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Posts by Audi_TT
Joined: Aug 31, 2009
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Audi_TT   
Aug 31, 2009
Research Papers / "Holy farm" and" Brighton Greens" - Business Contract Law Assignment [3]

i have a little confusion about this case, between the" Holy farm" and" Brighton Greens" in my opinion, i think there are have two contract through this case.Does anyone can give me a suggestion about this case? thanks a lot!

Case:

Molly and Kelly sisters own and operate "Holy Farm" producing fruit and vegetables for sale. They also advertise on the internet, with a particular emphasis on the 2009 harvest of their prize winning extraordinary Granny Smith apples.

Richard Brat owns and operates "Brighton Greens" upmarket grocery store, who sells high quality fruit and vegetables to discerning customers in Brighton. Richard saw the internet advertisement of Holy Farm's apples and took a trip with his partner to the farm. Richard sampled the apples and was very impressed by the taste and quality. Just to be sure, he also visited surrounding farms and tasted their apples to compare. He then decided that the best Granny Smiths were at Holy farm.

Following the visits to some other apple farms, Richard and his partner returned to Holy farm to put an order in for some Granny Smiths. On 1 August, Richard sent an email to Kelly stating:

'Please deliver 20 boxes of your Granny Smith apples to my "Brighton Greens" grocery store. My cheque will be mailed in today's mail'.

Kelly received the email later on the same day. Kelly had received many orders for the Granny Smith apples and now faced a problem. They did not have sufficient quantities of the Granny Smith apples. Last year's drought had badly affected the yield. Molly and Kelly had decided to purchase some Granny Smiths from other producers to meet their customers' demands, although the quality was inferior to the Granny Smiths grown on their farm.

They provided their own delicious apples to customers for sampling but, sent the inferior apples purchased from other farmers, when orders were made. While the stickers on the apples had the details of "Holy Farm" on them, the quality was not the same. Kelly was uncomfortable about selling these lower quality apples but they decided to sell them as they had a huge demand from customers.

Kelly telephoned Brighton Greens grocery store at 8.45 am on 4 August. The business telephone was diverted to Richard and his partner Anne's home, out of business hours. Anne answered the phone. Kelly informed Anne that the 20 boxes of Granny Smiths would be sent to Brighton Greens grocery store and that she would make contact again to inform them of the delivery date. Anne, a tour guide, left for five days to Europe. She did not leave any note for Richard regarding the phone call from Kelly. At 4.00pm on 4 August, Kelly received Richard's cheque and quickly sent an email to Richard stating:

"I have received your cheque, thank you for your order. Your 20 boxes of Granny Smith apples are scheduled to arrive to "Brighton Greens" on 7 August. "

In the meantime, at 2.00pm on 4 August Richard left for a two day buying tour to Mildura to sample other apple varieties. Whilst in Mildura, he discovered a more delicious new variety of apple. Since he had not heard from Molly or Kelly, he sent a text message to Kelly on his mobile phone at 9.00 am on 5 August stating: "I request you to cancel my order dated 1 August."

Richard arrived at work to "Brighton Greens" on 7 August and discovered the delivery of the 20 boxes of Holy Farm, Granny Smith apples. When he telephoned Kelly, Kelly stated: "Text message? I have no idea how to read or send text messages, mate. So that is why it was beeping!" Kelly in fact never received Richard's text message.

(a)Is there a contract between Richard trading as "Brighton Greens" and Kelly trading as "Holy Farm"?
Contract ? or not contract?


(b) Assume there is a contract between Richard trading as "Brighton Greens" and Kelly trading as "Holy Farm". Assume that Richard's customers are disgusted by the taste of the "Holy Farm's" Granny Smith apples. The customers either refuse to purchase it or return them demanding a refund. Advise Richard of his statutory rights against Kelly trading as the Holy Farm under the Trade Practices Act 1974 (Cth).
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