Question 1 An elderly Perth widow invited her niece to leave the Philippines to come to Australia. The plan was for the niece and her husband to move into the widow's mansion to keep the Widow Company for the remainder of her life. The couple was promised that the entire widow's property (a substantial amount) would be willed to them. The niece left her lucrative acting career, and her husband resigned from a high government position, to make the move. After a few months of sharing the house, the widow became annoyed, ordered the niece and her husband to leave, and changed her will, leaving everything to the various charities. Can the couple take court action to enforce the agreement with the widowed aunt? Support your answer with a relevant case. Use the IRAC method to answer the question. (10 marks) Question 2 Libby, a motor mechanic, spilled some engine oil near the open entranceway to his workshop. He immediately scrubbed it with detergent, but the surface remained slightly oily. Imagine that the following accidents took place. Clearly explain with appropriate references whether Libby would be liable for the resulting damage in each of the following situations. (i) Libby went to get some sand from the back of the workshop and the phone rang. Not wanting to miss a customer, he returned to answer the call. His back was turned for 30 seconds. During that time Nancy, a customer, entered. She slipped and broke her leg. (2 marks) (ii) Nancy's daughter, who was a very nervous person, was walking behind her mother. She became very upset when she saw her mother fall because she knew that serious damage could result. (2 marks) (iii) Libby wrote out a sign in very large bright letters which said 'Warningslippery floor. Do not enter and fixed it to the side of the workshop entrance. Connor, a customer with very poor eyesight, missed the sign, strode in, slipped, and broke his leg. (2 marks) (iv) Connor screamed after his fall. This caused a customer who was filling his tank at the self-serve pump to spin round involuntarily and spray petrol into the eyes of another customer, who ran in shock down the driveway of Libby's garage. The driver of a Porsche who was entering the driveway swung his wheel to avoid the customer and crashed into a brick wall, causing more than $15,000 damage to his car. (2 marks) 3 Question 3 Josie is a Sole Trader who runs a chain of restaurants, agrees to lease commercial premises for five years. After she had signed the lease agreement she asks the landlord if the air conditioning system in the premises was capable of handling the load from the type of business she was running. The landlord promised that "the system is brand new and perfect for her type of business and her customer would have nothing to complain about. The system cannot cope with cooking fumes from the kitchen and customers were complaining about the unbearable humidity in the restaurant. Josie spends another $10 000 to install a proper system and she is suing the landlord for breach of contract. Explain whether Josie would succeed in her legal action against the landlord. Support your answer with a relevant case. Use the IRAC method to answer the question. (10 marks) Question 4 Mary visited Rooney at home and was overwhelmed by the structural beauty of the house, the peace, and the quiet environment at the property. The view of the bay from Rooney's property added to the attraction the property drew. Some months after Mary's visit, Rooney received the approval letter from the Australian embassy regarding his application to migrate. Rooney knew he has to sell all his assets in Fiji. On the 1st of November Rooney sent a letter to Mary offering to sell the property to her for $175 000 (which is a lot less than the actual value) and Mary would have to make a payment of at least $25 000 to secure the contract. Rooney states that he would keep the offer open for a week. On the 2nd of November Pedro, Rooney's best friend, hearing Rooney's migration approval, visits Rooney's house and offered him $250 000 for the property. Rooney agreed to sell it to Pedro for that price. In the afternoon of the 2 nd of November Rooney rings Mary's office to inform her of his decision to sell the property to Pedro. Mary was homesick so Rooney left the message with Mary's secretary explaining the situation. Mary's secretary then rang Mary at home and relayed the message. Mary was still homesick on 3rd November when she receives Rooney's letter offering to sell the property to her for $175000. She immediately posted her acceptance together with a cheque for $50 000. On 5th November Rooney received Mary's letter. Rooney is concerned and seeks your advice as to whether he has formed a contract with Mary. Advise Rooney. Use the IRAC method to answer the question. (10 marks) 4 Question 5 Brent is a very talented accountant with ambitions to become the general manager of his firm. The directors advise Brent that he will be promoted as soon as he obtains a Master of Business Administration degree at his own expense. Brent spends a considerable sum of money and every spare minute of his life studying and manages to finish the qualification within two years. Although the directors know about Brent's graduation they appoint someone else as general manager. Explain whether Brent would succeed in a legal action based on promissory estoppel against the company. Use the IRAC method to answer the question. (10 marks)