Sam owns and operates a garden shop and landscaping business. In February 2011, he manages to procure a large quantity of old railway sleepers. These sleepers are highly coveted by many gardeners for use as decorative retaining walls, borders and garden steps. As part of marketing plan intending to increase customer loyalty, Sam sends a pamphlet to his regular customers telling them a special price for the sleepers.
Top quality railway sleepers for sale, Ideal for retaining walls, borders and garden steps. Special price of $100 for 5, while stocks last
The weather, however, stays very mild for the time of year and Sam’s landscaping business sales soar. By May sales are still high. Sam negotiates with his supplier for another load of sleepers. Due to high demand these sleepers are more expensive.
Sam must sell them $100 for 3 to make the same profit. Sam does not send out a pamphlet this time; instead he places a sign on the sleepers in his yard which tells of the new price.
Parball and Sonia, a newlywed couple have been saving up for landscaping their garden. They intend to enter a contest for the TV Home and Garden Show. They relied for their budget on Sam’s pamphlet. When they arrive at Sam’s yard and find sign for the new price of the sleepers they are upset. The price would not allow them to finish their project in time for the contest. Parball and Sonia show their pamphlet to Sam and demand the sleepers at the lower price.
Required: Advise Sam as to whether he is bound by the lower price. In your answer rely on the Contract law only. You do not need to consider Australian Consumer Law in support of your advice. (17.5 marks)
Assignment Assessment Criteria
You will be assessed on the extent to which you have: answered the task questions; used good English expression, correct spelling, good punctuation and grammar and have proof read your work; used a logical structure, with headings. (It is important that you develop the capacity to communicate professional advice clearly. In order to do this you need to carefully structure your answer in such a way that anyone reading your work is made aware of what is going to be talked about, and is led in a logical way through the arguments to a conclusion); been able to identify, set out and discuss relevant legal issues, legal principles and cases, as appropriate; used statutes and cases to support your arguments, as appropriate. You must rely on cases to explain/support/justify the arguments you are making but these cases can be obtained from textbooks. You are encouraged to use cases which have been discussed in the classes and which can be found in textbooks. The selection of cases, however, is up to you. What is important is how the cases you have selected support your arguments; analysed, argued or discussed as required by the task questions; and found, read and used other textbooks.
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