Advise dean whether he has a contract with simone

Assignment Help Business Law and Ethics

Reference no: EM133474524

Question: Dean is an electrician who runs his own business. On 27 June 2019, Dean met with Simone, a property developer, who was building a new luxury hotel in Geelong. Simone had heard that Dean was an excellent electrician from others in the industry and she wanted Dean to complete ALL the electrical work for the new hotel. Although the building of the hotel was not due to commence for 12 months, Simone wanted to make sure that she secured Dean's services for the future project. Simone told Dean that the building of the hotel would commence on 1 August 2020 and that it needed to be completed by 1 December 2021. Simone also informed Dean that she was willing to pay him $700,000 for the electrical work and, if he was happy with that fee, they could sign an agreement immediately, subject to a formal contract being drawn up and approved by their respective lawyers. Dean indicated that he was very happy with the fee and also the timeframe.

Simone therefore handed Dean a piece of paper headed, 'Agreement'. It included the date that the works were to commence and the date by which they were to be completed, and the fee to be paid for the works of $700,000. It also included a term that stated:

This agreement is subject to a formal contract being drawn up, and further terms will be included in the formal contract as agreed between the parties and their lawyers.

Both Dean and Simone signed and dated the agreement. They then shook hands and Simone told Dean that he would receive a formal contract from her lawyers at some stage in the future.

However, a month later, Dean had not yet received a written contract from Simone's lawyers.

Advise Dean whether he has a contract with Simone for the development of the new hotel. USE IRAC

Reference no: EM133474524

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