Contract Law Assignment

Question 1 Short answer questions 10 marks

Do not use ILAC, your answer need only include the relevant law and application of the law.

Alexander Comb is the owner of Stunning Hairstyles, a hair salon in Surfers Paradise. To increase custom and profits Alexander places the following advertisement in the local weekly community newsletter.

“HURRY LIMITED TIME ONLY”

“Any customer who presents a copy of the Stunning Hairstyles advertisement, on attending the Stunning Hairstyles Salon in Surfers Paradise, will be provided a haircut for the reduced price of $20.”

The newsletter including the Stunning Hairstyles advertisement is published the following Monday 1st April 2023. At first Alexander is thrilled as five new customers present a copy of the advertisement and have their haircut for $20. However, in the afternoon when a further 30 persons arrive at the salon with their copy of the advertisement Alexander regrets his decision to advertise as he and his staff are overwhelmed with customers.

Please answer the questions below

THE ADVERTISED OFFER OF HAIRCUTS FOR $20 HAS CEASED AS OF CLOSE OF BUSINESS

MONDAY 1st APRIL @7.00 PM

On Tuesday 2nd April Alexander is greeted by 25 customers queuing outside the Stunning Hairstyles Salon with their copy of the advertisement wanting a haircut for $20.

Alexander points to the sign in his salon window. He tells the waiting customers that haircuts cost $60 not $20.

1. Is Alexander legally obligated to cut the hair of the 30 persons who have arrived at the salon with their copy of the advertisement. Your answer should be based on common law contract principles, do not discuss Australian Consumer Law.
2. Can the 25 customers legally enforce their claims for a $20 haircut. Your answer should be based on common law contract principles, do not discuss Australian Consumer Law.

Question 2 Hypothetical Problem- solving Assignment 2 using ILAC 20 marks

Bonnie Butler died on June 25, 2022, from injuries sustained in a car accident. Bonnie’s husband Joseph Butler (Joe) and Bonnie’s mother Eleanor Arthur were devastated by her death.

On the day of Bonnie’s death Joe had the first of several conversations with his mother-in-law, Eleanor.

Joe: I have an appointment with Simple Funerals to discuss the arrangements for Bonnie’s funeral. Eleanor, Would you like to come?
Eleanor: Yes, I will be there. Where are you going to bury Bonnie?
Joe: I don’t know I haven’t thought about it.
Eleanor: I have two burial plots at Green Oaks Cemetery. I don’t need both. I decided that I want you to have one. I won’t take no for an answer. You can bury Bonnie in it and then you can be together when your time comes.
Joe: Thank you Eleanor. That is very generous of you.

The second such conversation occurred the following day, 26 June 2022, during a meeting with a representative from Simple Funerals.

Eleanor reiterated: I have two plots at Green Oaks cemetery. One has my mother in it. I will be buried with her because we cremated my father, and I will transfer the other to Joe so he can be buried with Bonnie.

Joe: Thank you Eleanor for your generous gift.

During the above conversation the Simple Funerals representative telephoned Green Oaks Cemetery to confirm Eleanor’s entitlement to the two burial plots.

Joe and Eleanor then returned to Eleanor’s house searched her records and found the document evidencing Eleanor’s title to the burial licence for the burial plot where Bonnie and Joe would be interred.

Eleanor did not at that stage, or later, fill out or sign the transfer printed in blank at the bottom of the burial licence or certificate for the subject plot, nor did Joe ask her to do so at that time.

Bonnie Butler was subsequently buried in Eleanor’s plot on 3rd July 2022.

Similar statements were made by Eleanor in relation to the proposed transfer to Joe of the “grave” or burial licence in subsequent conversations between herself and various family members, including Joe Butler’s sister and his daughter, Eleanor’s grandchild.

It was not until August 15, 2022, that Joe learnt from another family member, that Eleanor wanted to retain the relevant burial licence (and hence the right of nomination to the second person to be buried in the subject plot).

Joe made repeated unsuccessful attempts to obtain confirmation that Eleanor would transfer to him the burial licence for the subject plot, including making an offer on 31st August 2022 that “If Eleanor has changed her mind and no longer wishes to give it to me, I am prepared to purchase it from her at a reasonable price.”

Using ILAC and relying on common law/case law principles determine if Eleanor Arthur must transfer the burial licence to Joe Butler. Total marks 30