ASSIGNMENT TOPIC

Jill runs a restaurant in the Central Business District in Perth. She is looking for a new fridge for her business. For several weeks, she has been making telephone enquiring with different dealers. On 30 September, Jill telephones Bobby in Freemantle and says, "I need to buy a new fridge for my shop, what have you got available at your shop?" Bobby replies "I have several new fridges but the one for your needs is available at the price of $ 5, 000." Jill says "Great! Let me think about this and get back to you."

On 5 October she sends an email to Bobby saying, "Though I am interested in buying the fridge as you mentioned but I can give you

$ 4,500 for the fridge." Bobby emails back the same day saying, "The fridge has already been heavily discounted. I cannot sell you the fridge for $4,500".

On 7 October Jill emails back to Bobby stating, "Oh, that's sad. Because your customer relation skills are great, I want to deal with you. I will pay you $ 5, 000 for the fridge, the exact price that you had asked for."

Bobby telephones Jill on the same day and advises her that he has changed his mind and no longer wishes to sell the fridge to Jill.

Jill insists that Bobby should sell the fridge to her as she has accepted Bobby's offer. Jill demands the delivery of the fridge and also threatens to sue Bobby for breach of contract.

Since Jill does not hear from Bobby, she decides to buy a fridge from another dealer Frijjez R Us (FRS).The representative from FRS and Jill verbally agree to the brand, price, the date of delivery of the fridge and also the warranty on the fridge. The parties agree on the brand of the fridge ShamDung, price $ 5,000; date of delivery Monday 11 October 2021 at Jill's shop at 13 Dongdola Road, Perth.

On the day of delivery included in the batch of documents that Jill receives is the invoice of the fridge, the warranty card and a document that has the following term:

"It is our policy that we give STRICTLY 12 months warranty on our electrical goods. Our clients should note that Frijjez R Us will repair the fridge, if it mal-functions during the warranty period, but our liability is limited to a maximum of $ 5 000".

After 6 months of use, the fridge starts leaking and one day a small spark from behind the fridge set Jill's shop on fire. The total cost of the damage to Jill's shop is $ 50, 000. Jill alleges that Frijjez R Usare responsible for the damage to her shop. Though Frijjez R Usagree that they are inbreach of contract, they dispute the amount of liability.

Jill demands $ 50,000 in damages, but Frijjez R Usargue that theirliability is limited to a maximum of $ 5 000".

Advise Jill as to her legal position in both the case scenarios.

Has a legally binding agreement been made between Jill and Bobby? Can Jill insist that Bobby should sell the fridge to her?

Can Jill demand $ 50,000 in damages from Frijjez R Us for breach of contract? Can Frijjez R Us rely on the limitation clause?

Using the ILAC method, answer the above case scenarios by citing relevant legal authority relating to the law of contract.