Question
Peter owns a commercial building in Simsville.As part of his retirement planning Peter has been in negotiations with BigGrocery who are very interested in a
Peter owns a commercial building in Simsville.As part of his retirement planning Peter has been in negotiations with BigGrocery who are very interested in a long-term lease of the Peter's building.The parties have been negotiating for approximately three months and have agreed on most of the terms.
BigGrocery have assured Peter on numerous occasions that they are going to lease the building for at least five years and that their solicitors have drafted a lease agreement.Peter expects to receive a copy of the agreement in the coming days.
BigGrocery require some alterations to the interior of the building and have asked Peter if he could start on the demolition work as soon as possible.Peter engages Demos R US to complete the alterations required.The work is completed and Demos R US invoice Peter the agreed fee of $8,800 inclusive of GST.
Peter is yet to receive the draft agreement.
A few days later BigGrocery contact Peter and explain to him that they have changed their minds and will not be leasing his building.Instead, they have decided to lease a different building.Understandably Peter is upset.At no point in the negotiating process were contracts exchanged.
Peter has contacted your office seeking advice on what options he has available to sue BigGrocery for breach of contract?Your advice should include references to appropriate case law.
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