Reece has a specialist car dealership.He buys old cars, refurbishes them and then sells them. He also hires out cars.

Reece is restoring an old jeep.It requires a special type of shock-absorber to enable it to travel over rough ground. Reece phones Shocks Are Us. He says to Kyle, the manager: "I need four shock absorbers which can be used for off-road driving" Kyle consults a brochure published by the shock absorber manufacturer and "Says the D200 shock absorber can be used for off-road driving.". Reece then agrees to buy four D200 shock absorbers for $ 150 each.When he installs them on the jeep and takes it for a test drive over rough country, the shock absorbers give way and the jeep crashes down, causing $ 3 000 worth of damage to its body. It turns out that when Kyle gave Reece the information over the phone, she had been looking at the wrong page of the brochure.Had she looked at the correct page, she would have seen that the D200 is not suitable for off-road driving.

Reece operates his business from a premises which he has leased from Peterio for $ 5 000 per month since January 2016.The lease specifies that the rent is to be paid to Peterio every six months and that it will increase every year by 10%. Reece pays Peterio $ 20 000 in June 2016 and December 2016, but then tells Peterio that he is having financial difficulties and needs every dollar he can to buy equipment.Peterio says "OK, I will let you off paying the increase this year". Reece is pleased with this, and uses the money he would have had to spend on the rent increase to buy new tools. In June 2017, Reece pays $ 20 000 to Peterio, but Peterio contacts him demanding an additional $ 3 000. When Reece refers to their earlier conversation, Peterio says "Whatever I said, the lease you signed specifies that the rent will go up by 10% each year".

James is a collector of vintage cars.He sees that Reece has a 1979 Mercedes 450SEL for sale on his website, priced at $ 20 000. James sends Reece an email saying "I offer to buy the 1979 Mercedes 450SEL for $ 18 500". Reece sends an email back saying "Sorry, that is not enough, but I will sell it to you for $ 19 000". James sends an email back saying "No, I can't pay that". Reece then sends an email saying "OK, I accept your oriEmilyl offer of $ 18 500", but when he brings the car to James's house, James refuses to accept it or to pay the money.

When Reece goes on holiday, Robert looks after his car lot. Robert doesn't have a car. However, a friend of Robert's is about to visit town and he wants to be able to drive her around. Robert goes to Reece and says "Can I hire one of your cars?" Reece says "The usual price is $ 50 per day, but because you looked after my car lot in August, you can hire it at no cost. You can pick it up on Monday". Robert is very pleased and readily agrees, but when he comes to pick up the car, Reece says that he has hired it out to a cusJameser. Robert says that Reece has breached their agreement.

Advise Reece of his legal position in relation to each of these four scenarios. You should assume that all facts given would be provable if the matters came to court. You should also assume that when any of the people mentioned conduct business, they do so as sole traders, not through corporations.

You must use the ILAC method when answering problem questions.