Cathy and Josh are building a house in Ballarat. They have entered into a fixed price contract with a local builder, Wellbuilt Homes Pty Ltd. The total price for the build is $205,000. Included in the contract is an allowance of $4,500 for vinyl plank flooring throughout the house. The builder instructs Cathy and Josh to make a selection of vinyl planks from Stylezone Flooring who have a shop at Sebastopol. Cathy and Josh look through the samples and choose the sample called ‘Blackbutt’ for the flooring. The sample board is a rich chocolate brown colour. Cathy and Josh explain to Ernie, the salesperson, that they really like the colour as it will match their furniture and soft furnishings. They even bring some cushions and curtain material along with them. They place these next to the sample board and are happy with the colour match. Cathy and Josh sign the order form. Ernie, confirms that the total price of the planks does not exceed the $4,500 allowance and so Cathy and Josh do not have to pay any extra for the flooring. Approximately six months later, the house is complete and Cathy and Josh are conducting an inspection. They are horrified to discover that the floorboards in the house have a reddish tinge. Cathy and Josh are very upset. They tell the building supervisor that they think that the wrong floorboards have been delivered and installed. The building supervisor checks the delivery note and also the packaging for the product and confirms that the boards are Blackbutt Vinyl Planks which is the product listed on the order form signed by Cathy and Josh. Cathy and Josh return to the Stylezone showroom to complain to Ernie and to look again at the sample board. Ernie shrugs his shoulders and says that sometimes there is some colour variation during the manufacturing process and it is too late to complain as the building supervisor accepted delivery of the boards on behalf of Cathy and Josh and the Wellbuilt Homes have paid for the boards. Required: Answer the following questions: a) Identify the parties to the contract for purchase of the vinyl planks. b) Are Cathy and Josh entitled to any remedy against the supplier of the vinyl planks, Stylezone Flooring? c) Would your answer to (b) be different if the order form that Cathy and Josh signed included some fine print that Cathy and Josh did not read, including a statement that the statutory terms implied by the Goods Act 1958 (Vic) are not to apply to this contract?
Cathy and Josh are building a house in Ballarat. They have entered into a fixed price contract
with a local builder, Wellbuilt Homes Pty Ltd. The total price for the build is $205,000. Included
in the contract is an allowance of $4,500 for vinyl plank flooring throughout the house.
The builder instructs Cathy and Josh to make a selection of vinyl planks from Stylezone
Flooring who have a shop at Sebastopol. Cathy and Josh look through the samples and
choose the sample called ‘Blackbutt’ for the flooring. The sample board is a rich chocolate
brown colour. Cathy and Josh explain to Ernie, the salesperson, that they really like the colour
as it will match their furniture and soft furnishings. They even bring some cushions and curtain
material along with them. They place these next to the sample board and are happy with the
colour match.
Cathy and Josh sign the order form. Ernie, confirms that the total price of the planks does not
exceed the $4,500 allowance and so Cathy and Josh do not have to pay any extra for the
flooring.
Approximately six months later, the house is complete and Cathy and Josh are conducting an
inspection. They are horrified to discover that the floorboards in the house have a reddish
tinge. Cathy and Josh are very upset. They tell the building supervisor that they think that the
wrong floorboards have been delivered and installed. The building supervisor checks the
delivery note and also the packaging for the product and confirms that the boards are Blackbutt
Vinyl Planks which is the product listed on the order form signed by Cathy and Josh.
Cathy and Josh return to the Stylezone showroom to complain to Ernie and to look again at
the sample board. Ernie shrugs his shoulders and says that sometimes there is some colour
variation during the manufacturing process and it is too late to complain as the building
supervisor accepted delivery of the boards on behalf of Cathy and Josh and the Wellbuilt
Homes have paid for the boards.
Required: Answer the following questions:
a) Identify the parties to the contract for purchase of the vinyl planks.
b) Are Cathy and Josh entitled to any remedy against the supplier of the vinyl planks,
Stylezone Flooring?
c) Would your answer to (b) be different if the order form that Cathy and Josh signed
included some fine print that Cathy and Josh did not read, including a statement that
the statutory terms implied by the Goods Act 1958 (Vic) are not to apply to this
contract?
Step by step
Solved in 3 steps
