Using IRAC method (Issue, Rule, Application and Conclusion), please answer the three questions below: (no need to give separate headings while answering like "issue", "rule" etc...)

Question 1 (10 marks)

XYZ Pty Ltd (XYZ) called for tenders for supplies of seedlings for its' iceberg lettuce farm with a closing date of 30 June.

The following tenders were submitted:

1. Lettuce R Us Pty Ltd hand-delivered its tender on 29 June to the head office of XYZ.
2. We Grow Pty Ltd posted its tender on 29 June. This letter arrived at XYZ head office on 1 July.

Lettuce R Us Pty Ltd's tender was the lowest of the two, however, XYZ awarded the contract to We Grow Pty Ltd because of their outstanding reputation. XYZ posted a letter to We Grow Pty Ltd advising that its tender was successful. Unfortunately, this letter never reached We Grow Pty Ltd because it was accidentally destroyed by a disgruntled postal worker who had just been made redundant. Since We Grow Pty Ltd had not heard from XYZ, it instead entered into a contract with another grower and committed its full stock of seedlings to this contract.

XYZ became aware of the full situation concerning We Grow Pty Ltd. It seeks advice concerning its contractual position in relation to both tenders.

Question 2 (10 marks)

Joseph leased a shop in the Central Shopping Centre for the past three years. Joseph is very concerned about his health and he has been diagnosed as suffering from a disease that will result in him requiring constant care in the near future. The lease on the shop was about to expire and the manager of the shopping centre, Thomas, told him that he had 'better decide quickly' whether he wanted to renew his lease because there were two other potential tenants who would take his space 'at a moment's notice'. Despite being aware of Joseph's illness and needs, Thomas would only offer Joseph a new five-year lease at a substantially higher rent. Joseph really wanted to retire to look after his health but felt like he could not afford to give up the income from the shop. He reluctantly signed the new lease. One year later Joseph received a large payout from a legal claim and could now afford to retire.

Advise Joseph whether he is able to avoid the lease at common law.

Question 3: (10 marks)

Michael is a director of Road Bikes Pty Ltd (RB) which has developed sophisticated engineering for manufacturing high quality handmade road bikes. RB has attracted attention from professional and amateur cyclists' around the State of Queensland. Michael is involved in a serious cycling accident and is left no choice but to sell RB. George is a world champion cyclist and is immediately interested in purchasing the business.

George prepares a contract for the purchase of RB and hands the contract to Michael. The contract includes a term that would prevent Michael from opening another road bike manufacturing business anywhere in Australia for the next 25 years. Michael and George sign the contract.

Michael quickly recovers from his accident and wants to know whether there is any way he can set up a new bike manufacturing business under common law. Advise Michael.