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LAWS5002 CONTRACTS MID-SEMESTER TAKE HOME

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LAWS5002 CONTRACTS MID-SEMESTER TAKE HOME PROBLEM, S1, 2020
Due Date: 20 April 2020 at 7pm Length: 1,500 words maximum
Refer to Unit of Study detailed information on Canvas, pp. 10-14, for details on submission, referencing,
penalties for late submission and for excess word count, as well as the assessment grading guidelines.
Please note the following amendments to the assignment instructions in the Unit of Study outline:
1. Assignments must be submitted online via the Canvas site for LAWS5002, which can be accessed via
canvas.sydney.edu.au, by following the instructions for online submission.
2. No hard copy of the assignment is to be submitted at the Law School Reception.
3. The mid-semester take home problem is NOT a research assignment. You should be able to answer the
question by using the material discussed in lectures and tutorials, the cases and statutes listed in the Unit of
Study reading list, as well as those discussed in lectures and tutorials. To the extent that it may be helpful for
1
your analysis, you may decide to read some of the more relevant cases in full, in addition to relying on the
casebook extracts.
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4. For formatting purposes, please use an 11-point font as a minimum and use 1.5 line spacing. You may start
with a brief and concise summary of your advice, before setting out that advice in detail. You may use
headings and subheadings as necessary to make the structure of your advice clear.
5. You must cite the authorities you use (i.e., any cases or statutes relevant to your advice) by way of
footnotes. Citations should follow the Australian Guide to Legal Citation, which has now been released in its
4th edition. Please see: https://libguides.library.usyd.edu.au/c.php?g=508212&p=3476376
LAWS5002MIDSEMESTERPROBLEM2020,Page2|4
Instructions
You work for the firm of Dendy & Co as a junior lawyer. Dendy & Co have been approached by Bob. The senior
partner in the firm, Claire Dendy, asks you to draft a memorandum of advice on the legal issues arising from
the summary of facts prepared by the summer clerk, Cecil Barber.
Based on the summary of facts below, prepare a memorandum of advice about Bob’s rights against Eunice.
You should also consider whether Bob has any rights against Craig. In preparing your memorandum, you
should focus your advice on the availability of causes of action, rather than advising on the final remedies Bob
might be able to obtain under such causes of action.
Claire has told you that in preparing your memorandum, you should consider any applicable formality
requirements under the Home Building Act 1989 (NSW), focusing in particular on s. 7 and s.10 of that Act. You
should assume that Bob is a licensed building work contractor for the purposes of the Act. Note that, for
purposes of s. 7 of the Act, the “prescribed amount” under the Home Building Regulation 2014 (NSW) is
$20,000 for contracts entered into after 1 March 2015. The events described in the summary of facts took
place in 2020.
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SUMMARY OF FACTS
[1] Eunice works as a psychologist in Sydney. She decided to make an extension to her family
house
1 to enable her to set-up a remote, online counselling office to work from home. She
contacted Bob, an old school friend who is a registered licensed builder, to carry out the

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work.
[2] Bob came to Eunice’s house, and upon inspecting the property and the plans for the
extension told Eunice that the work should cost $22,000. Eunice replied, “Thanks Bob!
Sounds like a fair price.”
[3] As he was leaving, Bob said to Eunice “Great, I’ll head back to the office and arrange to
have a quote sent for you to look over and sign. Is e-mail ok?” Eunice responded “Sure is.
Please send it quickly. I need the work done as soon as possible!”
[4] Two days later, not having received the quote from Bob, Eunice sent Bob the following email message: “Hi Bob. I really am in
a hurry to get the building works done. Just start as
soon as you’re ready, even if the quote hasn’t been sent yet. Don’t worry, I’ll sign it.”
[5] Upon leaving Eunice’s, Bob had telephoned one of his suppliers, Craig. He asked Craig if
he could supply 1,000 bricks for Eunice’s construction job. Craig said he could supply 1,000
bricks for $1,200.
[6] In response, Bob told Craig, “Sounds like an ok price. Could you do it for $1,000?” Craig
said, “I’ll have to check, but it shouldn’t be a problem. Leave it with me and I’ll get back to
you.”
[7] About a week after receiving Eunice’s e-mail message, Bob began to work on the
extension. Bob sourced materials from other suppliers, but was hoping that he would
hear back from Craig about the bricks.
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[8] Bob and Eunice had numerous conversations about the progress of the work as the days
went on. Bob did send Eunice the quote about the building project via e-mail before
starting the work, but both him and Eunice forgot to follow up about it.
[9] A couple of weeks after Bob’s conversation with Craig, Bob began to worry because he
was
1 going to need the bricks soon. Bob contacted Craig via SMS message, stating, “I really

need those bricks, mate, so just send them to me at the original price you quoted me.”

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Craig replied, “Sorry, I can’t do that. Supplies are running short. If you still want them,
you’ll need to pay $1,800.” Bob messaged back, “Listen, we had a deal. I want those bricks
for $1,200.” Craig failed to respond to that message.
[10] As he was running late with Eunice’s extension, Bob decided to source the bricks from
another supplier, who was charging $2,000 for 1,000 bricks. Due to the delay, Bob was
also concerned that he may have to pay his workers extra to work longer on the
extension.
[11] One day while Bob was on site he had a conversation with Eunice. Eunice explained
that her whole family is stuck at home due to recent events, and that she needs to be able
to run her counselling service from home without interruption for her patients. She
stressed again that she needed the extension completed as soon as possible. Bob told her,
“Eunice, the job will probably take longer than I originally told you. I can do my best to get
it done quickly, but I’m going to need you to pay me an extra $5,000.” Eunice anxiously
responded, “Sure, okay, just get it done!”
[12] After the extension to Eunice’s house was completed, Bob sent her the invoice with
the additional $5,000 included, requesting a total payment of $27,000. Eunice, however,
has refused to pay the bill. Eunice never signed the quote, and she argues that when they
spoke about the $5,000, she thought this was part of the original $22,000 estimate.

U N C AT E G O R I Z E D

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