FACTS Barbara, who is now retired, loves cooking shows, especially MasterChef. More particularly, she loves cake decorating, so she decides to start a cake business, Sweet Treats. She discusses supplies and pricing of ingredients with her local supply shop. She now needs to organise a webpage to advertise her business, before she can go ahead and order the supplies. Stephen, her 17-year old grandson loves technology, and is hoping to study Bachelor of Information Technology at La Trobe University next year. He is currently studying Computing at school. His Dad, George, recently bought him a new Apple computer to encourage him to improve his computing skills. Barbara rings Stephen by videocall on her new iPhone and describes her business to him. She asks him whether he would set up a webpage for her, then maintain the webpage for her for the duration of the business. Barbara tells him she can only afford to pay him $3000 for setting up the webpage, then $500 each year for maintaining the page. She tells him she wants to start her business very soon, so would need a response from him by Friday night, by way of a text message on her iPhone! On Friday morning, Stephen rings Barbara on her phone saying: Grandma, I will do the job! 1. Is there an enforceable contract between Barbara and Stephen? (6 marks) Stephen informs his dad, George, about his agreement with Barbara. George asks Barbara to pay him $500.00, given that the computer he bought for Stephen will be partly used for the set up and maintenance of her webpage. 2. Does Barbara need to pay $500 to George? (4 marks) Barbara decides to order the cake ingredients and all baking and decorating accessories, so she is ready for customer orders. She sends an email to Cake Supplies and Decorating Centre and advises that she needs flour, cake baking accessories, and decorating supplies, for her new business. Mary, the store manager, emails back and says: I can definitely provide you with all your cake business needs. However, because of current conditions, we are short on supplies, and would have to make a special order to get the supplies for you. Barbara emails back as follows: please go ahead and do the order immediately, as our webpage will be live next week. I will email you with the exact amounts I need, once the webpage is up. A few days later Mary emails Barbara to advise that she has placed the special order with the warehouse and will be emailing the final order confirmation to them the following morning. Barbara ignores the email as, whilst surfing the net on her iPhone, she found a cheaper supplier and placed an order with them. On the day the webpage goes up, Barbara remembers the email communications with Mary, and rings her to cancel the order. Mary is disheartened as she has already ordered and received the items, which may perish as she hardly receives any orders, given the current conditions. 3. Is promissory estoppel relevant to Barbaras dispute with Mary from Cake Supplies and Decorating Centre? (5 marks)

Barbara decides to celebrate the grand opening of the business by setting up a cake stall at the local seniors club, the Young-at-Heart-Club, the week after the website goes lives, with all profits of sale on that day to go to the club. However, she realises that she will need volunteers to assist with the baking and selling at the stall. She posts the following notice on her webpage: Dear Young-at-Heart- Club members. To celebrate the grand opening of my cake business, Sweet Treats, I will be setting up a cake stall at the club next Saturday, with all proceeds of sale going to the club. I will need 5 volunteers to assist with the baking and selling. First 5 volunteers to arrive on Saturday morning will receive a $100 voucher from Sweet Treats. Maggie, who is from Sydney but currently on a long visit to her parents in Melbourne, reads the post and is keen to help. On Saturday at 9.00 am, she arrives at the Club, and assists Barbara. 4. Is Maggie entitled to the voucher if she helps with the baking and selling? (5 marks)