Mrs Patel and her son Ravi farm alpacas in a remote region of Victoria at Peru Farm. The herd of alpacas were purchased for a price of $8000 per animal. The fencing has become dilapidated in some parts and the alpacas tended to escape from time to time.

Mrs Patel entered into a valid contract with Fine Fences Pty Ltd ('FF') about constructing a fence.

The terms of the contract included the following:

i. FF will construct 1000 metres of wire fencing.

ii. Mrs Patel will transfer $10,000 to FF on completion of the fence.

After Mrs Patel had signed the contract, she expressed concern that the fence may not be strong enough to prevent the alpacas from escaping. FF assured her that their fences were 'animal proof.'

a) FF had completed 800 metres when it ran out of the special titanium fence posts needed for the rocky soil. FF erected temporary fencing along the uncompleted length and requested payment of $10,000, which Mrs Patel refused to pay. FF has subsequently received a new shipment of the posts, but Mrs Patel is refusing to allow them onto the property to complete the fence, as she fears the fence is not strong enough.

Required

Advise FF if Mrs Patel is required to pay FF for the fencing, and if so, how much. Refer to relevant cases and principles of contract law in your answer.

b) It has been a bumper season for alpaca fleece at Peru Farm. Alpaca wool is famous for its high quality and lack of allergens. Mrs Patel entered into a valid contract to ship a container of fleece to Hans, a German buyer. Hans and Mrs Patel agreed that the container would be loaded onto a ship in Melbourne which would cross the Indian Ocean and pass though the Suez Canal on its way to Hamburg in Germany. The trip is scheduled to take three weeks, arriving in time for Hans to create alpaca fleece jumpers for the northern hemisphere winter season. Unfortunately, however, there was an unexpected surge in pirate attacks on shipping and the ship had to be re-routed around the bottom of the African continent. This has added an extra month to the trip, severely impacting on Hans' plans for the alpaca fleece that he needs to fulfil a contract with a glove company.

Required

Advise Mrs Patel whether the delay would entitle Hans to set aside the contract. Refer to principles of contract law in your answer (and assume that Australian law applies).

c) The pasture at Peru Farm has become too sparse to feed the alpacas, so Mrs Patel needed to purchase supplemental grain to feed the alpaca herd. Mrs Patel told Jumbuck Foods Pty Ltd ('JF') that alpacas could only eat grains with a diameter of below 3 mm. Mrs Patel entered into a valid contract with JF to supply grain with individual particles of a dimension below 3 mm. When the grain was delivered, some grain particles were greater than 3 mm. Ravi was unaware that the alpacas could not eat larger grains and laid out the grain in the alpaca paddock. Many alpacas ate the oversized grains and, tragically, three alpacas died. Daisy, the champion female alpaca of Peru Farm, became ill and was unable to take part in the Coolibah Agricultural Show. Daisy has won many prizes in the past and Mrs Patel had high hopes of Daisy winning the $20,000 prize for Best Breeding Alpaca at the Coolibah Show.

Required

Advise Mrs Patel of any actions she may have against JF by referring to principles of contract law.

d) Ravi has worked for no wages for twenty-five years at Peru Farm. Mrs Patel owns Peru Farm and has often told Ravi that 'one day, Peru Farm will be yours.' She also told him it would be in his best interest if the profits from the alpaca farming get re-invested back into the business, so Ravi agreed to forgo a wage on the basis of these promises. As Ravi is very skilled in breeding alpacas, he has frequently been offered lucrative job opportunities at competing alpaca farms. However, Ravi has always turned these down on the basis that Peru Farm would one day be his.

Ravi has always been unlucky in love, and he had come to believe that he would be single forever. Happily for Ravi, love finally came his way and he is now engaged to Lucy. Unfortunately, Mrs Patel has taken a violent dislike to Lucy and told Ravi 'It's me or her.' Ravi chose Lucy and Mrs Patel has ordered him off Peru Farm, saying 'you will get nothing from me, Peru Farm will never be yours.'

Required

Advise Ravi of any legal interest he may have to the ownership of Peru Farm. Refer only to relevant cases and principles of general law.