CASE STUDY

Gracieuse Medeiros is an Australian supermodel who began an intensive fitness program to prepare for her appearance in a TV Commercial for gym equipment. She knew that she needed to be very fit. In addition to her fitness program, she decided to consult a dietician about what sort of food she should eat. The dietician suggested that she have at least one protein smoothie every day. Gracieuse researched a range of blenders that might suit her needs. At her local electrical store, she found that the only blenders for sale there did not meet her needs as they were not powerful enough to produce smoothies. Gracieuse kept looking. She had heard good things about the Great Homewares Store so she decided to go there to purchase a blender that met her needs. She was very happy to find that a blender was on sale at the Great Homewares Store.

A sign advertising the blender stated: It is high quality, superb, safe and durable. You wont regret it.

She purchased the blender and kept her receipt. Once home, she unpackaged the blender and as soon as she plugged it in, the upper lid came off and the sharp blades flew out, badly injuring her right hand. At the hospital, a doctor explained to Gracieuse that she would need stitches in her hand, and she would be unable to use her hand for four weeks unless the cut had healed, so the stitches could be removed. Gracieuse was very upset when she realised that she would not be able to participate in the planned TV Commercial and that another supermodel would have to take her place. This also meant she would lose the $12,000 fee that she would have received for the commercial.

QUESTION 1 (Contract Formation: Offer and Acceptance, Intention, and Consideration) Use the IRAC method to advise Gracieuse if she entered into a contract with Great Homewares. You will need to address the essential elements of a simple contract including offer and acceptance, intention to be legally bound, and consideration.

QUESTION 2 (Contract Validity: Capacity, Legality, and Genuine Consent and Contract Construction: Terms, Conditions, and Warranties) Use the IRAC method to advise Gracieuse if she can terminate the contract. You will need to address the elements of a valid contract including capacity, legality, genuine consent, mistake, misrepresentation, duress, undue influence and unconscionability.

QUESTION 3 (Contract Termination Remedies) Use the IRAC method to advise to advise Gracieuse about the remedies she may seek under Contract Law in Australia.

Please give more focus on Rule with more than 2 or 3 and application.