Reference no: EM133030963

Mrs Patel and her son Ravi farm alpacas in a remote region of Victoria at Peru Farm. The herd of alpacas were purchased for a price of $8000 per animal. The fencing has become dilapidated in some parts and the alpacas tended to escape from time to time.

Mrs Patel entered into a valid contract with Fine Fences Pty Ltd ('FF') about constructing a fence.

The terms of the contract included the following:

FF will construct 1000 metres of wire fencing.

Mrs Patel will transfer $10,000 to FF on completion of the fence.

After Mrs Patel had signed the contract, she expressed concern that the fence may not be strong enough to prevent the alpacas from escaping. FF assured her that their fences were 'animal proof.'

a) FF had completed 800 metres when it ran out of the special titanium fence posts needed for the rocky soil. FF erected temporary fencing along the uncompleted length and requested payment of $10,000, which Mrs Patel refused to pay. FF has subsequently received a new shipment of the posts, but Mrs Patel is refusing to allow them onto the property to complete the fence, as she fears the fence is not strong enough.

Required

Advise FF if Mrs Patel is required to pay FF for the fencing, and if so, how much. Refer to relevant cases and principles of contract law in your answer.