Question
Greenery Accountants Pty Ltd ('Greenery') is an accounting company in Bankstown that wants to update its computer software and database management system. Graham, Greenery's operations
Greenery Accountants Pty Ltd ('Greenery') is an accounting company in Bankstown that wants to update its computer software and database management system. Graham, Greenery's operations manager, visits Sigma Software Pty Ltd ('Sigma Software') where the salesman, Lars, explains their latest business computer system and gives Graham a detailed glossy brochure about the system. Graham asks Lars whether the system includes automatic back-up of data to the internet 'cloud' and an intranet system for internal use, as their current system does not have these and he says this is essential for the company. Lars says it does. Graham is very impressed with Lars's presentation and says he will discuss it with the senior management. Four weeks later, Graham makes a presentation at Greenery's next board meeting, showing the board the brochure and explaining the points that Lars made including the automatic back-up to the cloud and the intranet features. The board decides to go ahead with buying the new system for the stated price and the next day, Graham emails Lars advising him of this. Lars is away on holidays, however, his co-salesman, Jackson, emails Graham back saying that this is great news and sends Graham their standard company contract for the new system. The following week, Sigma Software installs the new system. Greenery finds that the system works well, except that it does not have automatic data backup to the cloud or an intranet system. Graham calls Sigma Software but Jackson says that this is not included and that these two services will cost an additional amount. He suggests that Graham read the contract details. Graham checks the contract and finds that there is nothing in it about providing either automatic backing-up to the cloud or an intranet service. Graham is very unhappy. Advise the parties of their legal rights and liabilities under the general/common law ONLY.
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