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Do what you want. but the price is the price. After a few moments' thought Carl decided the price was worth it to allow him to be the first Sydney...

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Dom: Do what you want. but the price is the price. After a few moments' thought Carl decided the price was worth it to allow him to be the first Sydney operator of
Dom’s new technology. Dom presented Carl with a written contract to purchase one “Dominator” drone from
Dom's Drones at the nominated price. Because Carl did not have the funds to finance the sale immediately. Dom
included the following clause into the contract: Clause 127: This Contract of Sale is subject to the Buyer obtaining suitable finance. A few weeks later. Dom called Carl to enquire as to whether he had managed to obtain finance yet. Carl replied
that he had not started looking yet. and needed a few more weeks. In fact. all has not been well for Carl. A
number of things have happened. Advise Carl on contract law issues iny arising from the following. - (5 marks): Patronage at Carl’s Car Wash has declined sharply. Despite advertising to promote his new, eco-friendly setup, Carl’s customers do not seem to like the smell of the Mother Earth detergents and
have turned to other establishments, despite Lisa’s claims that sales would skyrocket. - (5 marks): Carl has cantacted Lisa to try and get out of the supply contract early, “just like she premised".
but Lisa has refused. saying only that “you agreed to the terms - that's just too bad.“ 0 (5 marks): Carl has discovered that the lease of the “INST-A-CLEAN 2000" high pressure washer does not
have an end date and has given Lisa notice of his intention to terminate this lease as well. Lisa has not
responded to this, and has continued to invoice Carl for the lease of the equipment. e (5 marks): Realising his business is in dire straits. Carl has not bothered searching for suitable finance for
his purchase of a “Dominator” drone from Dom. He in fact has no intention of doing so and no intention
of proceeding with the sale. and has ignored Dom’s repeated calls and enquiries. In addition to the 20 marks for the questions above, 5 marks will be allocated for structure, evidence of research,
expression, spelling/grammar and correct referencing for a mark out of a total of 25 marks.


Assignment problem question: Carl's Car Wash, a wen-established small business in Coogee, has been providing hand car wash services to
residents of the area for many years. Carl, the proprietor, can frequently be seen strutting around his beachside
lot in his boardshorts with a bucket and sponge in hand. cleaning and polishing everything from exotic supercars
to famiiy SUVs while showing off his tan. In recent times, however, Carl's business has been gradually declining. Many of his wealthy Eastern Suburbs
customers have become c0nscious of the threat which global climate change poses to their idyllic beachfront
lifestyle and started taking their Hummers and Maseratis to more high-tech, ecu—friendly businesses using
biodegradable detergents, recycled rainwater washes and solar-powered car vacuums instead. Carl knew he had
to revitalise his business to compete with these new trends. One morning, while Carl was on the beach doing his morning yoga, he ran into Lisa who was out for a run. They
had met many years ago while studying CLAW1001 and had become close friends, though they had not been in
contact for several years. They decided to go and get breakfast at a local cafe, where, over green smoothies and
avocado toast, they talked about each other's businesses. It turned out Lisa had left her job as a business law
consultant to become an ‘eco-entrepreneur', and had designed and marketed her own popular line of cleaning products under the brand name Mother Earth. Hearing about Carl's business troubles, Lisa wasted no time in telling him about her newly launched, 100% biodegradable Mother Earth car detergent, wax and polish range. “Everyone in the car wash industry is talking about it”, she said. “All my clients that have switched to using it have seen their sales go through the roofi Yours
will too, I’m certain of it!” This was good news for Carl, as the contract with his current supplier was about to expire and he was looking for
a new supplier of car wash products. Lisa suggested to Carl an arrangement under which she would supply him with 36 ten—litre cartons of Mother Earth car cleaning products each month at her list price for a period of three years. Carl was delighted with this proposal. which he accepted. As they were leaving the restaurant, however,
Carl began to have doubts about their agreement. Carl: Three years is a long time to be stuck using the same products... Lisa: All of my customers are signed on for 5 years - those are the standard terms for all my contracts. But
look. just between friends. if it doesn’t work out I'll let you out of the contract early - we'll sort it out if the
time comes. Placated, Carl went back to work. The first shipment of Mother Earth arrived soon after and Carl was
immediately impressed with how it seemed to cut through dirt and grime with ease. He soon realised that he
wouid need to upgrade to something a bit better than a bucket and sponge to get the most out of his new
investment. Visiting Lisa's warehouse later that week, Carl entered into a written contract to lease a set of new
“lNST-A-CLEAN 2000" electronic high-pressure washer hoses with built in brush and detergent dispenser. The
contract contained a long list of standard lease terms and conditions, with blank spaces for the start and end
date of the lease to be entered. Lisa, conscious of Carl’s earlier concerns, left the end date on the lease blank.
Carl did not look at the agreement but simply signed the form. Just as Carl was about to leave, Lisa mentioned that she knew of a startup, Dom's Drones, who had developed a
unique new solar-powered drone - the “Dominator” which could fly directly to where a customer’s car was
parked, spray it with water and detergent and wipe it clean, then fly back — all at the Swipe of an app. “There are
a few car washes in Melbourne using it but none in Sydney — you cauld be the first!" she suggested. Carl thought this was a real opportunity to grow his business. He sent off an online enquiry and soon Dom, the
proprietor, flew up from Melbourne to give Carl a demonstration of the technology. Carl was extremely
impressed, but balked when Dom told him the price. Cari: That's awfully expensive for a drone. Dom: Just a drone? Did you not see how much money we raised on Kickstarter for this? The number of
patents we have on our advanced machine learning technology? Uber and Amazon are both bidding to buy
us out. l'll have you know this is no ordinary drone. Carl: I'd love to buy one, I really would, but I'd have to borrow money to do so.

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