Question
Question 1 (20 marks) Jairus is a director of a company called Big Vision Pty Ltd. Jairus needs to lease office premises to run the
Question 1 (20 marks) Jairus is a director of a company called Big Vision Pty Ltd. Jairus needs to lease office premises to run the business from. Jairus approaches a landlord of existing premises which Jairus thinks would be perfect to run the company from. The landlord, Rob Dodger, tells Jairus that the premises are currently leased to other tenants but that the lease to those tenants will expire in two months. Rob assures Jairus that he would then be happy to enter into a fixed term five-year lease contract with Jairus. Jairus shakes hands with Rob and begins to organize for the transfer of Big Vision company business from its old address to the new premises. Jairus notifies the Australian Securities Investment Commission of the changes and executes necessary documentation. Jairus contacts all the companys customers and advises them of the companys new future address. Jairus also pays an Interior Designer in advance, who is going to design and refurbish the interior of the new premises to suit the market image of his company. In the meantime, Rob Dodger is negotiating with his current tenants for them to extend their current lease at an increased price for a further ten years. He knows they are considering paying a higher rent and he is waiting for them to make up their mind before he commits to Jairus. He deliberately delays signing any contract with Jairus, but he promises to do so telling Jairus dont worry, everything is fine, we will sign shortly. It transpires that Rob actually re-leases the premises to his current tenants instead of entering into a lease contract with Jairus. Jairus is disappointed and seeks your advice. REQUIRED: With reference to relevant legal principles, use the IRAC legal problem-solving approach to advise Jairus on whether he can enforce the promise against Rob Dodger. Please explain fully, using relevant case law.
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