Jay's legal considerations are several. On some of those issues he is on firm legal standing while on others he should reconsider his position. The first issue facing Jay is how he should resolve the payment of the $15,000 contract payment that Westside Construction Group was promised by Jay in the event that project was completed by March 1. Ordinarily, the terms of a contract are unalterable once agreed upon but the situation presented between Jay and Westside are different and present an exception. The parties' original contract called for the contract to be completed by March 1st so the new contract involving the Port Torrens Football Club does not mark a new completion date but WCG's guarantee of completion provides WCG the capacity to contract with Port Torrens that otherwise they may not be able to do. WCG's assurance, through Tom, makes Jay's contract with Port Torrens a reality (Musumeci v. Winadell Pty. Ltd., 1994). Parties to a contract are permitted the opportunity to alter the terms of the contract but such alteration must be by mutual agreement and must be supported by consideration. In the instant case, consideration is definitely present in the form of the additional $15,000 payment by Jay and WCG's agreement to complete the project earlier. If Jay has any argument that he is not obligated to pay WCG the additional consideration it must be based on the fact that Tom, the project manager for WCG, did not have authority to bind WCG (Chapple, 2002). Unfortunately, even if Tom lacked such authority, Jay still must get by the WCG detrimentally relied upon the representations made by Jay to Tom. Undoubtedly, WCG incurred additional expenses and time restraints in an effort to complete the contract in a timely manner (Walton's Stores (Interstate) Ltd. v. Maher, 1988). For whatever reason, Jay was the one that made the offer to WCG and must, therefore, have felt that WCG's guarantee was of value to him. WCG may have completed the contract by March 1st without the additional consideration but once the additional consideration was offered, and accepted, it becomes part of the contract and Jay is obligated to tender it.
Jay also has a potential problem in relationship to his agreement with Harris (Brereton, 2007). Contrary to the advise that Jay may received relative to his not being obligated to pay Harris because Jay has not signed the contract with Harris, Jay's position on this issue is similar to his position relative to the $15,000 payment to WCG (Empirnall Holdings Pty. Ltd. v. Machon Paull Partners Pty. Ltd., 1988). This time, however, Harris is the principal and his signature on the contract with Jay firmed the agreement. Jay made the offer, reviewed Harris' plans, and encouraged him to begin and complete the work. Under such circumstances, Jay cannot subsequently avoid liability through a technicality such as his not having signed the contract. Harris has completed 66% of the contract and Jay would be stopped from denying the existence of an agreement. The fact that the mural is no longer wanted by the new buyers may have afforded Jay the opportunity to strike a deal with Harris but that opportunity was likely lost when Jay did not broach the issue when the sale to the Port Torrens Football Club was being negotiated. At a minimum, Harris is entitled to 2/3 of the contract price based on quantum meruit (Planche v. Colburn, 1831).
Jay's concern regarding the chandelier and the purchase made by Adelaide City Council should be abandoned. First, he no longer needs the chandelier as the property has been sold to the Port Torrens Football Club and, secondly, he is likely to lose any claim for damages as the facts do not support his position. Jay attempted to purchase the chandelier for less than that originally purposed by the seller and balked at the terms that were subsequently offered by the seller. By the time that Jay was prepared to accept the seller's counter-offer, the chandelier had been purchased by the Adelaide City Council. Jay's argument, if he were to decide top proceed against the seller, was that he had conveyed his acceptance by mail and that such posting occurred prior to the date that the Adelaide City Council had tendered its acceptance. Unfortunately for Jay, his posting of his acceptance by regular mail does not constitute receipt of acceptance by the seller unless the seller (offeror) intended that acceptance be accepted in that manner (Tallerman & Co....
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