PART A
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Case Study Analysis and Application
Monica owns a horse ranch in New South Wales where she breeds and trains champion horses. When one of the fences on the ranch was damaged in a recent storm, Monica hired Joe, a local builder, to remove and replace the broken fence.
During negotiations, Monica told Joe:
‘I’m in a rush
for the fence to be fixed because we had to move the horse that uses that paddock, to a neighbouring farm for agistment. They are charging us $150 per day. If you agree to take this job, you have to get it done straight away with no delays.
’
Joe agreed to take the job on these conditions and contracts were signed.
The next day Joe arrived at 6am and immediately removed the broken fence. Unfortunately, due to a scheduling error, Joe was not able to return to
Monica’s
ranch to build the new fence until 3 weeks later. During that time, Monica paid a total of $3,150 in agistment fees to her neighbour and, unbeknownst to Joe, she also lost around $5,000 in expected income when she was forced to cancel all of her weekly horse riding lessons during the three week period.
Monica is furious and believes she has a right to terminate the contract and sue Joe for damages.
Q1) Refer to case law and discuss whether Monica has a legal right to terminate the contract and sue Joe for the $3,150 agistment fee for her horse. (6 marks)
(In your answer, you must refer to Luna Park v Tramways Advertising Pty Ltd and Associated Newspaper v Bancks and analyse whether the time for repairs to be carried out was a condition of the contract)
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