Contract Law

Contract Law

Issue 1:

Desmond Aster, the proprietor of Sleet and Trumpet Real Estate wants to use Sydney Harbour Hotel’s conference centre for a series of seminars he is running for his staff.

Valerie Ewer, an employee of Sleet and Trumpet contacts Sydney Harbour Hotel and makes a phone booking for a conference room at $500 for the 1st October 2002.

The hotel manager makes the booking and adds he will be sending a booking slip to the estate agency which must be signed and returned with $200 as a holding deposit.

The slip is never signed but a delayed payment of $200 is eventually made (before 1st October 2002).

At 5.00 am on the 1st October 2002, an electrical fault causes a fire. The conference room is damaged and cannot be used. Desmond arrives at 10.00 am and is informed of the fire, he threatens to sue and Sydney Harbour Hotel requests that Desmond pay the remaining $300 they say is due under contract.

An offer was made by Sydney Harbour Hotel for a conferen...