Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Arthur agrees to buy a house from Martha for $750,000.Arthur and Martha want to save money and neither of them employs a solicitor. Instead, Martha

Arthur agrees to buy a house from Martha for $750,000.Arthur and Martha want to save money and neither of them employs a solicitor. Instead, Martha buys a standard form Sale of Land contract from her local legal stationer and fills in the blanks on the front of the contract. Both parties sign the contract and Arthur pays the 10% deposit.

The house is located in a very bushy area of Sydney and Arthur asks Martha, prior to signing the contract, whether the property is affected by termites. Martha says 'Don't worry, there are no termites in the property'. He proceeds to sign the contract.

About a week after Arthur signs the contract, he remembers about the termites and sends Martha a letter reminding her that this should be included in the contract.Martha does not answer the letter. Arthur has a pest inspection of the house done and the report comes back stating that the house is riddled with termites. It will cost at least $50,000 to fix the problem.

a)How could Arthur enforce Martha's promise? [20 marks] (Refer to general law principles only)

b)Would it make any difference if one of the standard clauses in the contract states: 'This contract represents the entire agreement between the parties and no other terms and conditions are enforceable outside of this contract'? [5 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Law questions

Question

What is Accounting?

Answered: 1 week ago

Question

Define organisation chart

Answered: 1 week ago

Question

What are the advantages of planning ?

Answered: 1 week ago

Question

Explain the factors that determine the degree of decentralisation

Answered: 1 week ago

Question

What Is acidity?

Answered: 1 week ago