Reference no: EM132365083

MOOT PROBLEM

Peter wants to sell one of his triathlon bikes to his nephew Brett. Peter owns two triathlon bikes. One has a carbon frame and one has a metal frame. Brett is eager to purchase one of his uncle's bikes.

Peter says to his nephew "I would give you my old bike but I know you won't accept charity so I will offer my bike to you for $500. I could sell it elsewhere for about $2000. If you want to buy it come over on Friday with the cash."

Brett assumes that the bike on offer is the carbon framed bike. Brett agrees to buy the bike for $500.

On Friday morning Brett calls his uncle and says "I'm really sorry but I only have $450 cash available today. Will that be enough?" Peter says "Yes, that's fine."

However, during the day Peter becomes annoyed that his nephew is not going to pay the full amount. Peter thinks his nephew is taking advantage of his generous offer.

When Brett arrives at Peter's house on Friday afternoon, Peter says to Brett "You know you are pushing your luck by asking to pay less". Brett sees that the bike Peter is intending to sell is actually the metal framed bike. Brett says "Well I don't think it's such a great deal. I thought you were selling me the carbon bike". Some heated words are exchanged between Peter and Brett. Brett now says "Well I don't really want to buy your bike anymore". Peter says "Too late. You have already agreed to buy it and you're going to pay the full amount of $500".

Brett does not pay and he leaves his uncle's house without the bike. Peter delivers the bike to Brett's house the same day.

Brett starts riding the bike to and from university. Brett has not paid his uncle for the bike.

A month later Peter sees Brett riding the bike. Peter approaches Brett and again demands payment from Brett. Brett says "No I will just return the bike to you".
Peter is now very upset about the situation and he decides to lodge a claim at QCAT demanding payment.

Peter brings proceedings in QCAT against Brett seeking payment of $500 for a minor debt.

Applicant (PETER MORE) v Respondent(BRETT THOMAS)

Required: choose who I will represent

If you are representing Peter, obtain and complete (500 words) the QCAT ‘Application Form'.

If you are representing Brett, obtain and complete (500 words) the QCAT ‘Response and Counterclaim Form'. Find the form attached.

Analyse the case in base the example below:

ISSUE (does a contract exist)

The issue is whether the promise to accept $100 less rent per week is enforceable.

LAW( Rule in Pinnel's case - element of the contract - contractual intention - consideration - contractual mistakes)

Promissory estoppel allows a mere promise to be enforced. Usually an agreement is only enforceable in the courts if all the elements of a contract are present. However, estoppel permits a promise to be enforced if the following elements are present:
1 - a clear promise
2 - reliance on the promise by the promisee to the detriment of the promisee.
3 - knowledge by the promisor of the reliance and detriment by the promisee.
4 - withdrawal of the promise in circumstances where it is unfair to withdraw the promise.

APPLICATION( apply the law to the facts)

There is a binding tenancy agreement. The promise to reduce the rent by $100 per week does not at contract law interfere with that agreement because there is no consideration in exchange for the promise.

However, the elements of promissory estoppel are present. First the agent (acting for the lessor) has made a clear promise to reduce the rent. Second, Johnny has acted in reliance on the promise and is possibly missing on an opportunity to train at the AIS. Third, the reliance is known by the agent and finally the promise is withdrawn unfairly with no explanation.

CONCLUSION

All the elements of estoppel are present and the promise to accept less rent ($100 less per week) can be enforced.

PART A APPLICANT'S AND RESPONDENT'S DETAILS
• You should complete this part using the applicant's and respondent's details from the original application. If you wish to change your address details, complete Part B.
• Any change in your address for notices must be filed in the tribunal and given to all other parties.
If you want your representative's address as the address for notices, please complete your representative's details.
If you want your representative to represent you in any proceedings before the tribunal you must complete the form Application for leave to be represented. Generally the tribunal expects people to represent themselves. It may not grant your request.
You are not required to seek leave if:
• you are a child or a person with impaired capacity
• your case is a disciplinary case
• an Act or the Rules state that you may be legally represented.

PART D DETAILS OF RESPONSE
• Provide the reasons you are disputing the allegations made by the applicant.
• Use numbered paragraphs which are cross-referenced to the paragraphs in the applicant's application.
• Include a clear outline of the history and nature of the dispute.

PART E DETAILS OF WHAT YOU SEEK FROM THE TRIBUNAL
• As an example, you may ask the tribunal to dismiss the application. You will need to set out the reason why you think this should happen.
• If you are making a response, refer to each order that the applicant seeks, and by reference to the numbered paragraphs for that order.

Attachment:- Response-to-mcd-minor-debt.rar