Actions Samuel may claim against Timbo
| Project Details | |||||
| Paper Topic | : | Law of contract | |||
| Style | : | AGLC | Language Style | : | English (U.K.) |
| Type of Assignment | : | Essay | : | ||
| Acedemic Level | : | Undergraduate Level | : | ||
| Number of Sources | : | 1 | |||
| Order Instructions | |||||
Answer BOTH questions. Question 1 and Question 2 are not necessarily equally weighted.
Timbo owns and operates a successful graphic design business in Camperdown. For several
months, he has been exploring the idea of hiring an assistant graphic designer to help him
expand the business.
One day, Timbo’s nephew Samuel rang him from Adelaide to say he was thinking of moving
to Sydney, as there was too little to do in Adelaide on the weekends. Timbo was thrilled to
hear this news, as Samuel worked in the graphic design industry and had a great deal of
valuable experience. Timbo told Samuel about his ambition to grow his business, and
suggested it would be ideal if Samuel moved to Sydney as he could take up a role as Timbo’s
assistant graphic designer.
Samuel told Timbo that the idea sounded appealing, but immediately added that he was very
concerned about the high costs of moving, especially as he had an expensive collection of
antique furniture which would be costly to freight interstate. ‘Listen’, said Timbo, ‘My little
business is going from strength to strength. If you come here to work for me, I’ll take care of
all your moving costs and I’ll even help you find a great new place’.
After this, Timbo and Samuel discussed the question of salary. When Samuel asked Timbo
to send through a summary of what they had discussed, Timbo replied: ‘as you’re my nephew
I don’t think we need to involve lawyers – I’ll text you the main details’. Timbo thereafter
sent Samuel the following via text:
Hi Samuel,
Can you please say whether this accurately records what we discussed today?
1. If Samuel Thornton relocates from Adelaide to Sydney to be assistant graphic
designer for Timbo Thornton, Timbo will cover Samuel’s moving costs and will
help him to find a place to live in Sydney
2. Samuel’s initial salary will be $80,000
3. Other details of employment will be agreed after the move
Cheers Timbo
Samuel then sent a text in reply, which read: ‘Hey Timbo, your text looks right.’
It took three months for Samuel to find a buyer for his house in Adelaide, upon which he
immediately quit his job and commenced packing his possessions. A few days before Samuel
planned to depart, he received a call from Timbo, who had become very ill. Timbo explained
he was closing his graphic design business as his poor health made it impossible to work. He
also added he would obviously not be required to pay Samuel anything as he had not moved.
When Samuel, dismayed, explained that he had sold his house and left his job, Timbo offered
his sympathies, but explained that he needed all the money he could get in order to pay his
medical expenses.
Question 1: Advise Samuel as to what actions he may have against Timbo.
Alternatively, assume Timbo does not become ill and Samuel does move to Sydney.
When Samuel arrives, he sends Timbo an invoice for $15,000 in respect of his moving costs.
Timbo then calls Samuel and explains that he has had some financial trouble after a number
of key customers have been late in settling their accounts. He then explains that if he were to
pay $15,000 it would ‘bankrupt’ him, but he could afford to pay $5,000, and could then still
afford to employ him. Samuel is very upset, but believes that there is no real choice open to
him but to accept Timbo’s proposal.
Samuel starts work as Timbo’s assistant graphic designer, but within six months the
relationship between Samuel and Timbo has completely broken down. Timbo’s business has
bounced back and is again very profitable. Timbo nonetheless refuses to pay any further sum
to Samuel in respect of his moving costs, despite Samuel’s repeated requests for payment of a
further $10,000.
Question 2: Advise Samuel as to whether he can recover the $10,000 or any part
thereof.
Answer both questions. Disregard any possible statutory claim, such as a claim under the
Australian Consumer Law or the Fair Work Act 2009 (Cth)
Answer preview:
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