Highlights
Task:
FACTUAL SCENARIO
Jemma Richards’ husband recently passed away. She decides it’s time to brighten up the house she shared with him for many years. Jemma sees an ad outside the Red Hill supermarket for “Alex’s Painting and Handyman Service”. She subsequently hires Alex (the sole director and shareholder of the company) to give her whole house a fresh coat of paint inside. She is very happy with the result.
In light of his great work on the painting, Jemma thinks Alex might be able to help achieve some other aesthetic changes to her house. She tells Alex she’s never really liked the exterior brickwork on the house and would like to have it rendered with concrete and given a “burnish” finish to give the house a “Tuscan” feel. She asks: “Could you help with that?”
Alex has never done that sort of work but thinks it would probably be easy. He tells Jemma he could do the whole house for $10,000. She agrees.
Jemma also points out to Alex the poor state of her terrace. Jemma asks Alex what she could do with it. Alex tells Jemma “I’m not an expert in gardening or landscaping but I have seen beautiful large pot plants in a Tuscan style and planting them full of flowers would look great!”. Jemma likes the idea and asks how much that would cost. Alex says: “Well, I’m not sure but depending on the type of pots, around $1,000 or so. It’s a lot but they look great and cheaper than renovating your terrace.” Jemma tells Alex to go ahead and organise them.
QUESTIONS
Answer ALL of the following questions based on the factual scenario above:
(1) What action(s), if any, does Jemma have against Alex’s business for the problems with the concrete rendering and the pots?
(worth 30% of marks for assessment item 1)
(2) Simone has not received payment from Alex for the pots. Simone decides to go over to Alex’s office to confront him. He tells her that he is waiting to be paid by Jemma and there might be some problems getting the money because the pots were completely wrong for planting flowers.
What action(s), if any, does Simone have against Alex’s business for non-payment of the pots? What action(s), if any, would Alex’s business have against Simone in respect of the pots?
(worth 30% of marks for assessment item 1)
(3) Simone makes some further enquiries. She discovers that Alex’s business is in financial trouble and a liquidator has been appointed. She recalls seeing the 4 leftover pots in the corner of Alex’s office.
Does Simone have a right to retrieve the 4 leftover pots in Alex’s office? Is the liquidator of Alex’s business entitled to include the pots in the winding up assets?
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