What are your obligations and liabilities under Clause 5.1?

i need to know the legislation or case law for the bottom scenarios:


  1. You have decided to sell FRIENDS ESSENTIAL BEAUTY T-Shirts as a promotion for the salon. Ursula is given the job of setting up the display in Phoebe’s salon. Ursula puts up a sign with the price of the T-Shirts at $5.00. The price for the T-shirts should have been $35.00. Sally decides since the T-shirts are such a good buy she would buy 5. She approaches Ursula with her money.

Is Ursula obliged to sell the t-shirts at $5.00 to Sally.


1.3 Essential Beauty have agreed to sell six massage beds and upgrade to new massage beds. The GOT Beauty Parlour in the next suburb is just setting themselves up and you know that Emily the owner is looking for massage beds. Monica sends her an email at 5pm on Wednesday night asking her if she is interested in your six beds for a total of $3,000. Emily responds at 5.30pm saying “Will only pay $2,500. What say you?”

At 9.00am the next morning Monica sends Emily an email saying “Okay, good, we can agree on a price of $2,500.” At about the same time Emily sent an email to Monica saying “Cancel my earlier counter-offer. I will take the beds for $3,000 as I need them as soon as possible and I cannot bother with haggling over the price.”

According to the electronic records

  •  Emily’s email “in” box received your email accepting the price at $2,500 at 9.40am and she looked at it at 9.45am.
  •  You received Emily’s email stating that she was willing to pay $3,000 at 9.30am but you did not look at it until 10.00am.
  • According to the electronic records have the massage beds been sold?


1.4 You have had enough of Ursula’s mistakes. You terminate her employment. As she is leaving she fires off the following words to you, “I am going to join GOT Beauty Parlour and wherever I go I am going to help make it so much better than your silly Friends business.”

You point out to Ursula that when she was hired you put into her contract an express clause that says: “I, Ursula, agree, upon my leaving the employment of Friends Essential Beauty, not to work at any other beauty salon within five kilometres radius of any Friends Essential Beauty, for a period of 24 months.”

She has signed the contract at the end and remembers reading that clause.

Is Ursula bound by the ‘restraint’ clause in the letter? If so, why? If not, why not?

Question 2 – Leasing and Property


2.1 The gift shop next door has closed down and the landlord of that premises has approached you to see if you are interested in expanding to this space. You are very keen. You have been supplied with a standard leasing contract.

What else does the landlord need to provide to you, and identify 5 pieces of information that must be included, in relation to the rental property?


2.2 The standard lease provided to you by the landlord for the new premises contains the following clause:

Clause 5.1 Lessee’s Consent

Where, pursuant to any Act or requirement of any relevant authority, the Lessee’s consent is required to any process, step or dealing by the Lessor with its interest in the Land, the Lessee shall give its written consent to such proposed process, step or dealing within seven (7) days of receipt of a written request from the Lessor to do so, provided that such proposed process, step or dealing does not materially detrimentally affect the Lessee’s use of or access to the Premises;

The landlord wants to install an inside wide arch between the two spaces so he can continue to offer you (and subsequent lessees) ‘double’ space. However, the modifications will mean that you cannot trade (other than waxing) for at least two weeks due to the noise. You are unhappy. You point out that you are quite happy with the amount of access you have to the second salon via the connecting door. You don’t want to give the landlord permission to do so.

What are your obligations and liabilities under Clause 5.1?

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