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Important General Instructions
• You will have to look at ALL parts and answer the questions. Be strategic with how many words you write for
your answer to each of the questions. Look at the marks available for those questions and allocate words accordingly.
• Make sure that you discuss any applicable legislative provisions and relevant case law. If you need to look at
particular state legislation, remember to use the one from Victoria.
• Make sure to discuss all relevant elements of the legal issue focusing most of your attention and words on the ones
that are likely to be contentious between the parties.
• Please do not question the facts of the scenario. There is also no need to discuss whether something can be proven
or not. You have all the facts required to answer our questions.
•Confine your answer only to the topics covered in Contract Law A so far, i.e. agreement, intention, consideration
and promissory estoppel. Not all these topics will necessarily be relevant.
• You must consider and weigh the arguments that either party might make, and conclude with who you think the
court is likely to side with.
Rocking with Purple Smith
Part A
A, B and C are devoted fans of superstar Purple Smith who is coming to Australia to give some concerts.
Tickets are hard to get and for the major towns nearly impossible. But the group of superfans are lucky:
they manage to get some tickets for Smith’s concert in a rather remote picturesque town called ‘Rocking
Town’. They decide to expand the trip and are thinking about staying a bit longer to take in the sights.
Anticipating some difficulties in obtaining accommodation in a smaller town, A immediately goes onto the
internet to check what is available in the town. On the website Accommodations R’Us, he finds a place that
looks too good to be true, a three bedroom penthouse close to public transport that would take them directly
to venue for the concert. The advertisement states:
‘Great 3 bedroom penthouse in Rocking Town. It is close to public transport connecting to you to all the
attractions our town has to offer. Accommodation is $300 per night with a discount if you are staying
for more than 3 nights. Give me a call on [phone number] to discuss any further details.’
1st Call
Not believing his luck, A immediately contacts the owner O who advertised on the website. O doesn’t
answer and the call goes to voicemail. A leaves a message: ‘I have seen your offer for the great penthouse
apartment with view and three bedrooms. My friends and I would love to get it for one week from 1
September 2024 to 7 September 2024! How do I pay it? We also might be interested in the discount as we
may stay for up to a week. Please call me back on [phone number].’
2nd Call
When O has a chance to listen to her voice messages, she calls A back. A does not hear the phone ringing
as he is happily dancing away to his favourite tunes of Purple Smith. O leaves a message: ‘I am pleased to
accept but I need to increase the price to due to demand. So a discount would also no longer be on the table.
It would now be $500 per night payable by credit card, bank cheque or bank transfer.’
3rd Call
A calls back and finally gets to talk to O directly. He informs her that they would like to take the penthouse,
but he wants to check with his friends about whether the increase price is fine with them because it is above
their planned budget. O says she is happy to keep the offer open but would need an answer within 3 hours.
4th Call
A quickly connects with the other super fans and they are still excited and happy to pay the extra. An hour
after speaking with O, A calls her back and says ‘We’ll take it!’. O responds: ‘Oooops, sorry but another
group of friends offered me $700 per night so the penthouse is no longer available for these dates. Want to
come another time? Maybe I can offer you a discount then?’
8
Instructions
A is severely disappointed. The group really had their hearts set on the penthouse. You are A B and C’s
lawyer. A calls you to ask whether there is an agreement between A and O for renting the penthouse from
1–7 September 2024, and if so at what price?
Part B
You tell A to wait a day for you to contact O and convince her about the penthouse agreement. But against
your advice, the group begins to worry and wants to find a backup option.
C’s aunt Y suggests calling a distant cousin, Doky. Doky lives in Rocking Town and has previously allowed
some family members to stay at the granny flat in her backyard as a bed and breakfast. C calls Doky up on
facetime: ‘Hi cuz! Not sure if you remember me but we met ages ago at our great aunt’s 70th birthday. I am
your cousin fourth-removed, and my parents are auntie T and uncle J. Anyway aunt Y suggested that I get
in touch with you. I am coming to town with my friends A and B for Purple Smith concert and then to see
the area from 1 to 7 September, and we are having a lot of trouble finding somewhere to stay. Think you
can help us out with your granny flat?’
There is a moment of awkward silence, Doky looks as if she was about to disconnect the facetime call and
then responds ‘Cousin C? Not sure if I remember you too well. I was pretty close to hanging up this call as
I don’t recognise the number. Anyway that was a massive party right, you went a little wild I think, not sure
I can trust you with the flat…’
Realising that the granny flat might be hard to get, C continues ‘Come on, after all, we’re after all family,
right? And it is me and two of my best friends. I promise to behave much better than at the party, after all,
I am a few years older now … Oh also, whatsort of contribution to your expenses are family guests expected
to pay while staying at your granny flat for your bed and breakfast service?’
Doky still looks unsure ‘Hmm, let me think. You see I really only do this for family, and you have friends
with you.’ C nods hesitantly and says ‘yes, but we are all well behaved, I promise.’ Slowly C appears to be
overcoming Doky’s reluctance and the facetime call ends with Doky saying: ‘okay you can stay at my
granny flat but only for two nights, not your extended trip, and I will need to charge you a bit extra, say
$300 for the two nights. After all, it is not only family staying with me.’
Instructions
C tells Doky to wait a minute and calls you. C wants your advice on whether if C accepts this would be a
legally binding contract
Part C
C calls Doky back and begins to tell her your views. Doky interrupts: ‘Look I don’t know we need to be so
formal about this whole thing. But in any case, forget the money, I have a better idea. I’m a huge Purple
Smith fan too. If you can find a ticket for me and cover the cost of it, and let me join your group at the
concert, then you can all stay for only two nights. That can be our deal.’ C agrees, saying: ‘Well, that could
be tricky for a few reasons, but we’ll try!’
Doky doubts that the group can find a ticket because of Smith’s popularity, and she really wants to teach C
a lesson about taking unfair advantage of family relations. The next day, Doky reads in the newspaper that
the ticket company has a ‘no-scalping’ (meaning, re-selling at a ticket for a profit) technology that means
any ticket the group can find would be rejected and worthless. Doky hopes this happens. Between them A,
B and C find a single ticket, pay $1000 for it, and give it to Doky.
When the group gets to the venue, Doky’s ticket is marked as ‘scalped’ and refused. Doky says ‘You guys
really let me down, thanks a lot cousin! I’m going home and don’t you dare show up at my house; guess it
turns out you never thought we had a deal’. The group sleeps in their car.
Instructions
The group is very angry at Doky. They call you to ask for your advice
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