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Assessment: Case study is worth 20% of the final mark.Word Count: 1500 words excluding citations, quotations, footnotes and bibliography (10% leeway).
Case study assignment question:
Lisa is a small business owner. Her business interests include a coffee shop and a small variety store in Laverton.
She pays $850 per week for the coffee shop in a new shopping centre in Laverton. She thought this would make a great investment considering the expansion of the suburb and construction of large new residential developments in the area. Five months into the lease she realised that her business is not growing as she expected. She decides to speak to the landlord, David, who also happens to be her brother-in-law. David decides to reduce her weekly rent to $550 a week until business improves. For the next two and half years she paid the reduced rent. In the meantime, she starts to think of moving to another shopping centre not far from her current coffee shop for business reasons as well as due to breakdown of her marriage as she did not want to deal with her brother-in-law anymore. David learns of her plans from third parties and seeks payment of the rent foregone in the past two years.
After the breakdown of her marriage, Lisa decided to move on and determined to build a new house in a residential estate in a nearby suburb of Truganina. She contacts Allen Family Homes Pty Ltd, a company which seems to have a good reputation in the area for building affordable homes. She pays a visit to the companys display home where she was shown a very beautiful 3 bedroom house. The brochures she was shown contains glossy artists impression of the house and standard inclusions. She was so pleased with the size and presentation of the house. She was particularly very happy with the garden landscape, kitchen appliances and bathroom fixtures. What particularly excited her most is the fact that there is a proposed train station at a walking distance from her future home as shown on the masterplan of the estate. She pays the deposit immediately and signs the builders standard contract. The builder finished the house in about four months. On the handover inspection date, she discovers that garden landscape, the bathroom fixtures and kitchen appliances that she saw at the display house are missing. The builder points to the signed contract which does not mention anything about these. She also learns that the proposed train station is for the year 2030.
The success of her coffee shop is in part due to excellent coffee brewing skills of her barista, Ashley. In fact, most regular customers come to the coffee shop because of the excellent coffee Ashley makes. Ashley and Lisa have a verbal agreement that Ashley would move with Lisa to a new location when that is found necessary and that she will not undertake to work for other coffee shops in the same shopping complex as that of Lisas for two years. Shortly after the move, Ashley reneges on her promise and decides to work for another coffee shop.
Based on the above hypothetical scenario answer the following three questions.
Page 3 of 4
1. Is Lisa contractually obligated to pay the rental arrears of two and half years to David? Why? Support your answers with relevant legal authorities (500 words) 2. Does Lisa have any valid contractual claim against Allen Family Homes Pty Ltd for issues relating to landscaping, bathroom fixtures, kitchen appliances and proposed train station? Why? Support your answers with relevant legal authorities. Do not consider implications under Australian Consumer Law or Law of Negligence. (500 words) 3. Does Lisa have a contractual right to stop Ashley from working for a competing coffee shop in the same shopping complex? Why? Support your answers with relevant legal authorities (500) words)
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