1Albert 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?
2George contracted to have some alterations and repairs made to his factory roof. Pete the builder had agreed to complete the work in two weeks, which he failed to do. Before Pete finished the work, there was a heavy rainstorm and as a result there was substantial damage to the factory interior. Upon inspecting the damage in the height of a storm, George saw that quite a lot of his products and materials could be saved if they were moved, so he hired some carriers to shift the goods and put them into storage.
· Discuss what damages George can claim.
· Would it make a difference had he not attempted to save the goods that could be saved?
3Cathy wishes to establish a contract for cleaning of her tablecloths for her newly opened restaurant, Cathy’s Cuisine. She took 50 white linen cloths to the nearest store, Dry Cleaning Services Pty Ltd to be cleaned, in order to test out their service. When she went to the store to collect the cloths, several of the cloths had orange stains all over them. They were ruined. Ten of the cloths could not be found at all.
The cashier said: ‘It’s not our fault. It says so right on your ticket.’ On the back of the ticket was printed the following clause: ‘The company will not be held liable for any damage to articles left for cleaning, whether caused by the negligence of the servants or agents of the company or otherwise.’
Advise the parties.
4 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?