QUESTION 1 : ILAC Method – BLO1105 Business Law Assignment – Lianne, a wealthy property developer, wants to treat her friends by hosting and paying for a mid-year party on 30 July. She wishes to outsource the party arrangements to a professional organiser and searches the internet for one.
The following advertisement on the website of maryspartytreats.com.au catches her eye:
| Looking for someone to organise your next private or corporate function?.Would you like your party organised efficiently, stylishly and professionally? Look at our wide choice of packages to suit every budget. Parties start from $500 for a group of 5.Look no further. Contact Mary at Mary’s Party Treats for a quote. |
On 10 June the following email exchanges occur.
Lianne emails Mary setting out her requirements for a Malaysian themed party including that country’s high-quality ethnic food and drink, and live Joget and Zapin styles of music provided by musicians. She expects twenty people in her group, and asks for a quote. She tells Mary to direct all correspondence to her given email address.
In reply, Mary emails Lianne suggesting that the party be held on board a boat that will travel up and down the local river for a period of eight hours. Lianne responds immediately saying she likes the idea provided there is room on board for dancing, and enquires about the type of boat that will be used.
Three hours later, Mary emails Lianne with information about the boat and attaches a
detailed quote for the amount of $10,000.
Lianne replies that the quote seems a bit high and proposes a price of $9,500.
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In response, Mary approves this lower price on the condition that her new quote for the lower figure would only remain open for seven days, and provided a 10% non-refundable deposit was received in that time-frame. As added encouragement, she writes, ‘I really hope to hear from you soon’.
Lianne’s personal commitments distract her from responding to Mary’s last email. It is only on 20 June, that she contacts Mary again and on that date, the following exchanges occur.
Lianne sends Mary an email saying ‘go ahead with my party for $9,500. I’ll forward the deposit to you by the tomorrow’.
Mary replies, ‘Sorry, but the price is now $10,000 due to increased costs’.
Annoyed by this, Lianne writes, ‘You’re actually bound by your $9,500 offer. But I don’t want to quibble. So go ahead with the $10K deal’. Thirty minutes later, Lianne has a change of heart and sends another email to Mary stating, ‘I’ve changed my mind. The deal is off’.
Mary does not read these last two emails from Lianne because Mary’s computer had just experienced hard drive failure. She has no other electronic devices to access her emails, and the technical problem is not resolved until five hours later.
When her computer is repaired, Mary reads for the first time Lianne’s two earlier emails.
Mary has found Lianne to be a demanding client – or potential client. She had spent some time and effort preparing the quote and believes they have a contract.
Required
- Explain whether the parties had entered into a contract with one another.
Your answer should include analysis of
- all the parties’ exchanges and their legal significance (if any)
- whether any opinions or views held by the parties are correct or not. ( Furthermore, beware of the words or descriptions used by the parties throughout the facts as these are only their interpretations of events, and may be incorrect)
(Focus on the topics: offer and acceptance).
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(12 marks)
- Assume for this part only, a contract was formed between the parties for the price of $9,500. On the agreed date of 30 July, Lianne arrives with her friends who boarded the boat arranged by Mary. The food and drink supplied by Mary (through her supplier, Food Organics Ltd) was totally different from what Lianne had ordered, as it consisted of Russian-style food rather than Malaysian cuisine. Furthermore, the boat was extremely cramped and it was a tight squeeze to accommodate all the party guests, let alone the musicians, leaving no room for dancing. All the food was consumed. Upset by this, Lianne complains to Mary, ‘I’m a consumer and I have rights, you know!’.
Advise Lianne of her rights, if any, against Mary under the relevant legislation.
(6 marks)
(Total for Question 1: 18 marks)
QUESTION 2
Advertisements published by businesses appear in various media such as television, radio, print, or internet. In Australia, as elsewhere, advertisements are designed to have a certain impact or effect on those who see, read or hear them. An example appears in the facts of Question 1 (above).
The business advertiser needs to be careful about statements made in its advertisements given that they are subject to legal rules developed by the courts as well as by Parliament (through legislation).
Required
Discuss this statement.
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(Note: ILAC Method – BLO1105 Business Law Assignment is not an IRAC question but an essay question. Ensure you do discuss the statement, with which you may agree or disagree. Refer to relevant legal authorities such as cases and legislation in support.( Focus in particular on the topics: offer and acceptance, and misrepresentation).
(12 marks)
(Total: 30 marks)