Please answer these two problem solving questions using ILAC.
Question 1 [15 marks]
Olivia Poppe and her friend Fitz were returning home after leaving their favourite pub, The White House. There is a pedestrian path that leads directly to the apartment where Olivia lives. It would take about one hour and a forty five minutes to make the journey. Because Fitz is extremely tired and Olivia is dying to see her handsome boyfriend, Jake, the pair decide to borrow a couple of bikes from their friend Cyrus, to ride along the cycleway which runs parallel to the freeway to the city. The cycleway will enable them to reach Olivia’s apartment in about 25 minutes. Cyrus advised them to use the cycleway as opposed to the actual freeway. They are feeling adventurous and decide to disregard Cyrus’ advice and ride along the freeway. There are several notices which read “DANGER ! DO NOT WALK OR RIDE ALONG THE FREEWAY”. They are not wearing fluorescent or reflective garments and Olivia’s bike is missing its red rear reflector. Both bikes lack front lights although Fitz’s has a flashing tailing.
As Olivia and Fitz ride along the freeway, Jake rings Olivia’s phone and she answers it. In the meantime, a car driven by Huck comes around a bend in the freeway. Huck takes his eyes off the road for a moment as he rummages through his man-bag to locate his phone which is ringing. His car veers to the left, but Huck is unable to manoeuvre the vehicle which crashes into Olivia and Fitz's bikes, injuring Olivia. Olivia suffers from Osteogenesis Imperfecta (Brittle Bone syndrome) and as a result of her condition, and the collision, she broke three of her limbs. Because of the delay caused by the traffic accident, another driver, Quinn, is stuck in traffic. She is an electrician and because she cannot get to her next repair job of fixing the refrigerators in Mellie’s restaurant, Mellie has to dispose of $7,500 worth of Wagyu beef which goes bad.
Advise all parties on any/all liabilities arising from these facts, citing relevant statutory and case law authority, using the ILAC format.
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.