Reference no: EM131624602

Instructions

Read the following factual scenario then answer all of the questions at the end of this paper (p 5).

Please note: these facts are purely fictional.

Factual scenario

Lisa is an avid professional swimmer who participates in local and national competitions. When she is not training or competing, she likes to relax and go sailing, kayaking or jet-skiing. She has a full-time job but realises that being on the water is her passion and she contemplates leaving her position to set up a new jet-skiing company in Adelaideâs west. She takes out a loan and purchases an empty office space in the city where she plans to set up her new company office and display room. After setting up the office she goes looking for suitable jet-skis. She decides 10 jet-skis will be plenty to start with and that sheâll buy more as the company grows.

On 7 February 2017, Lisa visits a number of outlets but is particularly impressed with the range of available jet-skis at Blitz Boats, owned and operated by Vicky. The two chat for a while and Lisa indicates she is interested in 10 of the Wave 500G model jet-ski, advertised at $16,000 each. Lisa asks Vicky if she will do her a special deal for buying 10 jet-skis, to which Vicky replies that she will crunch the numbersâ and see what she can do. She gives Lisa her personal mobile number and tells Lisa that sheâll hear from her in the next few days. A week later, on Tuesday 14 February, Lisa still hasn't heard back from Vicky so she decides to contact her at Blitz Boats to follow-up her request for
a quote. The following text message conversation takes place:

3 In the meantime, Lisaâs colleague Patrice (who she rarely speaks to) learns of her aspirations to start a skiing company and offers to lease her some of his comparable jet-skis for just $500 each per month until the end of the year. Lisa figures this will give her more time to find and purchase her own jet-skis in 2018 and so she accepts Patriceâs offer. The term of the lease is for 10 months (until the end of the year) beginning 1 March 2017 for seven jet-skis. She begins using the jet-skis for her business and it is a great success. A short time later, on 15 April 2017, Patrice contacts Lisa and leaves the following voicemail on her phone:

Lisa, itâs Patrice. Iâm really sorry to have to do this but Iâm going to need you to pay me a bit more for those jet-skis. My wife and I had a massive fight last week and sheâs filed for divorce. Thereâs no chance we can patch things up so Iâm going to need every cent I can get hold of over the next few months. Iâll need you to pay $1,000 each per month instead of $500. So the total for all seven jet-skis will now be $70,000 instead of $35,000. Sorry Lisa, but I need it. Thanks and speak soon.

Lisa hears the message but calls Patrice later that day and refuses to pay the additional money, saying that was not what they originally agreed. Patrice is infuriated because he feels that Lisa is not helping him in his time of financial need and feels she is obligated to pay more for the jet-skis. Vicky has since heard about Lisaâs deal with Patrice and is also very angry at Lisa because she was of the understanding that Lisa had accepted the discounted offer she made for the Wave 500G jet-skis from Blitz Boats and had processed the order.

Lisa, disheartened at everything that has happened, decides to take one of her kayaks out for a ride at Glenelg Beach. She notices a nearby community kayaking race with prizes on offer and decides to enter and try her luck. After writing her name down and registering she is handed a booklet with the words âRace Map and Kayak Safety Guideâ on the front (pictured below).

The Adelaide Kayaking

Association (AKA)
CHARITY REGATTA!

RACE MAP AND KAYAK SAFETY GUIDE

Lisa can see that the race track is quite clearly laid out with buoys and flag markers, and she has kayaked for years and knows very well how to use them, so doesnât see the need to read through the booklet. She starts racing and comes third before an usher approaches her requesting her participation feeâ. Unbeknownst to Lisa, the booklet she received also contained the terms of participation in the competition. One of the terms states: By racing in the Adelaide Kayaking Association (AKA) Charity Regatta, participants agree to pay the sum of $500 to the AKA. Lisa does not have the money to pay this fee after starting her business and feels she has been tricked.

Please provide answers to the following questions:

1. Is Lisa contractually obligated to pay Patrice the additional money he has requested?

2. Is Lisa required to pay the participation fee in the kayaking event?