Nina Madan runs a private hospital in Karratha. Due to the surge of COVID-19 in the area the hospital starts receiving more patients and in less than a week 85% of inpatient beds become occupied by COVID-19 patients. Realising that the hospital needs to increase its bed capacity Nina starts shopping around for hospital beds. On 2 January Nina sees the following posting on Hospital & Healthcare Magazine: GEWO Manual Hospital Beds. Our range of beds are created with patient health and comfort in mind and cater to the needs of all types of hospitals and medical facilities. GEWO Manual Hospital Beds adopt a high quality 1.2mm cold-rolled steel plate and employ six aluminium retractable guardrail pillars with locking and anti-pinch function. Each bed going for $2000 with mattress included. Delivery time: 10-20 working days after payment receipt is confirmed. Nina continues to shop around for a few more days until she decides that the GEWO beds would be the best suit for her hospital. On 8th January Nina sends an email to GEWO Ltd stating: I am looking to buy 20 (twenty) GEWO Manual Hospital beds. Could you advise on any bulk discounts available for such a large order. Two days later on 10th January Nina receives an email from GEWO Ltd stating: The GEWO Manual Hospital Bed goes for $2000 per bed. However, we can give you a 10% bulk discount per bed for orders of 20 or more beds. Nina takes some time to meet with the hospital staff to decide on spacing for the beds. However, on 15 January Nina receives an email from GEWO Ltd stating: Owing to rising international prices for hospital beds we have reviewed our pricing and discount policy. GEWO Ltd will no longer provide our customers with bulk discounts. All GEWO Manual Hospital beds will retail for a fixed price of $2500 per hospital bed. No bulk discounts will be provided. The email also contained an order statement which outlined that GEWO Ltd is prepared to sell 20 GEWO Manual Hospital beds for a total price of $50,000. Attached to the statement was a form requiring Nina to verify the payment details to commence processing of the order. Nina is upset with the sudden change in pricing and on 18th January she writes back to GEWO Ltd confirming her order of 20 GEWO Manual Hospital beds for a total price of $36,000, which covers the price per bed and 10% bulk discount given to her in the email sent on 10th January. She fills out the payment details specifying that the payment should be for just $36,000. On 20 January Nina receives a response email from GEWO Ltd rejecting her form and payment, with a statement insisting that they will not process her order for 20 GEWO Manual Hospital beds until she fills out a payment of $50,000. Nina is not sure about the outcome of her communications with GEWA Ltd regarding the 20 GEWO Manual Hospital beds and seeks your advise on the matter. Advise Nina on the legal implications of her discussions with GEWA Ltd. Restrict your research to legal principles and cases covered from session 1 4. [30 Marks]

sample Answer Structure

Students are required to use the IRAC legal problem solving format in answering the question.

what is the issue?

What is the Relevant Law?

Apply the law to the facts

Conclusion