Winnie Tse is an ambitious fashion designer whose aim is to design her own clothes and sell them through a retail outlet owned by her. She decided to look for suitable premises from which to sell her clothing designer goods. However, since she knew she would not be able to finance this entire business, she asked her mother for help.

Her mother, who owned many properties, agreed to lease one of her buildings to Winnie at half the rental she would normally charge. Winnie inspected the premises and told her mother that she would like to make some alterations to the layout so as 'give the clothing shop a better look.'

Winnie told her mother that she wanted to start on the renovations immediately and would speak to the local Council in Chatsworth to get the necessary permits. Winnie also agreed that she would pay for these alterations which, after quotes had been given, were calculated at $50,000. Winnie said, however, that she did not want to start on the renovation project unless her mother was certain that the property was for rent at the amount agreed.

Winnie's mother said she would let Winnie know in the next few days if she changed her mind about renting the building. Winnie also said that the opening of the shop on the date agreed to in the proposed lease would help her to market her clothing designs from which she expected to receive a healthy financial return. It was estimated that the renovations to the shop would take six months, by which time Winnie would have designed and created the required stock for sales.

A week after Winnie spoke with her mother, Winnie started on the renovation project, having heard nothing from her mother. After several weeks after the renovation work began, Winnie noticed her mother drive past the building in which the renovations were in progress.

Before the lease to rent the building was signed and just as the renovation work was almost complete, Winnie's mother advised her that she, as the potential landlord, no longer wished to continue with the arrangement.

Advise Winnie as to her legal rights with reference to relevant principles of contract law. Give reasons for your answer based on contract law and relevant precedents

Topical

1 Introduce

2 Relevant facts of the case

3Legal issues

4 Decision

5 Reasons for the decision

6Analysis of judgment

7Conclusion

8Bibliography