Hi Tutors, Just wandering if someone could provide some steps/info on the best way to tackle this question. Thankyou

 

Question 2 [15 marks]

Cyrus runs an Agribusiness, called Modern Pastures Ltd, which specialises in retailing agrichemicals and farm machinery. He has solicited your advice as to whether he has any contractual liability arising out of these circumstances:

 

On 20 September, Cyrus meets Rowan over lunch. Rowan owns a small dairy farm called ‘The Big Moo’. Cyrus tells Rowan that he has just received a consignment of 30 Ride-on mowers and asks Rowan if he would be interested in buying any. Rowan says “Send me some details this afternoon”. Cyrus sends a letter to Rowan in which he writes: “I offer to sell you four (4) John Deere 125 Ride on mowers at $ 3450 each, with delivery on 10 October”. Rowan puts a reply in the mail on 25 September which says “I accept your offer”. On 27 September, Cyrus telephones Rowan and says “Look, I’ve decided to sell the mowers to my cousin. You have had long enough to think about this contract, and since I haven’t heard from you, I am revoking my offer.” Rowan’s letter reaches Cyrus on 29 September.

 

Cyrus wishes to purchase a coffee shop in Mount Victoria, a small town in the Blue Mountains. He feels anxious to ensure that he would obtain a new lease for the premises where he is to run the business after the existing lease of the business premises expired. James, the landlord, indicated verbally that he would do this provided Cyrus complied with the existing lease. On 26 July, he sent a letter to Cyrus confirming this representation. Cyrus purchased the business and James refused to grant a new lease even though Cyrus had complied with the terms of the existing lease.

 

Cyrus is feeling overwhelmed by the vicissitudes of this world and decides to enter a religious order called ‘The brotherhood of the covetous lads’ of which the brother superior is Mr Fallacious. In accordance with his vows of poverty, Cyrus is asked to give substantial sums of money, a total of $ 320,000 AUD) to Mr Fallacious for the purpose of the order. Six months after joining the order, Cyrus met Victor and fell madly in love with him. He decides to leave the order to marry his beloved and asks Mr Fallacious for his property to be returned to him. Mr Fallacious refuses. Cyrus id very upset as he needs the money to purchase a house for him and his partner.

 

Assume that you are Cyrus’ solicitor and that he has asked you for legal advice. Advise him as to what contractual liability, if any, he has in the above circumstances, citing relevant statute and case law authority, using the ILAC format.