on the internet. Vincent asks if he can pay cash in 30 days and Jules says he can. Vincent attaches the contract with the details of cash unconditional, settle in thirty days. Jules Winfield signs this, scans it and sends it back within an hour. Vincent heads over to see Winston and he signs accepting Jules Winfield's offer. Vincent then scans the completed contract and sends it back. Jules makes the deposit and the cheque clears. Meanwhile, the Bond students are very unhappy they've had to move to a new house so quickly during their busy semester and find themselves living in a dodgy share-house in Robina. They were very clean and always paid rent on time. Two men came to the property, gave them their rental bond back and escorted them away. Ten days later, Jules Winfield emails Vincent and says he has found something else and doesn't want to complete the contract. Vincent tells Jules Winfield that he is bound by the contract. Vincent doesn't tell Winston because he hates bad news. Another five days later, Jules emails Vincent and says he is having trouble raising the money and needs a thirty-day extension. Vincent decides he needs to ask Winston who is then furious and demands "I need that money now!" Jules ails to settle on time and says that she doesn't have the money so even a thirty-day extension won't help. Vincent retains the deposit even though Jules demands it back. 4 With Winston pressing him, Vincent decides to relist the property to find another buyer. Winston tells Vincent to take what he can get urgently. Two days later, local property developer, Esmarelda offers $1.9M cash unconditional and Winston accepts. The offer is completed and Esmarelda takes possession thirty days later. Esmerelda is from Syndey and relocates up the Gold Coast to live in the property. Winston Wolfe pursues Jules Winfield for the difference between the $2M offer and the $1.9M paid by Esmarelda (minus the deposit which he has already retained). Esmarelda needs somewhere to moor her yacht she is also brining up from Sydney, so she speaks with the Gold Coast City Council to obtain the necessary permit to install a berth and pontoon. She is enraged when council inform her the water level is too low in that particular area and that she will not be getting approval. At the rear of the property, there is a wooden boardwalk which backs onto the lake. This covers the entire width of the back yard and continues through Butch's property through to a park. The park can be accessed by the street, but also via the waterfront boardwalk. During the sale process, Vincent told Esmarelda that the current owner walks through there to the park all the time as there is an easement. Esmarelda has young children and does not want them on the street, so she thinks the easement is great, as it will guarantee future access to the park for her children. During the settlement, Esmarelda's solicitor explains there is no access easement registered. Esmarelda said not to worry, she just wanted the house pronto. However, when she moved in she found that Butch has put a fence up (council approved) blocking all access.
At this point, Esmarelda is getting very frustrated. Her new home has so many problems and she is very stressed as she is a single mother going through a divorce. Fortunately, she has a friend, Mia, who is an excellent real estate agent. Mia agrees to help her out and market the property, charging "mates rates" for commission. Esmerelda signs all the paperwork and official appointment of agent forms required, but notices there is no inclusion of any special discounts in the agreement. During the marketing campaign, Esmerelda's husband (Alexander), instructs his lawyers to put a caveat over the property as it was purchased with their joint-bank account. He expects to see some money back in the divorce and if he cannot get the money, aims to take the property. 5 Mia then returns to Esmerelda and explains, "Wow have I got great news for you! I've found a buyer who is willing to make an offer of $1,880,000. I know this is $20k less than what you paid, but at least you will be out of this mess. What do you say?" Esmerelda is accept the offer and signs the contract. The solicitor representing the buyer, Rodger Slick, telephones Mia and states: "You've gotta be joking right? There's a caveat on this property. My client rescinds their offer and will not be proceeding any further. Good day." Mia reports the bad news back to Esmerelda who is ropeable that the buyer has pulled out of the deal. Mia then hands Esmerelda a bill for the marketing fees incurred for listing the house thus far, which Mia refuses to pay. While reviewing the above issues, Marsellus would like your advice on this matter. Advise all parties regarding all legal issues present in the case.
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