Assignment Task
Case Study Facts
1. Ravy Trent (Ravy) is a young man of age 20 living on a rural property he inherited at No 77 Glenrock, Mildura in Victoria. He dreams of collecting classic trucks.
2. On 4 January 2017, Ravy sees an advertisement in the “Classic Trucks” magazine for the sale of a “vintage, restored BT25 Truck” (BT25) first produced in the 1960’s.
3. The advertisement is placed by OzeBrokers, a business based in Newcastle, New South Wales. The asking price is $150,000 not including the costs of shipment.
4. Ravy contacts OzeBrokers to inspect the BT25 and travels to Newcastle on 10 January 2017. He checks into a hotel and goes to OzeBrokers’ office the next day.
5. OzeBrokers manager Sinead Payne (Sinead) receives Ravy and gives him her business card, shown opposite. She explains that she is the manager of OzeBrokers. From her office Sinead brings Ravy to the place where the BT25 is kept in the outer suburbs of Newcastle.
6. Ravy tries out the BT25 and to his delight, finds that it is working. A picture of the BT25 is shown below.
7. Sinead mentions that OzeBrokers is “ agent for the truck owner s ” but it does not really register with Ravy as he is too excited with the prospect of owning a BT25 as his first collector’s item. They start negotiating over the price of the BT25. At one stage Sinead excuses herself to “ speak with the owners ”.
8. The following key terms are finally agreed on:
- An “all-in” purchase price of $120,000 in Australian dollars including freight.
- The BT25 to be delivered to Ravy’s property in Mildura, Victoria.
- Delivery date: Between 11 and 12 February 2017.
- 20?posit of $24,000 to be paid to OzeBrokers 2 weeks prior to shipment.
9. Balance of $96,000 to be paid into Australian Credit Union Pty Ltd (ACU), ACN: 42316789 to be held in escrow and released to OzeBrokers on confirmation by Ravy to ACU of receipt of the BT25.
10. Sinead requests Ravy to wait while she gets the contract ready. While Sinead is preparing the paperwork, Ravy is thinking of ways to ask her for a date without appearing brazen. Sinead eventually presents Ravy with the contract to sign.
11. She informs Ravy to read the terms and conditions first. However, preoccupied with asking Sinead out, Ravy signs the contract without reading it properly.
12. He fails to notice that the contract refers to OzeBrokers as agents for the vendors of the BT25.
13. The vendors of the BT25 are named and described in the contract as:
- Temasek Commodities
- 39 High Way
- Republic of Temasek
- Postcode 6 090
14. Sinead tells Ravy that she will get an “authorised person” to sign the contract in the next few days and post it to him. When asked by Ravy why she cannot sign it herself, Sinead remarks, “I only work here” .
15. Sinead tells Ravy that he may remit the deposit by electronic funds transfer into OzeBrokers’ account with ACU and pay the balance of the purchase price of $96,000 into ACU in escrow on receiving the contract as ACU has a branch in Melbourne.
16. Ravy agrees and Sinead gives him OzeBrokers’ account details.
17. Before leaving, Ravy asks Sinead out. She accepts his invitation and they have dinner that night at Ravy’s hotel.
18. Over dinner Ravy discovers that Sinead has family in Melbourne and is planning a visit to Melbourne on 20 January 2017.
19. Seizing the opportunity, Ravy asks Sinead to meet him when she comes to Melbourne. He suggests that rather than post the contract to him, Sinead can bring it with her and give it to him personally in exchange for the deposit of $24,000.
20. Sinead agrees. Ravy then escorts Sinead back to her home at 1 Kendall Street, Newcastle, NSW, after which Ravy returns to his hotel and leaves for Mildura the next day.
21. On 21 January 2017 Sinead meets Ravy in Melbourne for lunch. She hands him the contract signed by a person described as:
- Jeremy Flint
- Managing Partner
- Temasek Commodities
22. The signature is notarised by a Notary Public of the Republic of Temasek and dated 18 January 2017.
23. In exchange, Ravy gives Sinead his cheque for $24,000 payable to OzeBrokers, drawn on his personal account at Victory Bank.
24. After lunch they go to the Melbourne branch of ACU where Sinead deposits the cheque for $24,000 into OzeBrokers’ account and Ravy opens an escrow account for the balance of the purchase price of $96,000.
25. He pays in $96,000 (the escrow money) to be held by ACU in escrow plus ACU’s fees for the service. Ravy gives ACU explicit instructions that the escrow money of $96,000 may only be released to OzeBrokers on presentation of the appropriate documents by OzeBrokers and his confirmation that he has taken delivery of the BT25.
26. He gives to Sinead the documentation that must be produced to ACU for the release of the escrow money. Sinead tells Ravy that the freight company, FastTrack Pty Ltd (FastTrack) will contact him a few days before the delivery date to confirm the actual date of delivery.
27. FastTrack is based in New South Wales. Its business address is 100 East Point Industrial Way, Parramatta, NSW and its ACN is 567891234.
28. There is no contact from FastTrack nor is the BT25 delivered to Ravy. On 12 February 2017 and during the next week, Ravy tries to contact Sinead numerous times but is unsuccessful.
29. After a week of trying to get through to Sinead in vain, Ravy finally asks his girlfriend Jenna for help.
30. Jenna does some research on the internet and finds the following information about OzeBrokers:
- Name of business : OzeBrokers
- Australian Business Number (ABN) : 987654321
- Owner/Sole trader : Gwendoline Payne
- Residential Address : 5 Jarvis Road, Newcastle, NSW
- Principal place(s) of business : 34 Tarra Way, Newcastle, NSW
- Nature of business : Dealers and brokers
31. Jenna also finds that Temasek Commodities is a business registered in the Republic of Temasek dealing in rice and flour. Its Temasek Business Registration Number (TBRN) is 90804567.
32. It is owned and operated by 2 partners, Jeremy Flint and Hock Lou, both Temasek citizens and apparently based in Temasek. However, she is unable to find their residential addresses.
33. Interestingly, Jenna’s research also shows that businesses and partnerships in Temasek are just like businesses and partnerships in Australia. It also appears that there are no corporations in Temasek.
34. Meantime, Ravy contacts his bank, Victory Bank and learns that his cheque for the deposit has been presented and paid out.
35. Ravy travels to Newcastle and finds OzeBrokers’ office vacant. There is a notice of demand from a debt collection agency posted on the door. He then visits both Sinead’s and Gwendoline Payne’s houses but finds both houses vacant as well.
36. Ravy locates FastTrack and meets its General Manager, who confirms that she has received a job request from OzeBrokers to deliver a BT25 to Ravy’s farm. However, due to a strike by FastTrack’s truck drivers, it is unable to accept the job and make the delivery.
37. Ravy returns to Melbourne and decides to abort the purchase. He tries to withdraw the escrow money from his account with ACU.
38. To his utter dismay, he discovers that the escrow money has somehow been released to OzeBrokers even though he has not confirmed that he has taken delivery of the BT25.
39. The manager on duty is unable to provide an explanation for the unauthorized release but confirms that the release documentation given by Ravy to Sinead has been presented.
40. Ravy is no longer interested in the BT25 and wants to recover his money.
The Republic of Temasek is not a signatory to the United Nations Convention on Contracts for the International Sale of Goods (CISG) so the CISG does not apply.
41. Further, the sale and purchase of the BT25 is a private contract that is not covered by the Australian Consumer Law.
1. Discuss
- what cause(s) of action may have arisen;
- the elements of such cause(s) of action; and
- to whom such cause(s) of action may have accrued.
Limit your discussion to cause(s) of action at common law.
2. Suppose Ravy is a person identified in Question 1. Discuss:
- what claim(s) Ravy may make; and
- whether there is any legal impediment to Ravy making such claim(s).
3. Discuss
- against whom the claim(s) identified in Question 2 may be made; and
- the ground(s) for claiming against such person(s).
4. Suppose Ravy has more than 1 claim against a person identified in Question 3, and discuss:
- how the claims may be pursued expeditiously, and,
- the difference between arbitration and meditation – and what is the best option.