Task:Assignment consisting of two main questions. (Question 2 has two sub-parts).

Question 1

'In contrast to express terms found in a contract, implied terms can arise in a variety of ways and are beneficial to at least one of the parties to the contract. Some contracts may contain both express and implied terms, but the ways these two types of terms operate are significantly different from one another'.

Required

Discuss this statement by reference to cases and legislation, providing examples of each.

You need to justify your view as to whether these two types of terms are 'significantly different from one another'.

In addition, include as an example in your discussion, reference to the types of terms indicated in the facts of question 2.

Question 2 (20 marks)

The local coffee shop "Kaffee Shoppe" near VU does a great trade and see lots of students (and lecturers) come for coffee and food.

Caitlyn regularly goes to Kaffee Shoppe for her daily Kombucha. She likes that it has a selfservice facility where customers have the option of selecting a drink or food item from a menu

displayed on a touch screen located near the counter. To choose your order, you only have to touch an image or icon showing the desired product, and then touch a virtual 'OK' button to submit an order. The order is relayed to the front counter where the staff can view it on their own screens.

The self-service process was implemented by the coffee shop to save time during rush hour and is very popular. The coffee shop sees most customers using it for takeaways, whilst the rest eat in. Customers choose "Eat in" or "Takeaway" when they place their order. Customers using the touch screen are immediately issued with a printed ticket containing an order number and the price payable at the front counter.

Customers present these tickets to the cashiers who confirm the relayed order appearing on their screens. At this point, the customers pay for their purchases and await delivery. When Caitlyn reached the front counter, she paid $2.50 for the green tea she had ordered and then took a seat waiting for staff to bring it over.

The week after, Caitlyn returned and ordered her usual Kombucha, and as a splurge, ordered a vegan pok bowl via the self- service facility. The total cost was $20.00 which she happily paid. As Caitlyn sat in Kaffee Shoppe, choosing the best Instagram filter to post the photo of her pok bowl, and sipping her Kombucha, she took a bite of her tofu struck something hard, breaking a tooth. She examined the chewed remains and found a piece of metal that had somehow been lodged in her tofu.

Caitlyn alerted the manager Karen to this incident and demanded compensation for her anticipated dental repair. Karen, the manager, expressed regret and directed Caitlyn to the ticket she had received which on its reverse side, contained a clause stating:

Kaffee Shoppe accepts no responsibility or liability for any injury caused to customers by consumption of food or drink sold.

Caitlyn, outraged said, 'I'm a consumer and I have rights!'

Question 2:

Required

(a) Explain how the contracts Kaffee Shoppe made with Caitlyn were formed.

You will need to address all the essential elements of a contract (including consideration) as well as analyse the legal status of each step or event that led to the caf supplying Caitlyn with its products. Refer to relevant case law. In this part, do not discuss the impact, if any, of consumer protection laws.

You may, but are not obliged to use the IRAC format for this part, given that each step or event must be analysed separately.

(b) Explain whether Kaffee Shoppe is legally entitled to rely on the clause printed on the ticket to avoid liability in relation to Caitlyn's mishap.

For the purposes of this part you should consider both common law as well as consumer protection legislation (confirming whether Caitlyn qualifies as a 'consumer').

Please use IRAC format for this part.