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Scenario Justin, a developer, has completed the construction of a block of residential units in Parramatta. He places the following advertisement in the national newspapers and on the internet: Luxury two bedroom units for sale. Units at the back of the block which face the tropical gardens and an eight lane swimming pool are priced at $800000 while units at the front which face the highway are priced at $500000. (The advertisement shows photos of luxurious tropical palms (taken in Bali) and a 50 metre Olympic size swimming pool (taken at North Sydney pool) Georgina, a popular Australian Olympic swimming champion, sees the advertisement and visits the site. She inspects three units on the ground floor at the back of the block but notices that neither the pool has been constructed nor the tropical gardens installed. She tells Justin she is interested in one of the three ground floor units because these units look out directly on to the pool and tropical trees. All three units are the same size and price of $800,000 but Georgina cant make up her mind which of the three she prefers. In addition, Georgina tells Justin she is attracted to the Olympic size pool because she will be able to train without driving to a public pool. Justin informs her that the pool and tropical gardens will be finished by the time she moves into the unit. Georgina signs a document prepared by Justin that states Georgina agrees to buy and Justin to sell one of the three ground floor units subject to a proper contract being prepared on these same terms by Justins solicitor. The signed document specifies the location of the three ground floor units, the purchase price and date on which the sale is to be completed. . Justin tells Georgina he will arrange for his solicitor to send her the formal contract to sign but she has no fears the contract is now binding and he cant sell the unit to anyone else. Five days later Georgina receives the contract from Justins solicitor. Before signing she visits the site again and notices that a landscaper is installing low lying Australian shrubs and a 25 meter two lane pool. When she complains to Justin he informs her that she must go ahead with the contract and must sign it and return to his solicitor.
Question 1 Discuss, in a problem-solving format, by reference to the common law of contract whether there is a contract between Justin and Georgina for the sale of the unit.
Discuss, in essay style, what section or sections of the Australian Consumer Law (ACL) may have been breached by Justin? Explain some of the legal, ethical and business implications for Justin should he be found to have breached these sections of the ACL.
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