Question
Louisa Reed is a young graphics designer keen to open her own business offering a one stop design shop. She had been looking around for
Louisa Reed is a young graphics designer keen to open her own business offering a one stop design shop. She had been looking around for suitable premises, but knew she had insufficient funds to finance the whole concept, so she asked her family for help. Her cousin owned a number of business properties in Blacktown and agreed to let one to Louisa for half the rent he would normally charge. Louisa checked the building and told her cousin there were some alterations she would like to make to improve ventilation and allow easier access to the design studios. She told her cousin she would need to start on the alterations as soon as she received permits from the local council. She also undertook to pay for all the alterations herself; they were quoted at $39,000. However, she told her cousin she did not want to waste these funds so she would not want to start the business unless her cousin was certain he would allow her to use the premises at half the normal rent. Her cousin replied that he would let her know within a week if he changed his mind about allowing her to use the premises. Louisa had explained to him that the work would take about three months to complete which would give her time to start her marketing campaign. It would also give her time to complete some design concepts which she thought would bring in a suitable income prior to the business commencing in the new premises. One week after speaking with her cousin Louisa approached the council, and commenced negotiations about work permits. Several weeks later, having received approval, work commenced. Before any lease was signed and when the work was almost finished Louisas cousin told her he had received a better offer for the premises and was no longer willing to continue with the arrangements previously discussed. Advise Louisa what rights, if any, she may have against her cousin, in these circumstances, and as to the possible remedies which may be available. Consider all reasonable possibilities and give full legal reasons for your answers.
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