Question 1

Dave is a bachelor who lives in Sydney. He was a loner and in ill health. He contacted his sister, Keren, in Oxford, England and asked her to move to Sydney to help look after him. He promised that if she did, that he'd leave all his property to her on his death. Keren agreed.

She resigned from her job, sold her house, and moved away from her friends. She arrived in Sydney and began to care for her brother. A few months later, they had a falling out. Dave sold his property and disinherited his sister. His sister sued for breach of contract.

Advise Keren Cite a relevant case in your answer.

Question 2

An elderly Lebanese couple, with little understanding of English or formal education, signed a mortgage over their home to Cheatem Bank, as security for payment of the debts of their son's business. Their son, Ali, led them to believe that his company was sound when in fact it was in serious financial trouble.

When Ali's business went into liquidation, Cheatem Bank tried to exercise its rights under the mortgage/guarantee.

Advise Ali's parents Cite a relevant case in your answer

Question 3

Brad and Jane operate a pizza business. The wood-fired oven has just blown up and it needs to be replaced. Brad and Jane immediately contact an oven wholesaler, Angie, and tell her that they require a wood-fired oven installed right away because they need it to make pizzas, their core business. Angie tells them it will be delivered and installed within 24 hours, by Friday before a long weekend. Angie then goes to a long lunch with lots of wine and forgets about Brad and Jane's urgent phone call.When they call again on Tuesday Angie is very apologetic and sends the oven around to be installed. Brad and Jane have had to close their business for 4 days and nights, losing a great deal of money. They want to sue Angie for their loss of profits.

Advise Brad and Jane

Question 4

Gulliver went on an organised bus tour for his annual holidays. The length of the tour was 23 days. The first 11 days were fantastic and more than exceeded his expectations.

However, on the twelfth day the bus crashed, trying to avoid a wombat waddling across the highway, injuring Gulliver so he could not continue his tour on a replacement bus. Gulliver wants to sue the bus tour company for the full amount of his tour cost.

Advise Gulliver Cite a relevant case in your answer

Question 5

Amelia owes Biggles $1,000 plus interest of $120 under a loan contract. The money is due for payment on Friday.

On Wednesday Amelia tells Biggles she has lost her job and cannot pay the money. Biggles tells Amelia if she sells her new Apple notebook (laptop) he will take the proceeds of the sale in full satisfaction of the debt - and will not take legal action to recover any shortfall. Amelia was using her notebook to retrain for another job, but reluctantly agrees to sell it.

Amelia gives the proceeds of the sale, $900, to Biggles. Biggles then demands the balance of $220. Is Biggles legally entitled to go back on his promise?

a) Explain the common law position

b) Explain any equitable defense Amelia may have to action by Biggles. Cite a relevant case in your answer.

Cite two relevant cases in your answer.

6. Rosella Ltd, a large emporium that specialises in selling electronic goods, distributed a catalogue in which it mistakenly advertised a plasma television for $200 instead of $2,000.

Tom collected the catalogue from his letterbox and immediately noticed that the plasma television was an absolute bargain. Tom rushed down to Rosella Ltd and asked for a plasma television as advertised in the catalogue.

The young sales assistant informed Tom that there was a mistake in the printing of the catalogue and that the price is in fact $2,000.

Tom became upset and insisted that the plasma television be sold to him for the advertised price of $200 or he will take legal action against Rosella Ltd.

Outline a response to the following.

a)

b)

Rosella Ltd now comes to you for legal advice about whether they are contractually obliged to sell the plasma television to Tom for $200. That is, is there a contract between Rosella Ltd and Tom?

Advise Rosella Ltd. Cite a relevant case in your answer.

Might Rosella Ltd have breached the Australian Consumer Law (ACL)? Explain. Cite relevant provisions of the ACL in your answer.