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Question 1 (Elements of a Simple Contract )
Francesca wants to rent an apartment closer to the University she attends. However, she doesnt have enough money saved to pay for her rental bond so she needs to work over the summer vacation. She visits her Grandmother, Julie and tells her that she is looking for work. Julie says to Francesco, Francesca, you can help me by selling some of my old furniture. I will pay you a commission for every sale you make. Are you interested?
Francesca says that she is interested but wants to know how much commission will her Grandmother pay her? Julie tells Francesca she will pay her a commission of 20% of the sale price she receives on every item of furniture sold. Julie and Francesca arrange to have a garage sale at Julies house next weekend. During the week Francesca places notices around the neighbourhood and arranges online advertising of the garage sale at Julies house.
The following week-end Francesca displays the furniture to be sold in Julies front yard. The garage sale is a great success and by lunch time all of Julies furniture is sold, except for Julies old piano. Total sales of the furniture amount to $8000.
Julie tells Francesco to lower the price of the old piano. Francesca places a price tag on the piano which says Steinways Piano in mint condition $600 or nearest offer. Bill and Silvia attend the garage sale. Both want to purchase the piano. Bill says to Francesca Ill buy it for $200. Francesca wanting to increase her commission asks Silvia if she would pay more? Bill and Silvia continue to make bids for the piano, until losing his patience Bill slams his hand down on the piano and says to Francesca $599 and thats my final offer. Francesca shouts Done, we accept. Later that afternoon, Bill arrives with a moving van to collect the piano. Bill pays Julie $599 and proceeds to move the piano into the moving van with the help of his two sons. However, Bill miscalculates the weight and strength needed to move the piano up the ramp and into the van. When nearing the entrance to the back of the van, the piano slides off the ramp to the ground and is damaged beyond repair.
Bill demands that Julie return his money as he believes the piano was not of merchantable quality and should have survived the fall. Francesca wants her commission, but Julie is refusing to pay, saying that family members should help one another without any payment being necessary. Francesca protests and Julie tells her, take $100 in full settlement of what I owe you or you will get nothing from me.
Using ILAC, answer the following:
Advise Bill whether he can claim any compensation from Julie? (7.5 marks)
Can Francesca recover the remaining commission owing to her from Julie?
(7.5 Marks)
Word Count : Maximum 1000 words
No Reference list is required.
Please submit an assignment cover sheet with your answer.
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