This assignment assesses the following course objectives:

CO1. Demonstrate a detailed knowledge of an aspect of the law of contract, demonstrated through the ability to identify and explain the key principles within the area.

CO3. Develop clarity of thought, critical analytical reasoning, and problem-solving and communication skills in written context.

The following scenario

Peta had been in the tourism business for five years, specialising in booking coastline holidays and accommodation for local, interstate and overseas clients. Having decided that she should become ‘Peta'shotspots.com' on the Internet, Peta realised that she would need assistance in constructing an imaginative web site.

Peta arranged with Bill who owned a technology business called Wonderful Web to set up her web site, and explained to Bill at their first meeting that she was convinced that the success of her business would depend on the rapid availability of a profusion of stunning images of the most popular regions. ‘Will your system give really rapid access to my visual images?' she had asked, and Bill had said: ‘Of course. Not only that, but video images as well'.

Happy with Bill's response, Peta signed an order form of Bill's, that described the details of Bill's services, and the software he was to provide. The order form had several clauses, one of which, Clause 7, said: ‘Nothing in this agreement shall render Wonderful Web liable for any errors of programming'. No mention is made of performance characteristics of Wonderful Web's system. Peta treats these as two separate matters.

On the day ‘Peta'shotspots.com' commenced, Peta discovered that the images on her new web page only became available very slowly: a turn-off for potential clients. When Bill presented his account for $5,000, Peta did not want to pay and complained that the system did not present her images as rapidly as promised. Bill replied: ‘That wasn't in the contract. Besides, read Clause 7'.

Using the relevant principles of contract law and cases, discuss how Peta could respond to Bill's two arguments AND give your conclusion on the likely outcome of this case.