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In January 2021, Lauren, an elderly widow without children, sold her house to her nephew, Thomas, a real estate agent, for $1.9 million, as this is what Thomas told her it was worth. It would have been worth more on the open market. They agreed that a deposit of $500,000 was payable immediately and the balance would be by way of a loan from Lauren to Thomas. Under the written terms of the loan, Thomas was to repay the principal over a 14 year period at the rate of $100,000 each year, payable on the anniversary of the sale. The written terms provided that no interest was payable. Lauren had no business experience and did not obtain any independent advice before selling her house and agreeing to the loan. She was very lonely at the time and was looking forward to sharing the house with Thomas. Recently they have had a serious disagreement. Lauren wants to know if the agreements to sell the house and make the loan are binding. Advise Lauren, giving legal support for your arguments using contract law principles (common law and/or statutory law) only. Jennifer decided to update her ensuite. She signed a written contract with Whale Constructions Pty Ltd (WC). This contract gave her a certain amount of money to spend on taps. Jennifer chose a particular style and brand, which she believed was within her allowed budget, and informed WC of her choice. When Jennifer was checking some invoices, she saw WC had invoiced her for an above budget amount on the taps. When she queried this John, from WC, explained that the tap model she had requested had been discontinued and that the tap style which replaced her model were the ones installed and she had said nothing at the time of installation. These new taps were more expensive. Jennifer refused to pay the extra money arguing WC should have advised her of the change and sought her specific approval before installing something else. Advise Jennifer as to her rights using contract law principles only in this situation
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