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Minh has a large jewellery collection and likes to invest in precious jewels, such as diamonds.  Minh saw a beautiful diamond ring in the window of Fine Jewellers. She spoke to the sales person who

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Minh has a large jewellery collection and likes to invest in precious jewels, such as diamonds. Minh saw a beautiful diamond ring in the window of Fine Jewellers. She spoke to the sales person who thought the diamond was of very high quality. Minh purchased the diamond for $5,000 and shortly after had it valued for insurance. The expert who valued the diamond said, “This is worth about $100, it is full of flaws and rubbish quality.” Both Minh and Fine Jewellers were shocked, as they had both believed the diamond was a genuine high quality diamond. Advise Minh whether or not she can...

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Minh has a large jewellery collection and likes to invest in precious jewels, such as diamonds. Minh saw a beautiful diamond ring in the window of Fine Jewellers. She spoke to the sales person who thought the diamond was of very high quality. Minh purchased the diamond for $5,000 and shortly after had it valued for insurance. The expert who valued the diamond said, “This is worth about $100, it is full of flaws and rubbish quality.” Both Minh and Fine Jewellers were shocked, as they had both believed the diamond was a genuine high quality diamond. Advise Minh whether or not she can avoid the contract and get her money back because of the mistake. Use relevant cases to support your answer. Do not discuss the Australian Consumer Law. On the 5thAugust, Oscar writes to Angus and offers to sell him his boat for $20,000. Oscar decides he loves his boat and now does not want to sell it so on the 7thAugust Oscar writes another letter to Angus telling him he revokes his offer. Angus writes a letter to Oscar on the 7thAugust accepting Oscar’s offer to buy the boat. Angus receives Oscar’s letter on the 8thAugust revoking his offer. Oscar received Angus’ letter of acceptance on the 9thAugust and is now saying that they do not have an agreement because he revoked the offer. Advise Oscar whether he has to sell the boat to Angus. Use relevant cases to support your answer. Abbey buys a new laptop online at ‘SELL COMPUTERS.COM’. The laptop is delivered to her house and the driver asks her to sign a document to confirm that she has received the laptop. Abbey signs the document as requested. Abbey did not read the document before signing it. When Abbey opens up the box the laptop is damaged and the screen is cracked. Abbey contacts SELL COMPUTERS.COM and they tell her that the document she signed contains a clause that states, “SELL COMPUTERS.COM inspect all goods leaving their warehouse and is not liable or responsible for any damage to goods that occurs after the goods have left the warehouse.” Advise Abbey whether SELL COMPUTERS.COM can rely on the term excluding their liability. Explain your answer with reference to relevant cases. Do not discuss the Australian Consumer Law. Travis was digging holes along the boundary of his property to build a new fence. Unfortunately while he was digging he destroyed some electricity cables that were underground. The cables connected electricity to his neighbour, Bill’s property. Bill was very angry, as he had no electricity. Bill said to Travis, “I am going to take you to court and sue you for cost and inconvenience of what you have done to me.” Travis said to Bill, “Calm down, please don’t take me to court and I will just pay you $2,000.” Bill agreed. Travis now refuses to pay the $2,000, as he believes they do not have a contract. Advise Travis if he has to pay the $2,000 that he and Bill agreed on. Jim enters into a contract with BIGSHEDS to build a shed in his backyard for $20,000. BIGSHEDS finish building the shed however there are defects. The roller doors do not work and the gutters and downpipes leak water. Jim is refusing to pay BIGSHEDS the $20,000, as they have not completed the contract exactly as required. Jim has to pay SHEDS R US $3,000 to fix the defects. Advise Jim if he has to pay the $20,000 to BIGSHEDS. Explain your answer with reference to relevant cases. Raj owns a beautiful and large property in the Yarra Valley. Sumit loves Raj’s property and he said to Raj, “If you sold the property, how much would you want for it?” Raj replied, “Well, you know I love my property, so for me to part with it, it would be $2,000,000.” Sumit says, “It’s a deal. I accept your offer.” Advise Sumit whether he has an enforceable agreement with Raj. Use relevant cases to support your answer.

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The execution of valid contract creates right and obligation of parties to the
transaction. However as per the Australian Contract Act, the parties to the contract
get discharged from their obligation if the contract was executed under mistake.
The mistake can be either mistake of fact or mistake of fact. The contract can be
said to have executed under mistake of fact if either one or both the parties to the
contract was under different impression regarding subject matter of contract, its
characteristics and terms of contract.

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