Reference no: EM131633268

1. Sarah and Jemima took a two year lease of premises in the Shopping Centre. They started their own organic vegetarian café. Their enthusiasm made up for their lack of experience and soon they were booked out every day for lunch and dinner. Their success was a great achievement given neither of them had every learned to read or write because of some undetected learning difficulties they had as children.

As their lease is due to be renewed, they would like to renew it for another five years. Sam, the Centre manage, has told them they will only get a new lease with a 200% increase. Sarah and Jemima tried to discuss the matter with him but he is unwilling to negotiate. He tells them that they "can take it or leave it" and points out to them that this is the only shopping Centre in town. 

Sarah and Jemima enter into the new lease but, after struggling with the downtrend in their business, seek to get out of the lease. Sam will not allow them to do so and says they have another four years to run on the lease and that they can either stay there and pay or move out and still pay the balance owing under the lease. 

Can Sarah and Jemima successfully argue they should be able to avoid this contractual obligation?

2. Reggie is a home builder of extreme talent, although he is unable to read and write. In August last year he entered into an agreement to build a house for Bob, to be finished by the end of January this year. The total cost of the building is agreed to ne $250,000. The agreement was subject to the execution of a formal contract, which Bob drafted. Reggie then asked Bob the terms of the agreement to which Bob replied they were as agreed. 

Reggie completes the build on 31 January, the agreed date. However, when he receives payment he only gets $225,000. When Reggie questions this, Bob tells him that $25,000 was deducted as a default payment because the house was not completed on time - as per the written terms of the contract. 

Can Reggie recover the $25,000?

3. Albert is not knowledgeable about cars and is told by a car dealer that the car he is looking at is in perfect mechanical condition, is the "best bargain in town" and that the same model has won a famous race overseas". 

The condition of the car and the fact that that model won a race convince Albert to buy the car. It later turns out that the car is un-roadworthy and another model had won the race. 

What remedies, if any, does Albert have?