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Unformatted text preview: nal rate” of $1,200 per day for
this period. As for the Christmas Day booking, they are willing to supply Loveboat 3
under a new contract at $300/day.
19 November 2002. Paul receives Loveboat’s fax telling him that only Loveboat 12 is
available for 1 – 5 December. Unsurprisingly, he calls them up, angrily insisting that they
let him have Loveboat 3; alternatively, they can rent him Loveboat 12 at $300/day, as he
refuses to pay any more than the original contract price for any replacement boat.
Larry receives the call. He does not give into Paul’s demands and tells Paul to check his
post-box for Loveboat’s letter dated 5 November. Paul finally opens his post-box and
finally finds it. He logs on to Loveboat’s website as indicated therein, and is re-directed to
Loveboat’s standard terms and conditions. In particular, it is stated that:
Standard Terms: Clause 11. If it so wishes, Loveboat may exercise its discretion to
allocate a replacement boat should the vessel originally allocated to the hiror not be
available at the time the period of hire commences for any reason whatsoever. Furious, extremely upset and distressed at the shabby treatment he’s received from
Loveboat, Paul decides that he does not want to have anything else to do with them. He
decides to look for a replacement boat elsewhere and calls Loveboat to say that he is going
to hire boats from another company. 3 LGST101 20 November 2002. Since the school holiday period has started, boat-hire rates have
increased dramatically. In the end, after looking around for the best price for a
replacement boat, Paul hires a boat similar to Loveboat 1 from a rival outfit for the same
periods (1 – 5 December, as well as Christmas Day). However, this costs Paul $500 per
day, instead of the original $300 per day.
Advise Paul as to:
a) his remedies against Loveboat for their failure to supply Loveboat 1 to him for the
specified periods (55%);
b) whether Loveboat is likely to succeed in suing him for refusing...
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- Spring '14