Contracts 2 Assignment: Defendant's Outline, Griffith Court, 2018
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This document presents the defendant's outline of submissions in the case of Varela v. White, heard in the Griffith Court of Queensland. The case revolves around a contract dispute related to the purchase of a restaurant. The defendant, Ms. White, argues against claims of misleading or deceptive conduct and undue influence. The submissions address the application of Australian Consumer Law (ACCC) and Australian Contract Law, presenting arguments that Ms. White did not engage in any misleading practices and that the contract was not vitiated by undue influence exerted by a third party. The outline details the facts, the defendant's key arguments, including the lack of urgency in selling the restaurant, the disclosure of information, and the payment terms. It also discusses the role of Sabela Varela and her boyfriend, Roger, in the events leading up to the contract and the decision to purchase the restaurant. The document includes citations to relevant legal authorities and references to the agreed statement of facts. The defendant's counsel provides a detailed analysis of the events and legal principles to support the defense against the plaintiff's claims.
IN THE GRIFFITH COURT OF QUEENSLAND
AT [NATHAN OR GOLD COAST]
Proceedings: No. 13/2018
BETWEEN
Xiana Varela Plaintiff
and
Letitia White Defendant
PLAINTIFF/DEFENDANT’S OUTLINE OF SUBMISSIONS
SUMMARY OF THE FACTS
Ms.Whiteopened the restaurant which became popular in the South Brisbane. Xiana
Varela and her son met Ms.White to purchase the restaurant. Xiana informed that she
could invest $1 million only. Ms.White told her that she can give deposit on signing
contract and remaining amount in instalments. She paid to interior decorator and hired
a builder for renovations.Ms.Whiteinform her that lease could not be assigned on the
decided date, Xiana told her to finalize it earlier. Meanwhile, Xianagot the
information that a new development had been allowed by the Council. Xiana got
angry and informed her of cancelling the deal.
DEFENDANT’S SUBMISSIONS
1. Ms. White did not engage in misleading or deceptive conduct.
2. The contract is not vitiated by undue influence exercised by Sabela Varela.
1.0 (SUBMISSION 1)
1.1 Under ACCC, a business must not engage in illegal conduct that could
mislead or deceive or expected to mislead or deceive consumers or
other businesses. The overall impression created by the conduct must
not be false or inaccurate.1
1.1.1 Ms. White apologized to Xiana that she had been informed
about the new development and she intended to inform it to
Xiana but had forgotten.
1 ACCC, Advertising and Selling Guide - Misleading or Deceptive Conduct (2018a) Australian
Competition and Consumer Commission
<https://www.accc.gov.au/publications/advertising-selling/advertising-and-selling-guide/avoid-
misleading-or-deceptive-claims-or-conduct/misleading-or-deceptive-conduct>.
AT [NATHAN OR GOLD COAST]
Proceedings: No. 13/2018
BETWEEN
Xiana Varela Plaintiff
and
Letitia White Defendant
PLAINTIFF/DEFENDANT’S OUTLINE OF SUBMISSIONS
SUMMARY OF THE FACTS
Ms.Whiteopened the restaurant which became popular in the South Brisbane. Xiana
Varela and her son met Ms.White to purchase the restaurant. Xiana informed that she
could invest $1 million only. Ms.White told her that she can give deposit on signing
contract and remaining amount in instalments. She paid to interior decorator and hired
a builder for renovations.Ms.Whiteinform her that lease could not be assigned on the
decided date, Xiana told her to finalize it earlier. Meanwhile, Xianagot the
information that a new development had been allowed by the Council. Xiana got
angry and informed her of cancelling the deal.
DEFENDANT’S SUBMISSIONS
1. Ms. White did not engage in misleading or deceptive conduct.
2. The contract is not vitiated by undue influence exercised by Sabela Varela.
1.0 (SUBMISSION 1)
1.1 Under ACCC, a business must not engage in illegal conduct that could
mislead or deceive or expected to mislead or deceive consumers or
other businesses. The overall impression created by the conduct must
not be false or inaccurate.1
1.1.1 Ms. White apologized to Xiana that she had been informed
about the new development and she intended to inform it to
Xiana but had forgotten.
1 ACCC, Advertising and Selling Guide - Misleading or Deceptive Conduct (2018a) Australian
Competition and Consumer Commission
<https://www.accc.gov.au/publications/advertising-selling/advertising-and-selling-guide/avoid-
misleading-or-deceptive-claims-or-conduct/misleading-or-deceptive-conduct>.
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1.1.2 Under Australian Contract Law, a contract should be written or
verbal agreement between the two parties and it is essential for
both the parties to the contract to understand the terms and
conditions of the contract as meant in the contract.2She had
prepared the contract and provided it to Xiana to be signed by
her and got it signed by Xiana, which proves that Xiana agreed
to all the terms and conditions of the contract.
1.1.3 Ms. White was not in urgency to sell the restaurant and was
looking for a good buyer when Xiana contacted her. She did
not have requirement to sell the restaurant, as the restaurant
was doing well when she was planning to sell her, because she
was under stress of other projects she was associated with. So,
there was not a single reason for which, Ms. White would
deceive or misled Xiana for the finalization of sell contract.
1.2 Ms. White informed Xiana that the lease could not be assigned as the
solicitors for White Enterprises Pty. Ltd. had not finalized the
agreement.
1.2.1 Under Australian Contract Law, if the agreement needs
approval of the third party associated with the contract, the
consideration is required and it becomes essential for the party
to the contract to get the approval before entering into
contract.3If Ms. White had to deceive Xiana, she would have
got the lease assigned on the decided date and have taken the
money and then waited for the solicitors to finalize the
agreement, but she disclosed all the information to Xiana and
told to get the lease on hold until then.4It proves that she was
following the legal procedures while entering into contract with
Xiana.
1.2.2 Ms. White informed the solicitors about the lease and asked
them for agreement, but she was informed that it would take
time as the other two solicitors were not available until then.
So, she did not deceive anything from solicitors as well.
1.3 Ms. White advised Xiana to provide a deposit of $130,000 during
contract formation and $870,000 on lease assignment and instalments
of $100,000 for next three years for complete payment.
1.3.1 According to Australian Competition and Consumer
Commission, businesses are not allowed to make any
2Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-_July_2012.pdf?
sfvrsn=0>.
3Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-_July_2012.pdf?
sfvrsn=0>.
4 ACCC, Contracts & Agreements (2018b) Australian Competition and Consumer Commission
<https://www.accc.gov.au/consumers/contracts-agreements>.
verbal agreement between the two parties and it is essential for
both the parties to the contract to understand the terms and
conditions of the contract as meant in the contract.2She had
prepared the contract and provided it to Xiana to be signed by
her and got it signed by Xiana, which proves that Xiana agreed
to all the terms and conditions of the contract.
1.1.3 Ms. White was not in urgency to sell the restaurant and was
looking for a good buyer when Xiana contacted her. She did
not have requirement to sell the restaurant, as the restaurant
was doing well when she was planning to sell her, because she
was under stress of other projects she was associated with. So,
there was not a single reason for which, Ms. White would
deceive or misled Xiana for the finalization of sell contract.
1.2 Ms. White informed Xiana that the lease could not be assigned as the
solicitors for White Enterprises Pty. Ltd. had not finalized the
agreement.
1.2.1 Under Australian Contract Law, if the agreement needs
approval of the third party associated with the contract, the
consideration is required and it becomes essential for the party
to the contract to get the approval before entering into
contract.3If Ms. White had to deceive Xiana, she would have
got the lease assigned on the decided date and have taken the
money and then waited for the solicitors to finalize the
agreement, but she disclosed all the information to Xiana and
told to get the lease on hold until then.4It proves that she was
following the legal procedures while entering into contract with
Xiana.
1.2.2 Ms. White informed the solicitors about the lease and asked
them for agreement, but she was informed that it would take
time as the other two solicitors were not available until then.
So, she did not deceive anything from solicitors as well.
1.3 Ms. White advised Xiana to provide a deposit of $130,000 during
contract formation and $870,000 on lease assignment and instalments
of $100,000 for next three years for complete payment.
1.3.1 According to Australian Competition and Consumer
Commission, businesses are not allowed to make any
2Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-_July_2012.pdf?
sfvrsn=0>.
3Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-_July_2012.pdf?
sfvrsn=0>.
4 ACCC, Contracts & Agreements (2018b) Australian Competition and Consumer Commission
<https://www.accc.gov.au/consumers/contracts-agreements>.
statements that are incorrect or that might create false
impressions. Ms. White had not made a single misleading claim
and whatever she said during three meetings were all genuine
claims regarding the property.5Ms. White was not intended to
deceive or mislead Xianabecause she agreed to take the
payment in instalments. If she intended to deceive Xiana, she
would have taken all the payment instantly at the time of
finalization of deal as she would have doubt that if Xiana gets
information about the new development at the site.6
1.3.2 Ms. White suggested the way of payment of complete amount
herself, which shows that it was not her intention to deceive but
she just forgot to inform Xiana about the development being
taken place at the site.7
1.3.3 Moreover, she was provided with lease for 20 years by the
Council and her restaurant was not under any threat so, why
would she deceive or mislead Xiana to sell the restaurant.
2.0 (SUBMISSION 2)
2.1 The contract is not vitiated by undue influence exercised by Sabela
Varela.
2.1.1 Xiana could claim that she entered into the contract because of
the undue influence by Sabela, who is her daughter. As
informed by Xiana to Ms. White at the time of signing of
contract, that no one else was party to the contract except her
and she signed the contract as the sole party to the contract. She
could not now claim that she was under the undue influence of
the third party to enter into contract.
2.2 Sabela was her daughter and she was a lawyer and was 24 years old
mature person.
2.2.1 Sabela had legal knowledge and she and her boyfriend agreed
to help Xiana in the purchase of the restaurant. Moreover, she
and her brother found the deal fair when they met Ms. White.
They convinced their mother to purchase the restaurant as it
was their mutual agreement that they were not being deceived
and the restaurant itself was doing well.8
2.2.2 They had the knowledge that the reputation of the restaurant
was quite good and it was famous in South Brisbane.
Considering all these points, they convinced their mother to
purchase the restaurant considering it a fair deal.9
5ibid
6 Aitken Whyte Lawyers, Misleading and Deceptive conduct under the Australian Consumer Law,
Litigation Lawyers Brisbane, Solicitors (2016)
Awbrisbanelawyers.com.au<http://www.awbrisbanelawyers.com.au/misleading-deceptive-conduct-
australian-consumer-law-lawyers-brisbane-solicitors.html>.
7 Legal Vision, A Guide to Misleading or Deceptive Conduct | Legalvision (2016)
LegalVision<https://legalvision.com.au/guide-misleading-or-deceptive-conduct/>.
8 Australian Catholic University, Subject Guides: Contract Law: Legislation (2018)
Libguides.acu.edu.au <https://libguides.acu.edu.au/c.php?g=234001&p=1553409>.
9 Australian Contract Law, Aus Contract Law (2018) Australiancontractlaw.com
<https://www.australiancontractlaw.com/>.
impressions. Ms. White had not made a single misleading claim
and whatever she said during three meetings were all genuine
claims regarding the property.5Ms. White was not intended to
deceive or mislead Xianabecause she agreed to take the
payment in instalments. If she intended to deceive Xiana, she
would have taken all the payment instantly at the time of
finalization of deal as she would have doubt that if Xiana gets
information about the new development at the site.6
1.3.2 Ms. White suggested the way of payment of complete amount
herself, which shows that it was not her intention to deceive but
she just forgot to inform Xiana about the development being
taken place at the site.7
1.3.3 Moreover, she was provided with lease for 20 years by the
Council and her restaurant was not under any threat so, why
would she deceive or mislead Xiana to sell the restaurant.
2.0 (SUBMISSION 2)
2.1 The contract is not vitiated by undue influence exercised by Sabela
Varela.
2.1.1 Xiana could claim that she entered into the contract because of
the undue influence by Sabela, who is her daughter. As
informed by Xiana to Ms. White at the time of signing of
contract, that no one else was party to the contract except her
and she signed the contract as the sole party to the contract. She
could not now claim that she was under the undue influence of
the third party to enter into contract.
2.2 Sabela was her daughter and she was a lawyer and was 24 years old
mature person.
2.2.1 Sabela had legal knowledge and she and her boyfriend agreed
to help Xiana in the purchase of the restaurant. Moreover, she
and her brother found the deal fair when they met Ms. White.
They convinced their mother to purchase the restaurant as it
was their mutual agreement that they were not being deceived
and the restaurant itself was doing well.8
2.2.2 They had the knowledge that the reputation of the restaurant
was quite good and it was famous in South Brisbane.
Considering all these points, they convinced their mother to
purchase the restaurant considering it a fair deal.9
5ibid
6 Aitken Whyte Lawyers, Misleading and Deceptive conduct under the Australian Consumer Law,
Litigation Lawyers Brisbane, Solicitors (2016)
Awbrisbanelawyers.com.au<http://www.awbrisbanelawyers.com.au/misleading-deceptive-conduct-
australian-consumer-law-lawyers-brisbane-solicitors.html>.
7 Legal Vision, A Guide to Misleading or Deceptive Conduct | Legalvision (2016)
LegalVision<https://legalvision.com.au/guide-misleading-or-deceptive-conduct/>.
8 Australian Catholic University, Subject Guides: Contract Law: Legislation (2018)
Libguides.acu.edu.au <https://libguides.acu.edu.au/c.php?g=234001&p=1553409>.
9 Australian Contract Law, Aus Contract Law (2018) Australiancontractlaw.com
<https://www.australiancontractlaw.com/>.
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2.2.3 Furthermore, the boyfriend of Sabela named Roger, who was
Events Coordinator of the Council, informed them about the
Food and Wine Festival being held in South Brisbane and one
of the major venues for the festival had been destroyed by fire.
He suggested them that if they purchase that restaurant and take
over the events, Xiana would be able to earn an additional
profit of $40,000 during the festival week.10
2.2.4 It was their combined decision to purchase the hotel
considering the profits, they could earn, the reputation of the
hotel and fair deal of purchase.11 So, it cannot be considered
that the contract was vitiated in the undue influence of the
Sabela over Xiana.
2.3 Xiana herself decided to purchase the restaurant and informed about
her ideas to Ms. White to modify the restaurant and to make some
alterations.
2.3.1 Xiana was sure that after certain renovations and purchase of
stylish furniture, the look of the restaurant would become more
attractive and the earnings will enhance as more and more
customers will be attracted.
2.3.2 Xiana had faith in her Spanish cooking style, as she decided to
modify some of the dishes to attract more customers. All these
planning in her mind clarifies that she was not under undue
influence of her daughter, but she was aware that the point
being made by her daughter to purchase the restaurant was
valid.12
2.3.3 Xiana was mature enough to take decisions related to financial
investments, as she inherited the property of her father and used
to live alone with her children and take care of them when her
husband used to be on office trips abroad for months.13 She
cannot just rely on her daughter for the decisions taken by her
that she purchased the restaurant.
If it pleases the court, those are the submissions for the defendant.
DATED this day of
[signed]
Name and student number
Senior counsel for the Defendant
10 Greg Carter, What Is Misleading & Deceptive Conduct? (2018) Findlaw.com.au
<http://www.findlaw.com.au/articles/6189/what-is-misleading-and-deceptive-conduct.aspx>.
11 Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-_July_2012.pdf?
sfvrsn=0>.
12 Legal Vision, What Is Misleading And Deceptive Conduct? (2015)
LegalVision<https://legalvision.com.au/what-is-misleading-and-deceptive-conduct/>.
13 Rule of Law, Case Note - Contract Law - Rule of Law Institute of Australia (2018) Rule of Law
Institute of Australia <https://www.ruleoflaw.org.au/contract-law/>.
Events Coordinator of the Council, informed them about the
Food and Wine Festival being held in South Brisbane and one
of the major venues for the festival had been destroyed by fire.
He suggested them that if they purchase that restaurant and take
over the events, Xiana would be able to earn an additional
profit of $40,000 during the festival week.10
2.2.4 It was their combined decision to purchase the hotel
considering the profits, they could earn, the reputation of the
hotel and fair deal of purchase.11 So, it cannot be considered
that the contract was vitiated in the undue influence of the
Sabela over Xiana.
2.3 Xiana herself decided to purchase the restaurant and informed about
her ideas to Ms. White to modify the restaurant and to make some
alterations.
2.3.1 Xiana was sure that after certain renovations and purchase of
stylish furniture, the look of the restaurant would become more
attractive and the earnings will enhance as more and more
customers will be attracted.
2.3.2 Xiana had faith in her Spanish cooking style, as she decided to
modify some of the dishes to attract more customers. All these
planning in her mind clarifies that she was not under undue
influence of her daughter, but she was aware that the point
being made by her daughter to purchase the restaurant was
valid.12
2.3.3 Xiana was mature enough to take decisions related to financial
investments, as she inherited the property of her father and used
to live alone with her children and take care of them when her
husband used to be on office trips abroad for months.13 She
cannot just rely on her daughter for the decisions taken by her
that she purchased the restaurant.
If it pleases the court, those are the submissions for the defendant.
DATED this day of
[signed]
Name and student number
Senior counsel for the Defendant
10 Greg Carter, What Is Misleading & Deceptive Conduct? (2018) Findlaw.com.au
<http://www.findlaw.com.au/articles/6189/what-is-misleading-and-deceptive-conduct.aspx>.
11 Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-_July_2012.pdf?
sfvrsn=0>.
12 Legal Vision, What Is Misleading And Deceptive Conduct? (2015)
LegalVision<https://legalvision.com.au/what-is-misleading-and-deceptive-conduct/>.
13 Rule of Law, Case Note - Contract Law - Rule of Law Institute of Australia (2018) Rule of Law
Institute of Australia <https://www.ruleoflaw.org.au/contract-law/>.
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References
ACCC, Advertising and Selling Guide - Misleading or Deceptive Conduct (2018a)
Australian Competition and Consumer Commission
<https://www.accc.gov.au/publications/advertising-selling/advertising-and-
selling-guide/avoid-misleading-or-deceptive-claims-or-conduct/misleading-or-
deceptive-conduct>
ACCC, Contracts & Agreements (2018b) Australian Competition and Consumer
Commission <https://www.accc.gov.au/consumers/contracts-agreements>
Aitken Whyte Lawyers, Misleading and Deceptive conduct under the Australian
Consumer Law, Litigation Lawyers Brisbane, Solicitors (2016)
Awbrisbanelawyers.com.au <http://www.awbrisbanelawyers.com.au/misleading-
deceptive-conduct-australian-consumer-law-lawyers-brisbane-solicitors.html>
Australian Catholic University, Subject Guides: Contract Law: Legislation (2018)
Libguides.acu.edu.au <https://libguides.acu.edu.au/c.php?
g=234001&p=1553409>
Australian Contract Law, Aus Contract Law (2018) Australiancontractlaw.com
<https://www.australiancontractlaw.com/>
Carter, Greg, What Is Misleading & Deceptive Conduct? (2018) Findlaw.com.au
<http://www.findlaw.com.au/articles/6189/what-is-misleading-and-deceptive-
conduct.aspx>
Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
ACCC, Advertising and Selling Guide - Misleading or Deceptive Conduct (2018a)
Australian Competition and Consumer Commission
<https://www.accc.gov.au/publications/advertising-selling/advertising-and-
selling-guide/avoid-misleading-or-deceptive-claims-or-conduct/misleading-or-
deceptive-conduct>
ACCC, Contracts & Agreements (2018b) Australian Competition and Consumer
Commission <https://www.accc.gov.au/consumers/contracts-agreements>
Aitken Whyte Lawyers, Misleading and Deceptive conduct under the Australian
Consumer Law, Litigation Lawyers Brisbane, Solicitors (2016)
Awbrisbanelawyers.com.au <http://www.awbrisbanelawyers.com.au/misleading-
deceptive-conduct-australian-consumer-law-lawyers-brisbane-solicitors.html>
Australian Catholic University, Subject Guides: Contract Law: Legislation (2018)
Libguides.acu.edu.au <https://libguides.acu.edu.au/c.php?
g=234001&p=1553409>
Australian Contract Law, Aus Contract Law (2018) Australiancontractlaw.com
<https://www.australiancontractlaw.com/>
Carter, Greg, What Is Misleading & Deceptive Conduct? (2018) Findlaw.com.au
<http://www.findlaw.com.au/articles/6189/what-is-misleading-and-deceptive-
conduct.aspx>
Consult Australia, Australian Contract Law (2012) Consultaustralia.com.au
<https://www.consultaustralia.com.au/docs/default-source/contracts-liability/
Consult_Australia_Response_to_AGD_Discussion_Paper_on_Contract_Law_-
_July_2012.pdf?sfvrsn=0>
Legal Vision, What Is Misleading And Deceptive Conduct? (2015a)
LegalVision<https://legalvision.com.au/what-is-misleading-and-deceptive-
conduct/>
Legal Vision, A Guide to Misleading or Deceptive Conduct | Legalvision (2016b)
LegalVision<https://legalvision.com.au/guide-misleading-or-deceptive-conduct/>
Rule of Law, Case Note - Contract Law - Rule of Law Institute of Australia (2018)
Rule of Law Institute of Australia <https://www.ruleoflaw.org.au/contract-law/>
_July_2012.pdf?sfvrsn=0>
Legal Vision, What Is Misleading And Deceptive Conduct? (2015a)
LegalVision<https://legalvision.com.au/what-is-misleading-and-deceptive-
conduct/>
Legal Vision, A Guide to Misleading or Deceptive Conduct | Legalvision (2016b)
LegalVision<https://legalvision.com.au/guide-misleading-or-deceptive-conduct/>
Rule of Law, Case Note - Contract Law - Rule of Law Institute of Australia (2018)
Rule of Law Institute of Australia <https://www.ruleoflaw.org.au/contract-law/>
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