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DIPLOMAINLAWLEGAL PROFESSIONADMISSION BOARD

LAW EXTENSION COMMITTEE

LAW EXTENSION COMMITTEE SUBJECT GUIDE

04 CONTRACTSWINTER SESSION 2014

This Guide includes the Law Extension Committees course information and teaching program and theLegal Profession Admission Boards syllabus The syllabus is contained under the heading!Prescribed Topics and Course "utline# and has been prepared in accordance with $ule %&'(a)of the Legal Profession Admission $ules %**+

Course Description and O!ecti"es #Lecturer #Assess$ent #%&Septe$er &'#( E)a$ination &Te)ts and Materia*s +Lecture Pro,ra$ +%(Wee-end Sc.oo*s # and & /%0Co$pu*sor1 Assi,n$ent 0Assi,n$ent 2uestions 0Prescried Topics and Course Out*ine 3%#(

Pro*e$ 2uestions #/%&4

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LAW EXTENSION COMMITTEE WINTER 2014

04 CONTRACTS

COURSE DESCRIPTION AND OBJECTIVES

T.e *a5 re*atin, to contracts is one o6 t.e pi**ars o6 t.e co$$on *a5 s1ste$7 An understandin, o6 t.easic e*e$ents o6 contract *a5 is t.us a critica* pre%re8uisite 6or t.e stud1 o6 a nu$er o6 *ater su!ects9inc*udin, Con"e1ancin,9 Co$$ercia* Transactions and Industria* La57 T.e course ai$s to pro"idestudents 5it. an understandin, o6 t.e asic princip*es o6 contract *a5 5.ic. app*1 to near*1 a**contracts7 In 6u*6i**in, t.is ai$9 t.e course 6ocuses pri$ari*1 on a stud1 o6 re*e"ant case *a5 and statute*a57 T.e course co"ers t.e e*e$ents o6 6or$ation o6 contracts9 ter$s o6 a contract9 $atters a66ectin,consent to a contract9 disc.ar,e o6 contracts9 re$edies9 and t.ird part1 ri,.ts7

Specia* princip*es t.at app*1 to speci6ic t1pes o6 contracts are dea*t 5it. in *ater courses7

T.e o!ecti"es o6 t.e course are:

;a< to pro"ide students 5it. an understandin, o6 asic princip*es o6 contract *a5= and

;< to de"e*op in students an ai*it1 to ana*1se 6act situations and correct*1 identi61 t.e re*e"antprincip*es o6 contract *a5 t.at are app*ica*e to t.e reso*ution o6 pro*e$s raised 1 particu*ar6actua* situations7

LECTURERS

Greg Tolhr!"# $D%&L'() SAB# LLM $S*+,e*)# Ph+ $UNSW)Gre, To*.urst is a Pro6essor o6 Co$$ercia* La5 at t.e Facu*t1 o6 La59 >ni"ersit1 o6 S1dne17 ?e is a*soa consu*tant at ?erert S$it. Free.i**s7

El%!'-e"h Pe+e,# BA .o,! $S*+,e*)# LLB .o,! $S*+,e*)# Ph+ $C'/-r%+ge)E*isaet. Peden is a Barrister and Pro6essor o6 La5 at t.e Facu*t1 o6 La59 >ni"ersit1 o6 S1dne17

.ele, S',+er! LLB .o,! 1A $S*+,e*)# BA $So"her, Cro!! U,%er!%"*)# M'!"er o M!% $W%"hD%!"%,"%o,) %, M!%olog*# C',-err' Shool o M!%# The A!"r'l%', N'"%o,'l U,%er!%"*?e*en Saunders .as tau,.t Contract La5 at T.e Austra*ian Nationa* >ni"ersit1 and S1dne1 >ni"ersit17

ASSESSMENT

To e e*i,i*e to sit 6or t.e Board@s e)a$inations9 a** students $ust co$p*ete t.e LEC teac.in, and*earnin, pro,ra$9 t.e 6irst step o6 5.ic. is to ensure t.at 1ou .a"e re,istered on*ine 5it. t.e LEC ineac. su!ect 6or 5.ic. 1ou .a"e enro**ed 5it. t.e Board7 T.is ,i"es 1ou access to t.e 6u** ran,e o6*earnin, resources o66ered 1 t.e LEC7

To re,ister 5it. t.e LEC9 ,o to 5557s1dne17edu7au*ecand c*ic- on t.e WEBCAMP>S *in- and 6o**o5t.e instructions7 Detai*ed ,uides to t.e Weca$pus are contained in t.e $ateria* distriuted 1 t.eLEC9 in t.e Course ,nformation 'andboo-9 and on t.e Weca$pus7

El%g%-%l%"* "o S%" or E3'/%,'"%o,!

In accordance 5it. t.e Legal Profession Admission $ules9 t.e LEC $ust e satis6ied 5it. a student@sper6or$ance in a su!ect in order 6or t.e student to e e*i,i*e to sit 6or t.e e)a$ination9 conducted 1t.e Le,a* Pro6ession Ad$ission Board ;LPAB

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A!!%g,/e,"! '! &'r" o "he Bo'r+! E3'/%,'"%o,!

Assi,n$ent resu*ts contriute &' to t.e 6ina* $ar- in t.is su!ect7

T.e La5 E)tension Co$$ittee ;LEC< ad$inisters t.e settin, and $ar-in, o6 assi,n$ents7 T.e LECen,a,es t.e LPAB@s E)a$iners to assess or super"ise t.e assess$ent o6 assi,n$ents7

S-/%!!%o,

Assi,n$ents $ust e su$itted 1 ##:/p$ on t.e due date un*ess an e)tension .as een ,ranted7E)tensions $ust e re8uested 1 e$ai* prior to t.e due date7 Speci6ic supportin, e"idence $ust epro"ided7 Assi,n$ents t.at are $ore t.an ten da1s *ate 5i** not e accepted7 Late assi,n$ents attracta pena*t1 o6 one $ar- out o6 &'9 or / o6 t.e tota* $ar-s a"ai*a*e9 per da17

A!!e!!/e,"

Assi,n$ents are assessed accordin, to t.e Assi,n$ent Gradin, and Assess$ent Criteria out*ined int.e Guide to the Presentation and .ubmission of Assignments7 Prior to t.e e)a$ination9 assi,n$ents5i** e returned to students and resu*ts posted on students@ indi"idua* resu*ts pa,es o6 t.e LECWeca$pus7 Students are responsi*e 6or c.ec-in, t.eir resu*ts screen and ascertainin, t.eir

e*i,ii*it1 to sit 6or t.e e)a$ination7

Re%e(

W.ere a student@s o"era** $ar- a6ter t.e e)a$ination is et5een ('%(9 t.e student@s assi,n$ent int.at su!ect 5i** e inc*uded in t.e Re"isin, E)a$iner@s re"ie57 T.e 6ina* e)a$ination $ar- isdeter$ined in accordance 5it. t.is re"ie57 Assi,n$ent $ar-s 5i** not ot.er5ise e re"ie5ed7

SEPTEMBER 2014 EXAMINATION

Candidates 5i** e e)pected to .a"e a detai*ed -no5*ed,e o6 t.e prescried topics7 A detai*ed out*ine

o6 t.e prescried topics is set out e*o5 under t.e .eadin, Prescried Topics and Course Out*ine@7Candidates 5i** e e)pected to .a"e $ade a stud1 o6 t.e prescried $ateria*s in re*ation to t.osetopics9 and to .a"e ana*1sed t.e cases and statutor1 pro"isions re6erred to in t.e La5 E)tensionCo$$ittees course out*ine7

T.e e)a$ination 5i** consist o6 t.ree 8uestions7 Students 5i** .a"e to co$p*ete a** t.ree o6 t.e8uestions7 A** 8uestions 5i** e o6 e8ua* "a*ue7

A** t.ree 8uestions 5i** e pro*e$%t1pe 8uestions7

T.e e)a$ination 5i** constitute 4' o6 t.e 6ina* $ar- in t.is su!ect7

T.e e)a$ination 5i** e a c*osed oo- e)a$ination7 A case *ist 5i** appear in t.e e)a$ination7

Ple'!e ,o"e5 All 6e!"%o,! %, rel'"%o, "o "he e3'/%,'"%o, !hol+ -e +%re"e+ "o "he Leg'lProe!!%o, A+/%!!%o, Bo'r+# ,o" "he L'( E3"e,!%o, Co//%""ee7

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TEXTS AND MATERIALS

Cor!e M'"er%'l!

Guide to Presentation and .ubmission of Assignments;a"ai*a*e on t.e LEC Weca$pusni"ersit1 o6 S1dne1 $ain ca$pus7

:

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WEE; DATE ROOM LECTURE TOPICS

# Thr!1< M'*

CLT #/ #Pro6essorTo*.urst

IntroductionFact o6 A,ree$ent

& Thr!

22 M'*

CLT #/ &

Pro6essorTo*.urst

Fact o6 A,ree$ent

Certaint1 and Co$p*eteness

+ Thr!2= M'*

CLT #/ +Pro6essorTo*.urst

Consideration

( Thr!< J,

CLT #/ (Pro6essorTo*.urst

Estoppe*Intention to Create Le,a* Re*ationsWritin, Re8uire$ents

/ Thr!12 J,

CLT #/ /Ms Saunders

E)press ter$sI$p*ied Ter$s

0 Thr!1= J,

CLT #/ 0Ms Saunders

Meanin, o6 Ter$sConstruction o6 E)c*usion C*ausesPri"it1

STUD> BREA;5 S'"r+'* 21 J,e 2014 ? S,+'* @ Jl* 2014

3

Thr!10 Jl

TBA 3Ms Saunders

MisrepresentationMista-eDuress

4

Thr!1 Jl

TBA 4Ms Saunders

>ndue In6*uence>nconsciona*e ConductRescissionStatutor1 >nconscionai*it1 and >n!ust ContractsMis*eadin, or Decepti"e Conduct>n6air ter$s

Thr!24 Jl

TBA Pro6essor

Peden

Disc.ar,e 1 Per6or$anceDisc.ar,e 1 A,ree$entBreac. o6 ContractDisc.ar,e 1 Breac. o6 ContractDisc.ar,e 1 Repudiation

#' Thr!:1 Jl

TBA #'Pro6essor

Peden

Ter$inationDisc.ar,e 1 Frustration

## Thr! Ag

TBA ##Pro6essor

Peden

Da$a,es

#& Thr!14 Ag

TBA #&Pro6essor

Peden

Actions 6or Fi)ed Su$s and DetRecti6icationRestitution

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37(/p$%47(/p$ Ter$ination Tropical Traders Ltd 5 Goonan ;#0(< ###CLR (#

S'"r+'* 2@ Jl* 20145 700'/ ? ,oo, %, E'!"er, Ae,e Le"re The'"re $EALT)

47#/a$%7&/a$ Da$a,es Commonwealth 5 Amann A5iation=ictoria Laundry 5 9ewman ,ndustries

7+'a$%#'7('a$ Da$a,esActions 6or Su$s Fi)ed 1 t.eContractRestitution

:unlop Pneumatic Tyre Co 5 .elfridgePa5ey and /athews 5 Paul

#'7(/a$%##7//a$ Pro*e$ So*"in,

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PRESCRIBED TOPICS AND COURSE OUTLINE

LECTURE 1 $1< M'* 2014)

A%/! ',+ O-e"%e!

At t.e end o6 t.is *ecture students s.ou*d understand t.e 6o**o5in,:;a< t.e de6inition o6 contract=;< t.e sources o6 contract *a5=;c< t.e "arious c*assi6ications o6 contracts=;d< t.e asic princip*es re*atin, to ans5erin, pro*e$ 8uestions=;e< t.e nature o6 an o66er and t.e circu$stances in 5.ic. an o66er is $ade

Introduction to Contract LawTe)t: Radan H Goo*e19 C.apter # ;see ,enera**1 c.apters &9 +9 9 &09 &39 &4ect of Contracts loo-s at the following issues1;a< T.e de6inition o6 contract=

;< T.e sources o6 contract *a5=;c< T.e c*assi6ication o6 contracts7;d< Freedo$ o6 contract

a7 Capacit1 5.o can enter into a contract7 I**e,a*it1 and restraints o6 trade

Formation of ContractThe 2act of Agreement1 "ffersTe)t: Radan H Goo*e19 C.apter ( ;paras (7#%(73+ehamaPty Ltd

DISTINCTION UNDER EXAM CONDITIONSCo/&le"el* ',!(er! "he 6e!"%o, %, ', or%g%,'l or ,',"%%&'"e+ ('*

Contains stri-in, ori,ina*it1 or creati"it1 o6 approac. or ana*1sis7

De$onstrates e).austi"e or inno"ati"e researc.7

E)ceptiona**1 5e** 5ritten7

Is ot.er5ise e)ceptiona* in so$e 5a17

W.et.er or not B 5i** .a"e a cause o6 action 6or da$a,es 6or reac. o6 contract depends on 5.et.er t.e?eads o6 A,ree$ent is itse*6 an en6orcea*e contract7 Since A and B .a"e e)ecuted t.e ?eads o6 A,ree$entt.e1 t.e$se*"es $a1 .a"e co$e to an a,ree$ent9 and e)ecution e)cuses t.e need to ,o t.rou,. an o66erand acceptance ana*1sis to 6ind an a,ree$ent7 Moreo"er9 t.e *an,ua,e o6 t.e docu$ent re6*ects t.isconc*usion= it records t.e co$p*etion o6 ne,otiations 6or t.e ?eads o6 A,ree$ent@7 Ne"ert.e*ess9 as a $attero6 *a59 t.e parties $ust .a"e reac.ed a certain and co$p*ete a,ree$ent R7 >nder t.e o!ecti"e t.eor1 o6contract= it cannot e conc*uded t.at t.e parties .a"e reac.ed an a,ree$ent i6 it is i$possi*e to ascertaint.e $eanin, and *e,a* e66ect o6 t.e ter$s a,reed7 Moreo"er9 despite t.e e)ecution o6 a docu$ent9 t.ere 5i**e no en6orcea*e a,ree$ent i6 t.e contents o6 t.at docu$ent e"idence a positi"e intention not to contract7 Int.is case9 t.e deter$inin, 6actor 5i** e t.e e66icac1 o6 t.e ,ood 6ait. pro"ision7 To reac. and understand t.atpoint it is necessar1 to in"esti,ate so$e o6 t.e ear*ier pro"isions o6 t.e a,ree$ent7

C*auses #%+ o6 t.e a,ree$ent set out t.e asic o*i,ations o6 t.e parties7 T.e transaction in"o*"es t.e,rantin, o6 ri,.ts to te*e"ise t.e O*1$pic Ga$es7 Suc. a transaction 5ou*d u*ti$ate*1 re8uire t.e sett*in, o6

co$p*e) pro"isions under a 6or$a* contract7 T.e parties .a"e at $ost conc*uded an i$portant part o6 t.eirne,otiations 6ro$ 5.ic. t.e1 inti$ate t.e1 5i** not ,o ac- on: t.e1 .a"e a,reed on a asic pricin, structureand .a"e a,reed to ne,otiate e)c*usi"e*1 5it. eac. ot.er to 6ina*ise t.e dea*9 see .eppelt 7 .ons Ltd 5Commissioner for /ain $oads7 A*t.ou,. t.at does not e"idence a conc*uded contract to te*e"ise t.e ,a$es9it $a1 e enou,. 6or B at t.is point i6 t.ere is an e66ecti"e a,ree$ent to continue to ne,otiate7 T.at is9 t.e

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?eads o6 A,ree$ent i$pose no present dut1 un*ess it re8uires a co$$it$ent to ne,otiation9 as it $ere*1e)presses an a,reed e)pectation7

C*ause ( raises a pro*e$ 6or B as it s.o5s t.at t.e u*ti$ate price A $ust pa1 is at t.e discretion o6 B95it. no o"ious contro*s on t.at discretion7 Fro$ t.e aspect o6 "a*ua*e consideration t.is is t.e re"erse o6t.e situation in Placer :e5elopment Ltd 5 Commonwealth7 A .as pro$ised to pa1 ut t.e a$ount is at t.ediscretion o6 B9 not A7 Ar,ua*19 it is not a case o6 A pro$isin, to do not.in, nor a case o6 B pro$isin, to donot.in,9 t.e u*ti$ate consideration *1in, in t.e $utua* pro$ises contained in c*ause #7 Nonet.e*ess9 t.ere is

a stron, ar,u$ent t.at A@s consideration consists not on*1 in t.e pro$ises contained in c*ause # ut a*so inc*auses &9 + and (9 and t.at c*ause ( pro"ides i**usor1 consideration e"en t.ou,. it is B 5.o $ust deter$inet.e a$ount9 and not A9 ecause t.ere is no $ec.anis$ 6or 5or-in, out t.e 6i,ure= it is e8ui"a*ent to Apro$isin, not.in,7 I6 t.ese c*auses do re6*ect t.e intended consideration t.en it 5ou*d not e possi*e tose"er c*ause ( 6ro$ t.e $ore certain pro$ises in c*auses #9 & and + as t.at does not represent t.e intentiono6 t.e parties7 Moreo"er9 t.e ,rantin, t.is discretion to B $a1 e"idence a *ac- o6 intention to contract 5it. B7?o5e"er9 t.at *ac- o6 intention $a1 on*1 re*ate to t.e 6ina* transaction and does not ne,ate t.e possii*it1 o6an intention to contract on t.e ter$s o6 t.e ?eads o6 A,ree$ent7

T.e entire a,ree$ent is e)pressed to e su!ect to t.e e)ecution o6 a 6or$a* contract 5.ic. ,i"ese66ect to eac. o6 t.e ter$s@7 T.e e66ect o6 suc. pro"isions depends on construction9 t.at is9 t.e reasona*eintention o6 t.e parties9 see /asters 5 CameronSuc. pro"isions $a1 e"idence an intention to i$$ediate*1contract9 in so$e cases 5it. per6or$ance ein, suspended unti* suc. e)ecution9 or t.e1 $a1 e"idence a*ac- o6 an intention to i$$ediate*1 contract7 T.e pro"ision states t.at t.e 6or$a* contract is 6or t.e purposes

o6 ,i"in, e66ect to t.e ter$s set out in t.e ?eads o6 A,ree$ent7 So it is ar,ua*e t.at t.e parties intend t.att.e c*auses are to .a"e no e66ect unti* suc. a docu$ent is e)ecuted or at *east per6or$ance is suspendedunti* suc. ti$e7 Despite t.is9 t.e su!ect to pro"ision $a1 a*so e si$p*1 re6errin, to t.e $ore detai*edcontract9 it ein, a docu$ent t.at 5i** inc*ude t.e o*i,ations a,reed under t.e ?eads o6 A,ree$ent7Moreo"er9 conc*udin, t.at t.e su!ect to pro"ision i$p*ies a *ac- o6 intention to contract unti* e)ecutionappears at odds 5it. c*ause /9 5.ic. at *east i$p*ied*1 re8uires t.e 6urt.er ne,otiations o6 t.e parties 5.ic.$ust ta-e p*ace prior to t.e e)ecution o6 t.e 6or$a* contract7 It is at *east ar,ua*e t.at t.e su!ect to@pro"ision does not in.iit t.e ?eads o6 A,ree$ent ta-in, i$$ediate e66ect7

Despite t.e ao"e9 c*ause / does introduce t.e principa* di66icu*t1 6or B7 First9 it is dra6ted in ter$s o6 ana,ree$ent to a,ree7 Genera**19 suc. a,ree$ents are considered i**usor1= see /ay 7 Butcher Ltd 5 $9 CoalCliff Collieries Pty Ltd 5 .i>ehama Pty Ltd7 T.e rare instances in 5.ic. t.e1 .a"e een up.e*d are 5.ere t.eparties .a"e e"idenced a co$$it$ent to t.e transaction 1 part*1 per6or$in, and9 in particu*ar9 1 per6or$in,t.ose o*i,ations t.at are no5 ein, c*ai$ed 1 one part1 to render t.e contract "oid 6or uncertaint19 see

2oley 5 Classi6ue Coaches7 Per.aps suc. cases are no5 est seen are e)a$p*es o6 estoppe*9 ut in an1case t.ere is no e"idence o6 re*iance 1 eit.er part1 in t.is case7T.ere is t.en an issue as to 5.et.er an e)press o*i,ation o6 ,ood 6ait. and co%operation can sa"e

5.at 5ou*d ot.er5ise e an a,ree$ent to a,ree7 It is su$itted t.at it cannot= one cannot a,ree to ne,otiateto a,ree7 I6 I a$ 5ron, on t.at point t.ere is sti** an issue as to 5.et.er t.e ,ood 6ait. pro"ision can sa"e t.euncertainties raised 1 t.e ot.er c*auses7 At present in Ne5 Sout. Wa*es a ,ood 6ait. ne,otiation pro"isioncan on*1 e used to up.o*d t.e ar,ain i6 t.e ne,otiations 6or t.e a,ree$ent are 5e** ad"anced and i6 t.ere isa $ec.anis$ 6or reso*"in, disputes s.ou*d ne,otiations rea- do5n9 see Coal Cliff Collieries Pty Ltd 5.i>ehama Pty Ltd7 T.e ?eads o6 A,ree$ent e)presses t.e u*ti$ate intent o6 t.e parties ut *ac-s an1 detai* in5.at 5ou*d e a co$p*e) transaction7 It is irre*e"ant t.at ne,otiations $a1 in 6act e 5e** ad"anced= t.is $uste re6*ected in t.e ter$s o6 t.e ?eads o6 A,ree$ent as t.at is t.e transaction t.at B 5ants up.e*d as acontract7

T.e $ec.anis$ pro"ided to reso*"e ne,otiation rea-do5ns 5i** not sa"e t.e situation7 Ter$s

necessar1@ 6or t.e "enture on*1 captures t.ose ter$s t.at are o"ious7 T.is $ec.anis$ 5i** not a**o5 6or t.ei$p*ication o6 t.e co$p*e) ter$s t.at are necessar1 6or t.is transaction7 Re6erence to an e)terna* standardon*1 .e*ps i6 it e)ists= t.e O*1$pics are a rare e"ent and t.e parties "ar1 eac. ti$e and tec.no*o,1 "arieset5een ,a$es7 It is dout6u* t.at one cou*d produce a set o6 standard ter$s 6or suc. a contract9 see8hitloc- 5 Brew= nor t.at t.ere is a trade in suc. contracts9 see Three $i5ers Trading Co Ltd 5 Gwinear 7:istrict 2armers Ltd7

Fina**19 B $i,.t ar,ue t.at c*ause / cou*d e up.e*d as a contract in its o5n ri,.t on t.e asis t.at itconstitutes an a,ree$ent to ne,otiate7 ?o5e"er9 t.e *an,ua,e itse*6 does not re6*ect suc. an a,ree$ent soas to se"er it9 and at present suc. c*auses .a"e on*1 een considered are ein, re*e"ant to t.e e66icac1 o6t.e entire a,ree$ent on t.e princip*es discussed ao"e7 It 6o**o5s t.at B .as no contractua* ri,.ts a,ainst A7

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Co,!"r"%o,

#'7 ?e*en o5ns a suuran par-in, station7 At t.e entrance to t.e station9 an auto$atic $ac.ine issuescusto$ers a tic-et as t.e1 dri"e in and printed on t.e 6ront is Custo$ers are -ind*1 re8uested to notet.at "e.ic*es are par-ed on*1 su!ect to t.e conditions disp*a1ed on t.e pre$ises7 T.e conditions aredisp*a1ed on a notice attac.ed to t.e 5a** o6 t.e o66ice to 5.ic. custo$ers ,o to pa1 t.e par-in, 6eesprior to *ea"in, t.e par-in, station7 T.e notice reads:

Co,+%"%o,! o P'r8%,gT.e station is open 6ro$ 0a$ to #&p$ $idni,.t7 C.ar,es are Q& per .our or part t.ereo6= 6or "e.ic*es *e6to"erni,.t an additiona* 6ee o6 Q&'' is pa1a*e7 ?e*en re,rets t.at s.e cannot accept an1 responsii*it16or an1 .ar$9 *oss or da$a,e 5.atsoe"er7

W.en custo$ers pa1 t.e par-in, 6ees t.e1 are ,i"en a docu$ent .eaded Receipt 5.ic. indicates t.ea$ount paid and a*so repeats t.e 5ords o6 t.e notice on t.e 5a**7

Andre59 oan and Peter a** recent*1 par-ed t.eir cars in t.e par-in, station7 T.e1 .ad eac. used t.estation aout once a $ont. o"er t.e past 1ear9 ut .ad ne"er read t.e tic-et9 t.e notice or t.e receipt ;a**o6 5.ic. .a"e een used in e)act*1 t.e sa$e 6or$ t.rou,.out t.e period

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Peror/',e ',+ -re'h

#&7 Di$ a,rees to pa1 C*e"er Q&' an .our 6or ten one .our tutoria*s in contract7 C*e"er conc*udes eac.tutoria* / $inutes ear*17 Di$ ar,ues t.at .e is under no o*i,ation to pa1 6or t.e tutoria*s7 Is .e ri,.tW.at i6 t.e tutoria*s .ad 6inis.ed #/ $inute ear*1

#+7 Anna a,rees to ui*d a ne5 -itc.en 6or Roert7 T.e contract pro"ides t.at t.e -itc.en cupoards are toe $ade o6 oa-@7 Roert insists t.at t.e cupoards e constructed out o6 En,*is. oa- ut Anna c*ai$s

t.at s.e is entit*ed to use Tas$anian oa-7 Roert $aintains .is position and Anna re6uses to do t.e 5or-7Ad"ise Anna7

#(7 Bett1 is .a"in, a .ouse ui*t7 S.e e$p*o1s A**en to insta** e*ectrica* 5irin,7 T.e contract speci6ies E$urand 5irin, and re8uires 6our dou*e po5er points to e insta**ed in e"er1 roo$7 Bett1 a,rees to pa1Q#'''' 6or t.e 5or-7Because E$u rand 5irin, is not a"ai*a*e9 A**en uses oa*a 5irin,9 -no5in, t.at it $ade 1 t.e sa$e$anu6acturer as E$u7 In 6act t.e on*1 di66erence et5een t.e t5o t1pes o6 5irin, is t.at t.e1 aredistriuted 1 di66erent retai*ers7 ?e does not te** Bett1 o6 t.e c.an,e7 Due to an o"ersi,.t A**en insta**s6our sin,*e po5er points in eac. roo$7

Bett1 re6uses to pa1 6or t.e 5or-7 To rep*ace t.e po5er points 5it. dou*e po5er points 5i** costQ(''7 T.e cost o6 rep*acin, t.e oa*a 5irin, 5it. E$u 5irin, 5.ic. is no5 a"ai*a*e is Q/'''7 A**en is5i**in, to rep*ace t.e po5er points 5it.out cost to Bett1 ut re6uses to ear t.e cost o6 re5irin,7

Ad"ise Bett17

#/7 On # une Mic.ae* a,rees in 5ritin, to $anu6acture t.ree $ac.ines 6or Bett1 and to de*i"er t.e$ 1t.ree separate de*i"eries on # u*19 # Au,ust and # Septe$er7 Mic.ae* de*i"ers t.e 6irst $ac.ine on &'u*1 and Bett1 accepts it7 On && u*1 Bett1 *earns t.at Mic.ae*@s 6actor1 is e.ind in its 5or- and t.atde*i"er1 o6 t.e second $ac.ine 5i** e de*a1ed7 Ad"ise Bett1 W.at i6 Mic.ae* ceased to carr1 onusiness on && u*1

#07 Lad1 I$o,en consu*ts ?u,o9 a ce*erated and popu*ar artist9 to paint a portrait o6 .er .usand Sir asper6or Q#'9'''7 T.e 6inis.ed picture is to e presented to udos Co**e,e9 o6 5.ic. Sir asper is a SeniorFe**o57 Soon a6ter t.e paintin, is e,un9 Lad1 I$o,en disco"ers t.at Sir asper .as een .a"in, ana66air 5it. .is secretar17 S.e dec*ares t.at s.e 5i** .a"e not.in, 6urt.er to do 5it. .i$9 and instructs?u,o to stop 5or- i$$ediate*17 But ?u,o9 encoura,ed 1 Sir asper 5.o continues to co$e 6or sittin,s96inis.es t.e portrait and de*i"ers it to udos Co**e,e7 T.e $aster and 6e**o5s recei"e it 5it. ,reatp*easure7 W.en Lad1 I$o,en recei"es ?u,os i** 6or Q#'9'''9 .er indi,nation -no5s no ounds7 Ad"ise.er7

#37 a$es enters into a contract 5it. Bruce 6or t.e construction o6 a s5i$$in, poo* in Bruces ,arden 6orQ/9'''7 O6 t.is9 Q&9''' is to e paid 5.en t.e e)ca"ation is co$p*ete= Q&9''' 5.en t.e concretin, .aseen done= and t.e a*ance on 6ina* and satis6actor1 co$p*etion o6 t.e 5or-7 T.e contract pro"ides t.att.e e)ca"ation is to e co$p*eted 1 Apri* #= t.at t.e concretin, is to e done 1 Ma1 #= and t.at t.e poo*is to e 6inis.ed and read1 6or use on une #7 It a*so pro"ides t.at Bruce is to e entit*ed to cance* i6 atan1 sta,e a$es is $ore t.an & 5ee-s e.ind sc.edu*e 5it. t.e 5or-7 Soon a6ter a$es .as started todo t.e e)ca"ation9 so$e o6 .is 5or-ers 6a** i**9 5it. t.e resu*t t.at t.e 5or- is de*a1ed and t.e e)ca"ationis not co$p*eted unti* Apri* Bruce is a5are o6 t.ese de*a1s ut does not e)ercise .is ri,.t to cance*unti* Ma1 #0 5.en a$es ;1 dint o6 ,reat e66orts to speed up t.e 5or-< .as near*1 6inis.ed t.econcretin,7 On Ma1 #09 a reasona*e person in Bruces position 5ou*d .a"e conc*uded t.at it 5asi$possi*e 6or a$es to 6inis. t.e 5or- e6ore une 3 at t.e ear*iest7 Bruce .as paid a$es t.e Q&9'''

due on co$p*etion o6 t.e e)ca"ation9 ut .as $ade no 6urt.er pa1$ent7 Ad"ise a$es9 as at Ma1 #3t.7#47 On anuar1 & Se**er in S1dne1 and Bu1er in Me*ourne enter into a 5ritten contract 6or t.e sa*e o6 5.eat

5.ic. inc*udes t.e 6o**o5in, ter$s:# Price % Q#'' per tonne& Pa1$ent % Cas. on de*i"er1 at Bu1er@s 5are.ouse+ 2uantit1 % #''' tonnes( Description % Grade A 5.eat/ 2ua*it1 % W.eat to e o6 tiptop 8ua*it1 on arri"a*0 De*i"er1 % Marc.

On #& anuar1 Bu1er 6a)es to Se**er: Stoc-s o6 5.eat too ,reat re6use to .onour contract 5it. 1ou7

Se**er recei"es t.is 6a) ut $a-es no rep*17 On Apri* & Se**er tenders to Bu1er a consi,n$ent o6#''' tonnes o6 Grade A 5.eat7 Due to t.e 5.eat not ein, o6 tiptop 8ua*it1@ its "a*ue is #' *ess t.ant.at o6 5.eat o6 tiptop 8ua*it17 Bu1er re!ects t.e 5.eat7

Assu$in, t.e contract is ,o"erned 1 NSW *a59 5.at ri,.t9 i6 an19 do Bu1er and Se**er .a"ea,ainst eac. ot.er I6 1ou consider t.at eit.er ;or ot.< o6 t.e parties .as a ri,.t to da$a,es9 e)p*ain t.easis on 5.ic. t.ose da$a,es 5ou*d e 8uanti6ied7

24

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Wou*d 1our ans5er di66er i6 Se**er .ad 6ai*ed to de*i"er an1 5.eat at a** ecause its stoc-s o6 5.eat.ad een destro1ed 1 a ,a*e Wou*d it e re*e"ant to -no5 t.at stoc-s o6 A ,rade 5.eat 5ere a"ai*a*e6ro$ Sout. Austra*ia at Q&/' per tonne

#7 For t.e purpose o6 ad"ertisin, its c.oco*ate products t.e Dead*1 De*icac1 Co Ltd entered into a contract5it. P*ain5ords Ad"ertisin, A,enc1 Ltd7 T.e contract 5.ic. 5as in 5ritin, and dated Octoer #contained t.e 6o**o5in, ter$s:

A7 P*ain5ords 5i** at its o5n e)pense prepare posters ad"ertisin, t.e c.oco*ate products o6 Dead*17B7 T.e posters 5i** e disp*a1ed on i**oards .a"in, a $ini$u$ .ei,.t o6 +$7C7 T.e i**oards 5i** e erected outside t.e >ni"ersit1 o6 S1dne1 and disp*a1 o6 t.e ad"ertise$ents

5i** co$$ence no *ater t.an No"e$er #7D7 T.e ad"ertise$ents 5i** re$ain on disp*a1 6or + $ont.s and 5i** e at a** ti$es and re$ain t.e

propert1 o6 P*ain5ords7E7 Dead*1 5i** pa1 to P*ain5ords a 6ee o6 Q#''' per $ont. pa1a*e on Dece$er #9 anuar1 # and

Feruar1 #7T.e 6o**o5in, e"ents .a"e ta-en p*ace7 On Octoer #/ Dead*1 decided t.at c.oco*ate is .ar$6u* to.ea*t. and discontinued $anu6acturin, c.oco*ate products7 On t.e sa$e da1 Dead*1 noti6iedP*ain5ords t.at it 5as cance**in, t.e contract7 P*ain5ords re6used to a,ree to t.e cance**ation o6 t.econtract7 ?o5e"er9 no ad"ertise$ents 5ere disp*a1ed 1 P*ain5ords unti* No"e$er + due to a de*a1in t.e printin, o6 t.e ad"ertise$ents7 W.en disp*a1ed t.e ad"ertise$ents appeared on i**oards

$easurin, &74$ in .ei,.t7Ad"ise Dead*1 o6 5.at ri,.ts9 i6 an19 it .as a,ainst P*ain5ords7Wou*d 1our ad"ice di66er i6 t.e contract .ad contained a ter$ re8uirin, P*ain5ords to otain

t.e appro"a* o6 Dead*1 to t.e 6or$at o6 t.e ad"ertise$ents and no suc. appro"a* .ad een sou,.t

&'7 Construction Ltd 5as e$p*o1ed 1 oc- to construct so$e apart$ents on propert1 o5ned 1 oc-7 T.ea,reed price 5as Q# $i**ion7 T.is 5as to e paid 1 #' e8ua* Q#''9''' insta*$ents 5.ic. 6e** due undert.e contract on t.e 6irst da1 o6 eac. $ont. % pa1$ents t.ere6ore 5ere not necessari*1 apportioned to5or- done7 Construction Ltd .ad een to*d 1 oc- t.at it 5as i$perati"e t.at t.e apart$ents eco$p*eted 1 t.e end o6 t.at #' $ont. period as .e .ad a*read1 entered into *ease a,ree$ents 5it.tenants 6or t.e apart$ents and t.ose tenancies 5ere to co$$ence soon a6ter t.e #' $ont. period .ade*apsed7

On t.e 6i6t. da1 o6 t.e ei,.t. $ont. t.e $ana,er o6 Construction Ltd approac.ed oc- and saidt.e ei,.t. insta*$ent 6e** due on t.e 6irst o6 t.e $ont.9 5.1 .a"e 1ou not paid it And 1 t.e 5a1 t.ere isno c.ance o6 $e ein, a*e to co$p*ete t.ese apart$ents on ti$e un*ess 1ou a,ree to pa1 an e)traQ#''9''' on top o6 t.e a,reed contract price7

At t.e ti$e t.e $ana,er $ade t.is state$ent9 t.e1 .ad in 6act co$p*eted 4' o6 t.e 5or-s7?o5e"er9 i6 oc- 5ere to ,et a ne5 ui*der to co$p*ete t.e 5or-s it 5ou*d cost .i$ (' o6 t.e ori,ina*contract price7

;a< W.at ri,.ts $a1 oc- .a"e a,ainst Construction Ltd in t.e ao"e scenario;< I6 t.e contract 5ere to e disc.ar,ed9 can Construction Ltd sue 6or t.e 4 t. insta*$ent t.at

re$ains unpaid at t.is pointW.at 5ou*d 1ou consider to e t.e ri,.ts o6 t.e parties i6 oc- a,reed to pa1 t.e e)tra Q#''9'''

re8uested 1 Construction Ltd and i6 Construction Ltd t.en co$p*eted a** t.e ui*din, 5or- on ti$e

T.e ter$s o6 a contract 6or sa*e o6 stee* dated Feruar1 &''4 et5een Sa**1 and Bruce pro"ide:#7 2uantit1: #'' tonnes7&7 2ua*it1: Grade A7+7 De*i"er1: T5o e8ua* insta*$ents in Ma1 and une7(7 Price: Q#''9''' ;in tota*

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Wou*d 1our ans5er di66er i6 Bruce .ad disco"ered on #( Ma1 t.at Sa**1 .ad so*d .er entire stoc- o6stee* to ena on #' Ma1

W.at 5ou*d Bruces position .a"e een i69 instead o6 acceptin, t.e 6irst insta*$ent9 Bruce .adre!ected it and a*so purported to ter$inate t.e contract7

Re/e+%e! ',+ V%"%'"%,g '"or!

&&7 A*69 a pou*tr1 6ar$er9 disco"ers a 6au*t in t.e $otor po5erin, t.e "enti*ation s1ste$ o6 .is *ar,est pou*tr1

.ouse7 ?e te*ep.ones t.e $anu6acturers9 Bi6co9 e)p*ainin, .is predica$ent and p*aces an ur,ent order6or a rep*ace$ent $otor to e sent7 Bi6co $ista-en*1 sends a $otor o6 t.e 5ron, speci6ications and A*69care*ess*1 6ai*in, to notice t.is9 insta**s it7 T.e $otor is too po5er6u* and t.e entire s1ste$ is da$a,ed ast.e 6an $ec.anis$ disinte,rates7 Ad"ise A*6 in t.e 6o**o5in, a*ternati"e circu$stances:

;i< T.e .ouse contains an e)otic strain o6 1oun, peacoc-s 5.ic. A*6 .as een rearin, 6or C*i66under an e)ceptiona**1 *ucrati"e contract= t.e peacoc-s die o6 su66ocation7

;ii< T.e .ouse contains c.ic-ens 5.ic. die a6ter ein, in6ected 1 a rare "irus to 5.ic. pou*tr1 aresuscepti*e on*1 in "er1 .ot conditions7

&+7 Ian and o .a"e 5or-ed to,et.er success6u**1 6or so$e 1ears as pro6essiona* dancin, partners and areen,a,ed to e $arried7 Ian oo-s a .o*ida1 6or t.e$ ot. 5it. Midi Tours Ltd9 e)p*ainin, to t.e $ana,ert.at t.e1 are e).austed a6ter a *on, tour o6 e).iition dancin, and are in need o6 a ,ood rea- e6oret.eir 5eddin,7 T.e price o6 Q/'' eac.9 5.ic. Ian pa1s9 is inc*usi"e o6 a** tra"e* and $ea*s and

acco$$odation at t.e Sea"ie5 Lu)ur1 ?ote*9 St Trope7 W.en t.e1 arri"e at St Trope9 t.e Sea"ie5?ote* .as not een ui*t and t.e Midi representati"e puts t.e$ instead in t.e Pension Pis%A**er9 a t.ird%rate .ote* so$e $i*es in*and9 5.ere t.e1 .a"e a $isera*e ti$e 6or t.e 6irst 6e5 da1s and t.en succu$to 6ood%poisonin, a6ter eatin, a $ea* prepared in t.e Pensions un.1,ienic -itc.en7 T.is causes o to.a"e a ner"ous rea-do5n 5.ic. *asts 6or t.ree $ont.s a6ter t.eir return .o$e7 T.e 5eddin, .as to epostponed and Ian is una*e to earn an1 inco$e 5it.out .is dancin, partner7 Ad"ise Ian and o as tot.eir possi*e actions a,ainst Midi Tours Ltd7 Wou*d it a66ect t.e position i6 o .ad ,i"en Ian t.e Q/'' topa1 6or .er o5n s.are o6 t.e .o*ida1

&(7 ac- is a retired air*ine pi*ot 5.o o5ns a "a*ua*e e)ecuti"e !et aerop*ane9 5.ic. .e c.arters toco$panies and indi"idua*s 5it. .i$se*6 as pi*ot7

On # Septe$er ac- entered into a contract 5it. A!a) Ltd 6or t.e co$p*ete o"er.au* o6 t.eaerop*ane9 at a cost o6 Q/''9'''7 T.e contract pro"ided t.at t.e 5or- 5ou*d co$$ence on &'Septe$er and .ad to e co$p*eted no *ater t.an # Octoer7 ac- .ad to*d A!a) t.at .e 5as an)ious t.at

t.ere e no de*a1s as t.e aerop*ane 5as .is on*1 source o6 inco$e and I .a"e so$e "er1 specia* dea*sco$in, up7

On &4 Septe$er on*1 aout .a*6 o6 t.e 5or- .ad een co$p*eted7 ac- e)pressed a*ar$9 ut A!a)assured .i$ t.at t.e 5or- 5ou*d e co$p*eted on ti$e7 In 6act t.e 5or- 5as not co$p*eted unti* /Octoer7 As a resu*t o6 t.e una"ai*ai*it1 o6 t.e p*ane9 ac- 5as una*e to 6u*6i* a contract .e .ad to 6*1Ma,da*ena9 a 6a$ous A$erican roc- star9 on a 5.ir*5ind concert tour o6 Austra*ia7

?ad ac- een a*e to per6or$ .is contract9 .e 5ou*d .a"e een paid at t5ice .is usua* rate 6orc.arter 5or-7 As a resu*t o6 *osin, t.is contract9 ac- eca$e depressed as .e .ad een an ardentad$irer o6 Ma,da*ena 6or $an1 1ears and 5as de"astated at not ein, a*e to ,et to -no5 .er durin, t.etour7ac- see-s 1our ad"ice as to 5.at ri,.ts .e $a1 .a"e a,ainst A!a)7In addition9 discuss 5.at ac-@s position 5ou*d e in t.e 6o**o5in, a*ternati"e situations:

;a< Contrar1 to a** e)pectations9 A!a) co$p*eted t.e 5or- on ti$e and on & Octoer ac- a,reedt.at t.e 6o**o5in, da1 .e 5ou*d 6*1 u*ie 6ro$ S1dne1 to Ba*i7 u*ie to*d ac- t.at s.e .ad to ein Ba*i t.e ne)t da1 ecause s.e 5as one o6 t.e 6a"oured contestants in t.e 5or*d 1ode**in,c.a$pions.ips9 t.e 6irst prie 6or 5.ic. 5as Q#$i**ion7 ac- 5as re*uctant to underta-e t.e tripecause .e dis*i-ed 6*1in, o"erseas9 ut .e re*ented 5.en u*ie a,reed to pa1 .i$ at t.e rate o6Q+''' per 6*1in, .our ;.is usua* rate ein, Q#''' per .our

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&/7 Fine Bui*din, Pt1 Ltd contracted on +' anuar1 5it. i** to construct a *ar,e to1 5are.ouse and ad!oinin,store in Wo**on,on, 6or 6i"e insta*$ent pa1$ents o6 Q#$i**ion eac. 1 #' u*17 Fine Bui*din, did not 6inis.t.e ui*din, unti* #' Octoer7i**:

;a< re6uses to pa1 Fine Bui*din, t.e 6ina* insta*$ent o6 Q#$i**ion due on co$p*etion=;< c*ai$s da$a,es o6 Q#''9''' 6ro$ FB 6or t.e increased price o6 a s.ip*oad o6 apanese to1s

ordered on +' Feruar17 i** 5as una*e to accept t.e s.ip*oad on #' u*1 due to *ac- o6

stora,e space7 B1 #' Octoer t.e price o6 anot.er s.ip$ent .ad risen 1 Q#''9'''=;c< c*ai$s da$a,es 6or s*eep*ess ni,.ts9 an)iet1 and ner"ous e).austion induced 1 atte$ptin,to encoura,e FB to co$p*ete t.e ui*din, on ti$e7

FB states t.at i** s.ou*d .a"e opened on #' u*1 in one o6 t.e ot.er *ar,e 5are.ouses a"ai*a*e 6orrenta* in t.e Wo**on,on, area7

Ad"ise i** in re*ation to a** o6 t.ese $atters7

&07 Anna a**e,es t.at s.e 5as induced to u1 a *oc- o6 *and 6ro$ Roert 1 t.e representation o6 C.ar*es9Roert@s a,ent9 t.at t.e Education Depart$ent p*anned to ui*d a sc.oo* 5it.in &'' 1ards o6 t.e *and7T.e Depart$ent .ad no suc. p*ans and C.ar*es ased t.e state$ent on so$et.in, .is 5i6e .ad eento*d 1 a nei,.our7 C.ar*es did not $a-e en8uiries to c.ec- t.is in6or$ation7 Ad"ise Anna7

&37 In,e ou,.t a .ote* 6ro$ Ti$7 In,e c*ai$s t.at Ti$ $isrepresented t.e *i8uor purc.ases7 Ti$ a**e,es .edid state a 6i,ure to In,e ut added Don@t ta-e $1 5ord 6or it9 c.ec- at t.e *icensin, court7 T.e records

o6 t.e court s.o5 t.e *icense 6ee paid 1 a *icensee and 6ro$ t.is t.e purc.ases can e ca*cu*ated7 In,ec.ec-ed ut $isca*cu*ated t.e purc.ase 6i,ure7 Ad"ise In,e7

&47 S$it.9 t.e o5ner o6 an art ,a**er19 5.i*e dinin, at ones@ .o$e9 o66ered to u1 a paintin, .an,in, on t.e5a** 6or Q/''''7 ones co**ected paintin,s as a .o17 Bot. e*ie"ed t.e paintin, 5as 1 Doe** andones descried it as suc.7 In 6act it 5as a cop1 5ort. Q#''7 T.e ne)t da1 S$it. paid 6or t.e paintin,9too- it .o$e and disco"ered t.e trut. a 5ee- *ater7 Ad"ise ot. parties7

&7 B*ands9 a *ar,e S1dne1 *a5 6ir$9 .a"e !ust $o"ed into a ne5 o66ice *oc-7 Wis.in, to i$press t.eirc*iente*e9 t.e1 contact Connie Laure*9 t.e *oca* usiness identit1 and *on, ti$e patron o6 t.e 6ir$9 5it. are8uest t.at s.e *oan t.e$ so$e o6 t.e price*ess paintin,s 6ro$ .er pri"ate co**ection 6or disp*a1 in t.e$a,ni6icent*1 ornate *o1 o6 t.e ne5 ui*din,7 S.e a,rees9 ut on*1 on condition t.at B*ands or,anise6or t.e paintin,s to e c*ose*1 ,uarded7 B*ands accordin,*1 enter into an a,ree$ent 5it. Sa6e.ouses Inc;SInder t.is a,ree$ent9 5.ic. is to susist 6or & 1ears9 SI is to supp*1 ,uards 5.o 5i** e stationed in

t.e *o1 round t.e c*oc-7 T.e a,ree$ent $a-es no $ention o6 t.e paintin,s as suc.9 t.ou,. SI is 8uitea5are o6 t.e arran,e$ent 5it. Connie and c.ar,e a 6ee 5.ic. is t5ice t.eir nor$a* rate9 re6*ectin, 5.att.e SI representati"e c*ai$s are t.e unusua* circu$stances in"o*"ed7

On t.e da1 e6ore t.e paintin,s are to e de*i"ered and t.e SI ,uards are to co$$ence 5or-95ord co$es t.at Connie@s entire co**ection9 inc*udin, t.e paintin,s ear$ar-ed 6or B*ands9 .a"e !ust eendestro1ed 1 6ire7 B*ands in6or$ SI t.at t.e dea* is o667 SI responds 1 c*ai$in, t.at B*ands .a"erepudiated t.e contract and co$$ences an action 6or da$a,es7 Ad"ise B*ands as to an1 de6ence t.e1$a1 .a"e to t.is action7

Wou*d 1our ans5er e di66erent i6:;a< it turned out t.at9 un-no5n to eit.er part19 t.e paintin,s .ad een destro1ed e6ore

B*ands and SI .ad entered into t.eir a,ree$ent;< SI .ad een a5are at t.e ti$e o6 t.e a,ree$ent t.at t.e paintin,s .ad a*read1 een

destro1ed ut .ad re$ained si*ent

+'7 In &''(9 L1dia 5ent to Annes anti8ue s.op9 5.ere s.e sa5 so$e c.airs 5.ic. s.e t.ou,.t 5ere,enuine C.ippenda*e7 S.e inspected t.e$ 6or 5ood5or$9 and ou,.t t.e$ 6or Q49'''7 Anne9 too9t.ou,.t t.at t.e1 5ere C.ippenda*e9 ut .ad 6ai*ed to c.ec- a cata*o,ue9 5e**%-no5n in t.e trade9 5.ic.5ou*d .a"e s.o5n conc*usi"e*1 t.at t.e1 5ere in 6act *ate ictorian reproductions7 L1dias 6riends 5ere a**in"ited to "ie5 t.e c.airs= one "er1 -no5*ed,ea*e one9 To$9 to*d L1dia t.at t.e1 5ere reproductions andun*i-e*1 to e 5ort. e"en Q/''7 ?o5e"er9 L1dia did not e*ie"e .i$7 In &''/9 L1dia so*d t.e c.airs to .er6riend T.erese= s.e to*d T.erese t.at ot. s.e and Anne e*ie"ed t.e$ to e C.ippenda*e9 t.ou,. s.ecou*d not ,uarantee t.at t.e1 5ere7 S.e did not $ention To$s co$$ent7 On de*i"er19 T.erese disco"erst.e trut.9 and c*ai$s .er $one1 ac-7 Ad"ise L1dia7

+#7 On # Apri* &''( o1 si,ned a contract 5it. ?ea*t. and Dance Studios Ltd7 S.e $ade an initia* pa1$ento6 Q+''' and a,reed to pa1 a 6urt.er a$ount o6 Q#&''' o"er t.e ne)t t5o 1ears7 In return s.e 5as toattend 6itness c*asses t5ice a 5ee-7

T.e ne)t da1 Susan si,ned a contract 5it. t.e sa$e co$pan17 S.e $ade an initia* pa1$ent o6Q&''' and a,reed to pa1 a 6urt.er a$ount o6 Q4''' in insta*$ents o"er t.e ne)t + 1ears 6or t.e ri,.t toattend a 5ee-*1 dance and se*6%con6idence c*ass7

Eac. contract contained t.e 6o**o5in, c*ause:

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I 6u**1 understand t.at i6 I desire to 5it.dra5 6ro$ t.e c*asses 6or an1 reason 5.atsoe"er;inc*udin, p.1sica* disai*it1 or $edica* conditions< no cance**ation o6 t.e contract orrepa1$ent o6 $one1s is possi*e7 A** insta*$ents $ust continue to e paid 5.et.er or notc*asses are attended7 ?o5e"er9 i6 1ou are satis6ied t.at I .a"e ceased attendance ecause o6a p.1sica* disai*it1 or $edica* condition9 1ou 5i** e)tend t.e a"ai*ai*it1 o6 c*asses to $e unti*suc. ti$e as I can resu$e continuous tuition7

One $ont. a6ter si,nin, .er contract o1 5as dia,nosed as su66erin, 6ro$ an incura*e raredisease 5.ic. $a-es p.1sica* e)ercise dan,erous to .er *i6e7 At t.e sa$e ti$e Susan 5as in!ured ina $otor car accident7 S.e 5i** e una*e to resu$e c*asses 6or at *east & 1ears7

o1 is a so*icitor 5or-in, in a *ar,e cit1 6ir$7 S.e read t.e contract care6u**1 e6ore si,nin, it7S.e t.ou,.t t.e price see$ed rat.er .i,. ut s.e did not $a-e en8uiries o6 co$petin, studiosecause s.e 5as too us19 and .er e$p*o1er 5ou*d in an1 e"ent rei$urse .er 6or t.e cost o6c*asses7 Susan9 no5 a,ed #49 *e6t sc.oo* at t.e ear*iest possi*e date ecause o6 .er poor sc.o*asticresu*ts7 S.e 5or-ed e"er since *ea"in, sc.oo* as a $ac.inist in a *oca* 6actor17 S.e undertoo- t.ecourse contract 5it.out readin, it ecause I a$ not too c*e"er at readin, and t.ose 6or$s ne"er$a-e $uc. sense to $e7 S.e .ad t.ou,.t o6 s.o5in, t.e 6or$ to .er 6at.er e6ore si,nin, it9 utdid not do so ecause t.e sa*es$an to*d .er t.at t.ere 5as a .ea"1 de$and 6or t.ese c*asses and.e cou*d not ,uarantee to .o*d t.e price i6 s.e did not si,n i$$ediate*17

?ea*t. and Dance Studios Ltd re6use to cance* eit.er contract or to re6und an1 $one1s

a*read1 paid7 It recent*1 recei"ed *etters 6ro$ so*icitors actin, 6or o1 and Susan t.reatenin, to see-re*ie67 Studios ad$its t.at its c.ar,es 6or tuition are appro)i$ate*1 t.ree ti$es as .i,. as t.ose o6co$petin, studios ut states t.at it .as ne"er c*ai$ed to e t.e c.eapest7

Studios see-s 1our ad"ice as to t.e *i-e*i.ood o6 o1 and Susan otainin, re*ie6 and9 i6 re*ie6is *i-e*1 to e ,i"en9 5.at 6or$ t.at re*ie6 $i,.t ta-e7

+&7 Dit.er a,rees 5it. Loader9 a re$o"a* contractor9 to pac- and re$o"e .is 6urniture 6ro$ Me*ourne toS1dne1 on Apri* # 6or an a**%in cost o6 Q3/''= .e .as so*d .is .ouse to Mu$*er and is ound to ,i"e"acant possession at +p$ on t.at da17 On t.e $ornin, o6 # Apri*9 e6ore an1 pac-in, .as e,un9 Loaderte**s Dit.er t.at .e 5i** not ,o a.ead 5it. t.e !o un*ess Dit.er pro$ises to pa1 .i$ an e)tra Q&/''9 anda*so Q/'' eac. to .is pac-ers9 ?ur*1 and Bur*17 Dit.er sa1s Jou -no5 t.at a** t.e ot.er carriers areoo-ed up 6or 5ee-s and I .a"e no option9 and si,ns a note pro$isin, to pa1 t.e$ t.e Q+/''7 Loadert.en 6inds Dit.ers 5i6e Witter a*one in t.e dra5in, roo$ and sa1s to .er t.at .e cannot ,uarantee t.at?ur*1 and Bur*1 5i** .and*e .er .usands porce*ain co**ection sa6e*1 un*ess s.e pro$ises to pa1 Loader

anot.er Q#'''7 er1 6ri,.tened9 s.e si,ns a pro$ise to pa1 t.is su$9 sa1in, T.is is *ac-$ai*7E"er1t.in, is sa6e*1 de*i"ered and on ti$e7 Loader9 ?ur*1 and Bur*1 de$and t.e additiona* su$spro$ised7

Ad"ise Dit.er and Witter7

++7 Lou9 a sa*es assistant 5.ose .usand .as recent*1 died9 5as "er1 concerned aout .o5 s.e 5ou*d ea*e to $ana,e 5it.out .is inco$e7 S.e discussed .er 5orries 5it. Matt9 a 6riend o6 t.e 6a$i*1 5.o is asuccess6u* usiness$an9 and $att su,,ested t.at Lou se** .er si)%edroo$ .ouse and $o"e into a s$a**6*at7 Later .e o66ered to u1 t.e .ouse 6or Q&/'9''' and Lou accepted t.is o66er and entered into a 5rittencontract to se** t.e .ouse to Matt7 Lou .as no5 disco"ered t.at t.e .ouse is 5ort. o"er Q/''9''' andsee-s 1our ad"ice7

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