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PROPERTY LAW AUSTALIA

Willow owns and operates a shop selling books and gifts, 'All the World's a Page' in

Paddington, Sydney. Willow supplies books both as a wholesaler and retailer. On Monday, Dawn attended at the shop and chose and purchased 7 books. Dawn was also interested in purchasing a small display case but the only one available was in pieces in a box and required construction. Willow agreed that if Dawn wished to purchase and pay for the display case immediately, she would construct the display case and Dawn could collect it on Tuesday. Dawn agreed and decided she would also collect the books the next day.

On Monday, Willow also received an order for 22 copies of the book 'Masterchef the Musical', from Buffy, the owner of a book shop in Parramatta. The 22 books were dispatched in Willow's delivery truck with a further 70 'Masterchef the Musical' books to fill two other orders in Parramatta.

Unfortunately, on Monday night, an electrical fault in the shop next door caused a fire which spread to , 'All the World's a Page' and the shop and its contents were destroyed. Dawn arrived to collect the 7 books and the display case on Tuesday morning, but finding them destroyed, demanded the return of her money. Willow refused.

In a further blow, the delivery truck was involved in an accident causing great damage to the books. When Buffy finally received the books, she refused to accept them because of their seriously damaged condition, and refused to pay for the order, insisting that it was not her loss to bear.

Willow is your client and seeks your advice as to who must bear the loss of the various goods.

Give reasons for your conclusions.

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