Reference no: EM133678726

We also have these scenarios to examine so you can practice applying your learnings. Practice PIRAC.

1. Jenny is interested in antiques. She loves visiting antique and collectible shops each weekend around Tasmania. On Saturday she sees what she thinks is a Victorian-era chair. She asks the shop attendant who reads out the description on the chair tag and based on that Jenny buys the chair. She is disappointed to learn that it is a replica.

What advice will you give Jenny as to her rights under the contract of sale?

2. Would it make any difference to your advice if Jenny had spoken to the owner of the antique store who told her that it most definitely was a Victorian-era chair and he had four of them at his home? As it turns out the store owner had left Melbourne under a cloud of suspicion and has been selling replicas as antiques for some by relying in customers who have little experience.

3. Ami was looking to buy an investment property from Interstate. She contacted a buyer's advocate in Victoria and gave them her specifications. The advocate found several houses for her to look at online and then took her to virtual open homes to see the properties. Ami was very interested in one. She asked the advocate a number of further questions including whether there were any crimes committed in the house as she had heard about former drug properties causing havoc for new owners and requiring extensive internal refurbishment. Ami informed the advocate that she was still living in the Northern Territory and could not get 'local intel' about the neighborhood. The advocate stated that the home was perfect with no criminal history attached.

In fact, the advocate had not bothered to stay up to date with readily available information to real estate professionals and after settlement, the tenant who moved in complained of odors and stains on the walls. It was discovered the house had been used as an illegal drug lab and this information was available to the advocate. Ami incurred significant expenses allowing the tenant to break the lease and having to pay for extensive internal rectifications (new carpets, walls, ceilings).

Advise Ami of her rights against: (hint- refer to Hinton's case which is in the TB page 128 and the case slide deck)

a) the advocate

b) the real estate agent selling the property

4. Marcus has contracted to charter a group of 50 people to an all-expenses 'Cross the Sea to Swiftie' trip. Each person paid $1500 for a flight to Melbourne, two nights accommodation, a ticket to the Saturday night Taylor Swift concert and a tour of the Botanical Gardens on Sunday. The offer is sold out weeks ahead and Marcus is on track to make a good profit. Three days before the Saturday concert, the concerts are cancelled due to the singer's illness. Marcus argues that there are no refunds to be made due to a clause in the contract which says "in the event the main event is cancelled or postponed, you will receive a refund on your ticket cost once refunded from the tour promotor. All other expenses will be incurred as the tour will still go ahead." Sandra, has bought one of the tickets and wants all of her money back as she was only going to see Taylor. She wants to argue that the contract requires strict or exact performance of the condition that the Swift concert is a critical term. Advise Marcus.

5. Xavier has a contract to build a new hall at the Orford primary school. He has factored in costs, driving time form Hobart to Orford and labour costs. One month into the contract the road from Hobart to Orford is closed due to a landslide and the only other way through is via a route north then south which adds 2 hours to the journey each way. After falling far behind the work schedule on the hall, due to working shorter days to accommodate the travel, Xavier rents a home for the construction team to stay down at Orford during the week and he also pays for their food whilst away from their homes. The extra costs are making cash flow very tight and Xavier wonders if he might argue frustration of the contract so it might be declared void.

Advise Xavier

6. What would you advise Xavier if the state government placed a travel ban on all Tasmanian residents prohibiting them from traveling more than 5 kilometres from their homes in an effort to curb the spread of an invasive beetle through the state and onto farming land. The ban is imposed for a minimum of six months until September and the hall is due to be finished by August.

7. Revisit Sasha and Bill from week 2: Sasha entered a contract with Bill where they agreed he would re do the tiles in her shower over two weeks for $4000. Sasha gave Bill the description of the tiles she had picked out and he took away a sample tile to go to the tile shop. Sasha paid Bill $2000 upfront with the balance to be paid on completion of the job in two weeks. Bill completed the tiling on time however he used some wrong tiles. He could not find 100 tiles that Sasha wanted so he used 25 tiles that were a different colour. Sasha is very unhappy and does not want to pay the remaining $2000 to Bill. Bill argues he finished the job, so the money is due.

Advise Sasha:

• Did Bill perform the job as agreed? Or only part of the job? Did he satisfy the terms of the agreement?