Joanna is setting up a small business mowing lawns and maintaining domestic gardens. Her business is called'Spring Lawns and Gardens'.

Joanna needs a sturdy lawnmower that will withstand frequent use, so she goes to her local hardware store called Lawnmower City. Joanna is assisted by Jimmy. Joanna explains her needs, and Jimmy shows her the MowMaster 6000, a new brand of lawnmower.

"The MowMaster 6000 is the one for you. It's amazing! The blades can cut throughanything, and they'llnever get blunt or bent out of shape. I think you'll get through your jobs in no time with thislawnmower and be able to fit more clients into the week. It was designed inGermany and made from the best quality parts."

Joanna checks out the MowMaster 6000 and is convinced by Jimmy's comments. She decides to purchaseone.

1. Are any of Jimmy's statements about theMowMaster 6000 part of the sale contract? IRAC

After only 3 days of using her new MowMaster 6000, Joanna notices that it is not cutting as well. When she inspects the blades, she finds that they are already worn down and blunted.

When she calls Lawnmower Cityto complain, she is told, "We're not responsible for any problems like that. Didn't you see the sign at the counter?"

At the sales counter where Joanna had paid for her MowMaster 6000, there was a small sign:Lawnmower City is not liable for any breach of warranty or condition in any sale of its products.

When Joanna was at the counter, the sign had been partially hidden by a group of pot plants being held aside for another customer to collect.

2. Does the sign apply to Joanna's sale contract withLawnmower City? (5 marks) IRAC

2

Joanna receives a phone call from a potential new client, Ronald. Ronald explains that due to his worseningarthritis he's no longer able to tend to his precious orchid collection. He is seeking Joanna's help to come andtend to the orchids in his greenhouse each week.

After their phone conversation, where Joanna requested more details, Ronald emails Joanna explaining the specific rare types of orchid he has, and how they require special equipment and fertiliser for their maintenance.

Joanna is concerned about the expenses and risks involved, and wants to ensure that Ronald sticks with the arrangement for an extended period. She prepares a custom agreement and emails a copy to Ronald, asking him to sign and return it.

A few days later, when she hasn't received any response from Ronald, Joannacalls him. "Oh yes, I saw theemail," says Ronald. "I'm just waiting for my nephew to come around and help me with the printer and scanner here, to send it back to you."

"So,you're definitely going ahead? Shall I get on with preparations to start caring for your orchids?" Joanna asks. Ronald says yes.

Joannagoes ahead and orders the special gloves, fertiliser and other equipment she'll need for the job. Intotal, it costs her $1,000.

After another 4 days, Joannastill hasn't received a signed copy of the agreement from Ronald. She calls him and leaves a voicemail, asking about the contract and when she can start tending to the orchids.

The next day Joanna receives an email from Ronald: "So sorry Joanna. My nephew has offered to help me with my orchids on his weekly visits. So,I won't be needing your services after all!"

3. Can Joanna argue promissory estoppel against Ronald? (6 marks) IRAC

After her experience with Ronald, Joanna is feeling cautious about clients backing out of their promises.

She decides to print a set of stickers to provide to customers. The stickers state:"Cancellation of any futureappointment must be communicated in writing at least one week in advance, otherwise the fee for that appointment is payable in full."

Joanna places a sticker on the back of each receipt in her receipt book. She usually fills out receipts for each job and provides them to her clients after each visit.

4. Is the statement on the sticker binding on future clients? (4 marks) IRAC