Commercial Law

Julia recently received a large inheritance from her grandfather. She decided to use the money to purchase a holiday unit from Evergreen Ltd (Evergreen) as an investment property. Prior to signing the contract, Evergreen advised her that they would be constructing a park next to her property, which would provide her with a nice view and place for recreation. The park would also likely to increase the value of her property in the future. This commitment was backed up with copies of drawings, designs and emails. On that commitment that Julia decided to purchase the town house and signed the contract. Clause 38 of the contract states:

Entire agreement

To the extent permitted by law, in relation to the sale of the Land by the Vendor to the Purchaser, this Contract:

(a) embodies the entire understanding of the parties, and constitutes the entire terms agreed on between the parties; and

(b) supersedes any prior written or other agreement between the parties.

Not long after purchasing the holiday unit, it became apparent that Evergreen had decided not to proceed with the park construction. Julia remembered something about collateral contracts. She decides to sue Evergreen for a breach of a collateral contract.

Advise Julia if she will succeed in her claim and why. Please answer using IRAC method and use case law and breach of collateral contract to support your answer. (approx. 400 words)