Question 1 Monica was going away on a holiday for 1 year and asked her best friend Jane to rent out her unit while she was away. In the power of attorney granted to Jane, Jane was expressly given the authority to sign leases with tenants on Monica's behalf. Monica was taking a round-theworld voyage on her yacht. One day Jane went to inspect the house and found that a tree had fallen in the garden. On further inspection she found that it was infested with termites. She hired a pest control firm to spray the garden and the house and asked a gardener to dispose of the tree. The bills came to $2,000 and $500 respectively. Jane also felt that the garden needed a water feature and asked the gardener to set up a new flower bed which cost $3,000. Jane showed the pest firm and the gardener the power of attorney and signed all the contracts "as letting agent on behalf of Monica". Jane paid all the bills and sought reimbursement from Monica. Monica refused to pay her saying: "I never authorised you to organise any of these services. In fact, I always use my brother who doesn't charge me anything to do with the garden". There was no provision in the agency agreement that stated that gardening was to be referred to Monica's brother. Jane has not paid the contracts and the pest firm and gardener are now planning to recover from Monica. a) Advise Monica. b) How would your advice change if instead of a new flower bed there was an existing flower bed which needed to be weeded and several new flowers planted which the gardener completed at a cost of $800? Question 2 Peter, an oil dealer in Sydney, authorized Alice, an agent, to buy oil from OffShore Limited, a Western Australian company. He instructed Alice not to buy above $15 a barrel. Alice in fact entered into a contract with Off-Shore for 20,000 barrels at $18 per barrel on 30July. She signed the contract as "agent on behalf of Peter". On 1 August , Peter informs Alice that he will not recognise the transaction and tells Alice to inform Off-Shore that he will not be buying the oil". a) Discuss what issues arise on these facts. b) If the price for oil suddenly increased to $40 a barrel on 2 August, can Peter enforce the contract against Off-Shore Limited? c) If the facts are changed and Alice had signed the contract on 30 July in her own name and did not inform Off-Shore that she was an agent, how do these new facts change your discussion