Andrew Black is a former defence consultant who now works for Intelligent Motors Pty Ltd, a company that deals with modernising motor vehicles so that they can self drive. Andrew is skilled in the area of artificial intelligence and autonomous vehicle technology, having worked in the area during his consultancy.

Intelligent Motors Pty Ltd has hired Deny Claim, a GPS navigation expert, to build a suitable navigation system that will allow autonomous cars to

safely navigate any road network. A written contract was signed between the parties. Deny is a high achiever. He attended Institute of Technology (IT) and graduated with the highest honours at age 16. He knows almost everything relating to navigation science and technology. He is a professional engineer and can craft any kind of navigation device. Deny is famous for creating the intelligent navigation systems that are used in the new futuristic defence aircrafts.

Andrew Black told Deny that it was essential that the navigation system was safe and that it should be able to update itself for at least 5 years. He added that the system ought to work on marked roads and unmarked roads. Deny replied "All of our navigation systems are intelligent and can be used all over the universe on any terrain. We have it sorted. They will also update themselves for upto 10 years." The two agreed on this

verbally and this statement was not incorporated into the written contract.

The cost of developing the navigation system was $500,000, to be paid in two instalments: at the start of the work and the balance on completion. Intelligent Motors paid $200,000 while the work was being carried out.

When Deny indicated that he had finished the work, Intelligent Motors ran some tests on the navigation system as soon as they received it. Andrew Black installed it in one of the cars that they were working on and took it out for a drive. Immediately the car reached a busy unmarked road, the navigation system failed and the car stalled and would not move any further. As a result, Intelligent Motors refused to pay Deny, arguing that the navigation system was not safe and did not work according to their agreement.

REQUIRED:

With reference to relevant legal principles, use the IRAC legal problem-solving approach to advise Intelligent Motors of their common law rights against Deny Claim as they seek to rely on his assertions. Use appropriate case law in support of your answer.