Peter owns and runs a shoe shop, Ethical Footwear, in Sydney. He sells custom-­-made, artisan shoes. He prides himself in producing footwear in a much more sustainable, less toxic and more compassionate way than using animal hides. Peter's clients are vegans looking for high quality alternatives to animal leather. Peter has sourced the material for his vegan line of footwear from No Animal Harmed (NAH) since 2010. Sadly, the owner of NAH passed away recently and Peter had to find another supplier. Peter identified Animal-­-friendly Cobbler Supplies (ACS) as a potential new supplier of vegan leather. He rings the business to discuss the nature of the materials they sell and speaks to Martha:

Peter: ‘Many of my vegan clients are environmentally conscious. They are looking to buy shoes that are manufactured from an eco-­-friendly, natural alternative to animal hide. Is the vegan leather you supply all-­- natural?'

Martha: ‘Yes, of course!'

Peter informs Martha of his intention to order 5m2 black vegan leather. Later that afternoon, Martha emails Peter an online order form with the type and amount of leather already entered. Peter adds his details to complete the online order form and e-­-mails it back to Animal-­-friendly Cobbler Supplies. The order form did not include specific instructions/details about the vegan leather.

Peter uses the vegan leather to craft a pair of bespoke black boat shoes for Samantha. Samantha calls Peter a couple of days later, threatening to sue him. Within minutes of putting on the shoes, the skin on her feet broke out in painful red patches and blisters. Samantha is allergic to synthetic colouring. It turns out that the synthetic tint ACS uses to colour the vegan leather they supply, caused the reaction.

Although Samantha made it clear that she wanted vegan leather, she did not specify that the production process should not involve any synthetic materials. She now wants to sue Peter for breach of contract.

1. Was it a term of the contract between Peter and Animal-­-friendly Cobbler Supplies that the vegan leather would be all-­-natural?

2. Was there an implied term in Samantha's contract with Peter, that the shoes will be made with all-­-natural vegan leather with no synthetic material/ingredients involved?

After the complaint about Samantha's shoes, Peter makes a sign to display in his shop. He puts the sign up on the wall next to the counter where customers are served.

Geoffrey comes to Peter's shop to place an order for a pair of men's sneakers. They discuss all the details: Geoffrey orders a pair of white men's sneakers in a size 13, with white rubber soles. While finalising the order Geoffrey sees the sign, which says: We accept no responsibility for breach of any warranty.

Geoffrey returns a week later to pay for and collect the sneakers. After leaving with the pair, Geoffrey discovers that the sneakers have caramel coloured rubber soles. Geoffrey had the pair made to wear when he participates in bowling league competitions, as participants must wear all-­-white shoes on the lawns.

Geoffrey wants to complain to Peter but isn't sure whether the sign prevents him from doing so.

3. Was the colour of the sneakers' soles a condition or a warranty of the contract?

4. Is Peter still responsible for the sneaker soles being the wrong colour?