Shrestha Tailor is a budding fashion designer in Sydney whose aim is to design her own
clothes and sell them through a retail outlet owned by her. She decided to look for suitable
premises from which to sell her clothing designer goods. However, since she knew she
would not be able to finance this entire business, she asked her aunt for help to start her own
business.
Shrestha’s aunt, Mrs Moneypenny, owned many properties in Harris Park (Sydney). She
agreed to lease one of her shops to Shrestha at half the rental she would normally charge.
Shrestha inspected the premises and told her aunt that she would like to make some
alterations to the layout so as to give the clothing shop’ a smartdekko’ appearance.
Shrestha told her aunt that she wanted to start on the renovations immediately and would
speak to the local Council in Parramatta to get the necessary permits. Shrestha also agreed
that she would pay for these alterations which, after quotes had been given, were calculated at
$65,000. Shrestha told her aunt however, that she did not want to start on the renovation
project unless her aunt was certain that the property was for rent at the amount agreed.
Mrs Moneypenny said she would let Shrestha know in the next few days if she changed her
mind about renting the building. Shrestha also said that the opening of the shop on the date
agreed to in the proposed lease would help her to market her clothing designs from which she
expected to receive a healthy financial return. It was estimated that the renovations to the
shop would take six months, by which time Shrestha would have designed and created
clothes in time for the new fashion season.
A week after Shrestha spoke with her aunt, she started on the renovation project, having
heard nothing from her aunt. After several weeks after the renovation work began, Shrestha
noticed her aunt peeping into the window of the building in which the renovations were in
progress.
Before the lease to rent the building was signed and just as the renovation work was almost
complete, Mrs Moneypenny advised Shrestha that she, as the potential landlord, no longer
wished to continue with the arrangement because she received a higher rental offer from Mr
Rich. Shrestha was very disappointed and wished that she had a signed lease. Her best
2
friend, Pinky, who is studying law but who has missed many classes told her that there is
nothing Shrestha can do. Besides, Pinky also told Shrestha that the law will not allow her to
sue her close relative. Pinky advised Shrestha to go to the temple and pray for good luck to
try and get $65,000 back.
Advise Shrestha Tailor as to her legal rights with reference to relevant principles of contract
law. Give reasons for your answer based on contract law and relevant precedents.
Shrestha Tailor is a budding fashion designer in Sydney whose aim is to design her own clothes and sell them through a retail outlet owned by her. She decided to look for suitable premises from which to sell her clothing designer goods. However, since he knew she would not be able to finance this entire business, she asked her aunt for help to start her own business.
Shrestha’s aunt, Mrs Moneypenny, owned many properties in Harris Park (Sydney). She agreed to lease one of her shops to Shrestha at half the rental she would normally charge. Shrestha inspected the premises and told her aunt that she would like to make some alterations to the layout so as to give the clothing shop’ a smart dekko’ appearance. Shrestha told her aunt that she wanted to start on the renovations immediately and would speak to the local Council in Parramatta to get the necessary permits. Shrestha also agreed
that she would pay for these alterations which, after quotes had been given, were calculated at $65,000. Shrestha told her aunt however, that she did not want to start on the renovation
project unless her aunt was certain that the property was for rent at the amount agreed.
Mrs Moneypenny said she would let Shrestha know in the next few days if she changed her mind about renting the building. Shrestha also said that the opening of the shop on the date agreed to in the proposed lease would help her to market her clothing designs from which she expected to receive a healthy financial return. It was estimated that the renovations to the
shop would take six months, by which time Shrestha would have designed and created clothes in time for the new fashion season.
A week after Shrestha spoke with her aunt, she started on the renovation project, having heard nothing from her aunt. After several weeks after the renovation work began, Shrestha noticed her aunt peeping into the window of the building in which the renovations were in progress.
Before the lease to rent the building was signed and just as the renovation work was almost complete, Mrs Moneypenny advised Shrestha that she, as the potential landlord, no longer wished to continue with the arrangement because she received a higher rental offer from Mr Rich. Shrestha was very disappointed and wished that she had a signed lease. Her best
2 friend, Pinky, who is studying law but who has missed many classes told her that there is nothing Shrestha can do. Besides, Pinky also told Shrestha that the law will not allow her to sue her close relative. Pinky advised Shrestha to go to the temple and pray for good luck to try and get $65,000 back.
Advise Shrestha Tailor as to her legal rights with reference to relevant principles of contract law. Give reasons for your answer based on contract law and relevant precedents.
Requirements for a pass/good mark:
1. A legal analysis of the question with reference to relevant legal principles (case law).
2. Students are expected, as a minimum requirement, to reference the relevant chapters in the prescribed textbook and to draw supporting information from there in support of the answer.
3. You are generally advised not to use the internet for resource materials, especially if you are unfamiliar with the topic (as it may be unnecessary and you run the real risk of drawing on irrelevant information or legal information from other countries that are irrelevant to Australian law). Your prescribed textbook, and the references therein, is more than adequate to answer the question.
4. With those cautionary remarks in mind, only use internet sources that are relevant, accurate and reliable – remember, Wikipedia is not a reliable/credible source of academic information and is not to be trusted.
5. Students are expected to footnote references to case law and to provide a bibliography of books and journal articles consulted.
6. Marks will be deducted if the answer does not meet the minimum word count – a
word count must be indicated on the cover sheet.
