Reference no: EM132753273
Question: Jack and Jane recently bought a vacant block of land in Glandore, with plans to build a new house. Jack spoke to his brother Jed about his plans. Jed is an architect who lives in Darwin. The following conversation between Jack and Jed, took place:
Jed: I don't have too much work on at the moment; I could design the house and prepare the building plans for you?
Jack: I am not sure if I could afford your fees.
Jed: Well I don't need to make a big profit on this job, you are my brother and I would like to help you out. I just need to cover my time and expenses. How about I charge a flat fee of $3000 + GST for building plans?
Jack: OK. Well that sounds like a good deal to me.
Following a series of discussions with Jack and Jane about what type of house they wanted, Jed completed the building plans and sent the plans to Jack and Jane, together with an invoice for $3000.00 + GST. After receiving the invoice, Jack told Jed that he was not going to pay the invoice because he and Jane had decided not to build the custom home that Jed designed. Jed was furious and demanded payment. Jed threatened to sue Jack and Jane for "breaching the contract." Jack replied as follows: "Jed, don't be like that. I thought you just wanted to help me out. You can't sue me anyway ...there is no contract because this was just a family arrangement."
Is Jack correct in saying that there is no contract because it is a family arrangement?
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