Instructions: YOU MUST ANSWER THREE QUESTIONS FROM THE FOUR QUESTIONS GIVEN. ALL QUESTIONS ARE OF EQUAL VALUE Answers must be presented in essay format with proper referencing. Cases and legislation must be cited and quotes from other sources referenced. For items from the course materials it is sufficient to cite the original document. A bibliography is not required. Answers should be typed on single sided A4 paper using Times New Roman, size 12 font and double spaced using standard margins. Clearly number each page of your answers and show the number of the question you are answering. Each answer should be 800 words. Bill received the letter on 14 December and posted a letter accepting the offer, although he had heard that day from a neighbour that it was rumoured that Jon had offered $12,000 for the business. On 17 December, Jill changed her mind and sent a letter cancelling her offer. Bill received this letter on 18 December one day before Jill received Bill's acceptance.

Does Bill have an enforceable agreement to purchase the business? Explain with reference to relevant authority.

Question 2: Jasper operated a storage business from a large warehouse in Sydney. Persephone, who was an antique furniture dealer, had recently purchased some antique chairs and clocks at the auctions and required some short-term storage space for her excess stock.

Persephone took the excess stock to Jasper's warehouse. While Jasper and Persephone were negotiating on price, Jasper produced a document titled "storage receipt" and mentioned that Persephone would need to sign it if she wanted to store her stock in the warehouse.

Persephone was in such a rush that she signed the document without reading it as soon as they agreed on price. Jasper then gave Persephone a copy of the document saying, "You'll need to bring your receipt with you when you collect your stock."

The chairs and clocks were stored on the bottom floor of the warehouse. Three weeks later there were severe storms and the bottom floor of the warehouse was flooded.

Persephone heard that the warehouse had been flooded and went to check her stock. She discovered that the chairs had been totally ruined by the flood and that the clocks were missing. It appeared that one of Jasper's employees had mistakenly released the clocks to a man three days before the flood even though the man did not have the receipt.

Persephone demanded that Jasper pay her the value of the damaged chairs and stolen clocks.

Jasper refused and drew her attention to the following clause written on the receipt:

"We do not accept any responsibility for the loss of or damage to any item stored on our premises."

Persephone protested that she had never read the receipt.

Advise Persephone whether she can recover the value of the damaged chairs and stolen clocks

Question 3: Edna negotiated to buy Flora's farm and stock. Flora assured Edna that there were about 10,000 sheep on the property of which half produced the finest grade wool. In fact there were only 7,500 sheep, all of which only produced the coarsest grade wool.

Advise Edna as to whether she would be successful in an action in misrepresentation against Flora, and what the remedy, if any, would be.

Would your answer be different if Edna had arranged an inspection of the  stock before signing the contract?

Question 4: Damien and Betty agreed verbally on the lease of Damien's property commencing on 1 June. Damien agreed to reduce the first six months' rent, as Betty was a painter and decorator, and would decorate the house free of charge. Betty's licensed conveyancer wrote to Damien sending a cheque for the deposit, describing the property, stating the rent and asking for a lease for signature. Damien's licensed conveyancer wrote back enclosing a receipt for the $500 deposit that Betty had paid. Betty was given access to the property on 20 April where she commenced decorating. Soon after, Damien receives an excellent offer to purchase the property, but the purchaser wants vacant possession. Damien now refuses to proceed with the lease to Betty. 

Explain whether Betty an enforceable lease. Support your answer by reference to relevant authorities