Question 4:(ILAC 1 of 2)

Carol, the owner of a racehorse named "Grey Lightning" approached Bill, who had owned a property in Mudgeeraba for 5 years, as to the possibility of her horse grazing on Bill's land in return for a fee. Carol had heard that the grass in Mudgeeraba was rich in a certain (legal) stimulant which would enhance the horse's racing ability. When Carol asked Bill whether the soil on the land contained the stimulant in question, Bill replied "yes" and assured Carol that the grass would be appropriate for the horse's needs.

The parties immediately entered into a written contract which stated that Carol would pay Bill $5,000 per year to allow her horse to graze on Bill's land, but it was silent about the stimulant and the quality of the soil and grass on Bill's land. It is later discovered that the soil was poor, there is no stimulant and Carol's horse has been in poor health since.

Carol wishes to sue Bill for $10,000 as compensation for the vet bills she has had to pay as a result of the horse's poor health.Advise Carol whether she can claim a breach of collateral contract.

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Question 5:(ILAC 2 of 2)

Ben decides to employ Aidan's band, known as 'Rhythm and Rock', to play at the Nathan Hotel on 1 April 2019. Ben and Aidan meet to negotiate the terms of the contract.After both parties have agreed on the terms, they both sign the contract.Unfortunately, neither of them realised that during the meeting, the hotel had been hit by a meteorite and had burned down!

What is the legal principle that applies to this situation and what must the plaintiff (Aidan) prove?Make sure you mention one key case that applies to this question.

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