JUST3003 BUILDING LAW

JUST3003 BUILDING LAW

SPRING 2023

SHORT ANSWER QUESTION ASSESSMENT

DUE SATURDAY 19 AUGUST 5pm

A busy Building Law student at Western Sydney University did not have time to do their readings or attend their lectures in their first weeks of Spring semester, 2023. They decided to catch up on this work by asking a Generative AI chatbot to answer some questions for them. The questions, and the Chatbots answers, appear below:

Question 1:

Paul Stratford (a builder) gave a quote to build an extension to the front of John and Angela Porter's house at Penrith for $92,530. Seven days later John and Angela accepted the quote by sending a text saying, Thanks for your quote which is accepted. Can you please let me know when the work can start. Seven days later Paul started the work. Just prior to completion John and Angela noted that no doors were installed to any room, including the front door to the extension. When John and Angela questioned Paul he said, Doors were not mentioned in the quote and therefore I don't have to install them.

Advise John and Angela.

Chatbots answer:

Obligations also may arise under a contract by implication (to paraphrase Lord Diplocks terminology in Photo Production Ltd v. Securicor Transport Ltd [1980] A.C. 287 at 850). A term may be implied by law or be implied from the facts Greaves & Co. (Contractors Ltd v. Baynham Meikle & Partners [1975] 1. W.L.R 1095). The conditions necessary to support the implication of a term were summarised in the majority judgment of the Privy Council in B.P. Refinery (Westernport) Pty Ltd v. Hastings Shire Council (1978) 52 A.L.J.R. 20 at 26 and restated in Codelfa Construction Pty Ltd v. State Rail Authority (N.S.W.) (1982) 49 C.L.R. 337 at 347:

(1) it must be reasonable and equitable;

(2) it must be necessary to give business efficacy to the contract, so that no term will be implied if the contract is effective without it;

(3) it must be so obvious that it goes without saying:

(4) must be capable of expressions;(4) You must also prove it beyond reasonable doubt which you will not be able to so you will not succeed.

(5) It must be clear and must not contradict any terms of the Contract.

Question 2:

Two brothers, Steve and Allan, both builders, discussed at home at night about building 8 townhouses. Steve said, Ill borrow the money to buy the land with the security of my house. We will use the land we purchase as security to borrow money to pay for the construction build and materials.

There were lots of discussions between the brothers regarding the purchase for the construction project and it was agreed the profit would be divided 50/50.

Steve borrowed the money from his bank to buy the land, and Allan used this money to purchase a block of land at Maroubra.They constructed 8 town houses but due to Covid and the banks putting interest rates up, the development did not make a profit and only covered the cost of construction but not the money Steve had borrowed from the bank.

Advise Steve whether he can recover from Allan half of the money he has borrowed from the bank.

Chatbots answer:

These facts are similar to the case of LICHAA v LICHAA NSWSC 2010. In LICHAA v LICHAA, the court found in favour of the family member who was seeking reimbursement of money borrowed separately from the development, and ordered the reimbursement as claimed. Applying the legal principles of the case of LICHAA v LICHAA, Steve can recover half the money owed to the bank.

Question 3:

S.H.A.C.N Pty Ltd quoted to construct 6 units for George Jackson on a site at Glendening. The quote was $2,692,000. After some discussion on various items George Jackson said, I'm happy to go ahead. A representative fromS.H.A.C.N Pty Ltd said, I will get our lawyers to draft a contract which should be with your lawyers within two weeks.

Seven days later the representative of the company phoned George Jackson and said words to the effect, We are not in a position to proceed to build for you, so we have been instructed not to send you a contract.

Advise George Jackson about whether he has a valid enforceable contract with S.H.A.C.N Pty Ltd.

Chatbots answer:

The Supreme Court of NSW in the decision Nader v Ronca NSWSC 2011quoting the case of Masters v Cameron 1954 CLR 353 said, For a party to be bound it must be evident that the party wished to be bound immediately.

Applying the Nader case and the Masters case to the facts here, there is clearly a valid enforceable contract.

Instructions:

Students must answer the following questions:

Is the Chatbots answer to question 1 accurate? Why/why not? Please ensure that you refer ONLY to the lectures and readings from Weeks 1-4 in JUST3003 Building Law to explain your answer, and correctly acknowledge these sources (500 words).

Is the Chatbots answer to question 2 accurate? Why/why not? Please ensure that you refer ONLY to the lectures and readings from Weeks 1-4 in JUST3003 Building Law to explain your answer, and correctly acknowledge these sources. (500 words)

Is the Chatbots answer to question 3 accurate? Why/why not? Please ensure that you refer ONLY to the lectures and readings from Weeks 1-4 in JUST3003 Building Law to explain your answer, and correctly acknowledge these sources (500 words).

The importance of 'ON TIME" cannot be overstated.

Use 'ON TIME' same basis as a Wedding Dressmaker:-Wedding date:1st November 2021

Delivery date:25th October 2021

Deliver on:24th October 2021 - Fantastic!!

Deliver on:25th October 2021 Good!

Deliver on:31st October 2021 Frantic client!!

Deliver on:3rd November 2021 devastated, produc t

useless.

Same product was delivered in items 1-6 above, but different effect.

GINA RINEHART TOPS RICH LIST WITH WEALTH OF $34 BILLION, UP $3 BILLION

THE RICHEST 200 AUSTRALIANS ARE NOW WORTH HALF A TRILLION DOLLARS

NUMBER OF WOMEN ON RICH LIST IS 37

AUSTRALIA HAS A RECORD 137 BILLIONAIRES, UP FROM 111

THERE ARE 13 NEW RICH LISTERS

YOU NEED TO BE WORTH $629 MILLION JUST TO GET ONTO THE RICH LIST

25-YEAR-OLD ROBERT FERGUSON IS THE YOUNGEST EVER RICH LISTER, WHO ALONGSIDE HIS 30-YEAR-OLD BROTHER JAMES IS WORTH 1.01 BILLION THANKS TO THEIR CRYPTO PLATFORM. THE OLDEST IS LEN AINSWORTH, AGED 98 AND WORTH $5.65 BILLION

Mining magnate Gina Rinehart has topped theFinancial ReviewRich Listfor the third consecutive year, becoming Australias richest person worth a record $34.02 billion up $3 billion from last year.

There are13 debutantes on the 2022 Rich List, helping drive the total wealth of Australias top 200 past half a trillion dollars to $555 billion, up from $480 billion in 2021, making the past year a record period for wealth creation. There are a record 137 billionaires in Australia, up from 111 last year.

The economys main sectors iron ore, property, tech are well and truly leading the recovery out of COVID-19, with the overall wealth of the 10 richest people, a record $219 billion, representing 40 per cent of the Rich List.

With wealth creation accelerating, it now takes $629 million just to get on this years Rich List. Based on theFinancial Reviews unrivalled and constantly updated database, the Rich List includes nine billionaires in the elite ten-digit club those with wealth exceeding $10 billion. This year also sees 37 women on the list.

The full 40th annual Rich List, compiled by editors Julie-anne Sprague and Michael Bailey, will be available on www.afr.com and will appear in a special edition ofThe Australian Financial Review Magazinein this FridaysFinancial Review.

Strong iron ore prices have put a wind in the sails of Pilbara mining mogul Andrew Forrest,who comes in at No.2 with a wealth of $30.72 billion, trebling his wealth from 2019 when he was worth $8 billion.

But during a momentary dip in iron ore prices, the oreligarchs run at the top of the Rich List was momentarily snatched by the giants of big tech.

Atlassians Mike Cannon-Brookes briefly became Australias richest person last year as his companys shares soared at the same time as iron ore prices tumbled. However Atlassian shares fell pushing him below the iron ore miners and into 3rd place with an estimated wealth of $27.83 billion and Scott Farquar is the 4th wealthiest Australian with a fortune of $26.41 billion. Rich List valuations were ruled off in mid-April.

A surge in online shopping relying on packaging has benefited Anthony Pratts cardboard box manufacturer Visy, helping take him and his family to a new level of wealth, now worth $24.30 billion, up from $20.09 billion, and in 5th spot.

As Australias real estate market continued to soar during the past year, Meriton founder Harry Triguboff has built his wealth from $17.27 billion to $21.25 billion in 2022 and remains at 6th place. So successful is his company, that it is estimated that one in 10 units in Sydney is a Meriton build.

And while Clive Palmer may not have had the federal election he was hoping for, the last year has seen his wealth increase from $13.01 billion to $19.55 billion and remains at No.7 thanks in part to his 2006 royalties deal with Chinese mining giant CITIC. The resources boom has also allowed former Glencore CEO Ivan Glasenberg to join the ten-digit club, creating a wealth of $12.20 billion, up from $7.39 billion, and placing 9th on the List.

Its been a rollercoaster of a year for Canva founders Melanie Perkins and Cliff Obrecht, who occupy 8th spot with $13.80 billion, down $3 billion from their October Young List Rich appearance thanks to a Nasdaq slide.

Rounding out the Top 10 is titan of business Frank Lowy, who has invested shrewdly since offloading Westfield in 2018. Hes worth $9.27 billion, up from $8.51 billion last year.

This years Rich List has the widest gap between the nations youngest and oldest entrepreneurs, proving age is no barrier to wealth creation. Of the 13 new people joining the list, 7 are aged 40 or under, Rich List co-editor Julie-anne Sprague said.

There are some notable departures this year as rising inflation and interest rates resets investor appetite for growth stocks. Some bigger names to fall off the list include Zip Cos Larry Diamond whos wealth has plunged from $598 million to less than $70 million over the past year, said Sprague. As some fortunes fall, others rebound. Flight Centres Graham Turner and wife Judy Turner, who operates their Spices Retreats, rejoin the list after a two-year hiatus.

Rich List co-editor Michael Bailey said: Its been fascinating to watch the Rich List rollercoaster ride this year, with fortunes based on software growing exponentially then falling just as dramatically as the Rich List was being finalised. Technologists have joined the miners as a new source of volatility on the List The Financial Review Rich List is available onwww.afr.com. A Rich List edition ofAFR Magazine,featuring profiles of our richest people and analysis of the trends that are making them even richer, is available nationally tomorrow Friday, May 27.

The Financial Review Rich List 2022 Highlights

TOP 10 (worth a collective $219.35 billion)

Gina Rinehart $34.02 billion (up from $31.06 billion) Resources, Agriculture

Andrew Forrest $30.72 billion (up from $27.25 billion) Resources

Mike Cannon-Brookes $27.83 billion (up from $20.18 billion) Technology

Scott Farquhar $26.41 billion (up from $20 billion) Technology

Anthony Pratt & family $24.30 billion (up from $20.09 billion) Manufacturing

Harry Triguboff $21.25 billion (up from $17.27 billion) Property

Clive Palmer $19.55 billion (up from $13.01 billion) Resources

Melanie Perkins and Cliff Obrecht $13.80 billion (up from $7.98 billion) Technology

Ivan Glasenberg $12.20 billion (up from $7.39 billion) Resources

Frank Lowy $9.27 billion (up from $8.51 billion) Property

STATE BY NUMBERS

NSW 79 Rich Listers (72 last year)

VIC 60 (58 last year)

QLD 19 (21 last year)

WA 18 (20 last year)

SA 3 (1 last year)

NT, ACT 2 each (1 each last year)

TAS 1 (1 last year)

TOP 5 WOMEN RICH LISTERS (Combined wealth of $58.03 billion)

Gina Rinehart (ranked 1) $34.02 billion

Melanie Perkins with Cliff Obrecht (8) $13.80 billion

Alexandra Burt & Leonie Baldock (25) $4.22 billion

Katie Page with Gerry Harvey (31) $3.26 billion

Betty Klimenko & Monica Weinberg-Saunders (39) $2.73 billion