Question 1

IRCA Recommended

Ace Constructions enter into a contract with Lismore City Council to build a new car park in the central business district and to complete the work within 30 weeks. Unfortunately a major flood in the city means that Ace is prevented from working for four weeks. Ace now wishes to have the contract terminated due to frustration. Advise Ace in these two scenarios in detail:

1. The delay plus the additional flood clean-up costs means that, although they can still complete the job within 30 weeks, Ace will now incur a much smaller profit on the contract.
2. The delay plus the additional flood clean-up costs means that Ace will not be able to complete the job within the agreed time and incur a significant loss.

Question 2

What needs to be proved before the courts will agree that an agent has ostensible authority? Explain with reference to Freeman & Lockyer v Buckhurst Park Properties. Explain in detail.

Question 3

IRCA Recommended

Kathleen loves extreme sports including mountaineering. She requires walking boots for her trip to Bolivia where she intends to climb Mt. Ancohuma with friends. She visits Kilimanjaro, Brisbanes leading outdoor clothes store, and discusses her plans with an attendant who strongly recommends a pair of Alpine brand boots. Kathleen accepts the advice and purchases the Alpine boots. Kathleen tests the boots by undertaking several arduous day-walks in the Snowy Mountains, until it is time for her to fly to Bolivia and embark upon the big climb. Unfortunately after just one day of traversing the narrow, steep and rocky track, the left heel separates from the boot making it impossible to continue. Kathleen has to abandon the climb and returns, slowly, painfully and in great emotional distress to the base camp.

On her return to Melbourne she meets with you seeking legal advice. Advise Kathleen regarding her chances of winning if she sues Kilimanjaro under the Australian Consumer Law.