Read It!Amelia Earhart was a famous pilot. She set many records in her time. She flew higher than any other woman and was the first woman to cross the Atlantic Ocean. Earhart also attempted to fly around the world. During one part of her journey, she was scheduled to land on a small island in the Pacific Ocean. However, she never arrived. Historians think that she may have had a bad map and become lost. She might have run out of fuel and crashed into the ocean. They have never been able to find her plane. Nobody is sure what happened to Earhart.Do It!Earhart _________.Press enter to interact with the item, and press tab button or down arrow until reaching the Submit button once the item is selectedA disappearedB performedC improvedD forgot
Question
Read It!Amelia Earhart was a famous pilot. She set many records in her time. She flew higher than any other woman and was the first woman to cross the Atlantic Ocean. Earhart also attempted to fly around the world. During one part of her journey, she was scheduled to land on a small island in the Pacific Ocean. However, she never arrived. Historians think that she may have had a bad map and become lost. She might have run out of fuel and crashed into the ocean. They have never been able to find her plane. Nobody is sure what happened to Earhart.Do It!Earhart _________.Press enter to interact with the item, and press tab button or down arrow until reaching the Submit button once the item is selectedA disappearedB performedC improvedD forgot
Solution
A disappeared
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For many years, Amelia Airheart ran a boutique hotel in the Perth Hills. Around three years ago, Amelia decided to sell the business and retire. She advertised the business in the local newspaper, describing it as ‘an exciting business opportunity’. Bonnie Boeing saw the advertisement and expressed an interest in buying the hotel. At a meeting, Amelia gave Bonnie the financial records of the business and told her that it was very successful due to its loyal customer base. She added: ‘the rooms are getting a little shabby but with a spruce up and some good marketing you will be able to grow the business even further’. The financial records for the business showed that profits had declined somewhat in recent years but were still healthy. In fact, Amelia had doctored the records. The business had been running at a loss for many years and Amelia was desperate to get it off her hands. Bonnie agreed to buy the hotel for the full asking price of $5 million. She then invested a further $500,000 renovating each of the ten rooms. She replaced all of the carpets, light fittings and curtains, and repainted every room. Bonnie also spent $250,000 updating the plumbing throughout the hotel. When the renovations were complete, she paid another $50,000 for a full page advertisement in the local newspaper, proudly announcing that the hotel was under new management and had re-opened for business. For the next few months, business was slow. By the end of Bonnie’s first year in business there were so few bookings that she made a substantial loss. The losses increased in the next year, and the next. In despair, Bonnie telephoned Amelia. She said: ‘I’m failing here! Can you help?’ Amelia replied: ‘Afraid not. I knew that hotel was a loser. I hadn’t made a profit for years’. Shocked, Bonnie said: ‘I can’t believe you lied to me. I want my money back – now!’ However, Bonnie struggled on for another year before seeking legal advice. Her lawyer told her to immediately walk away from the business and commence proceedings against Amelia. He drafted the writ for her, claiming ‘rescission and/or damages for deceit’. Amelia, meanwhile, invested the $5 million sale price for the hotel in an acreage of land in the forest. She planned to build a large house on the block in which she would see out her retirement. She contracted with Charles Chindberg to construct the house. Charles subcontracted the whole job to Donald Douglas. The contract between Charles and Donald provided for a contract price of $500,000, with $100,000 to be paid up-front and the balance at completion. Donald commenced work, even though Charles had not paid the $100,000 instalment. A couple of days into the job, Donald discovered that the site sat on a bed of caprock which would have to be removed. He informed Charles, saying: ‘This will blow out the budget. We’re talking at least an extra $50,000’. Charles replied: ‘Ah - these things happen. I’ll run it past Amelia but your estimate sounds OK’. Donald didn’t hear back from Charles so got on with the caprock removal. The caprock turned out to be even more extensive than Donald had anticipated and cost $100,000 to remove. About a year later, Donald finished the job and sent Charles an invoice for $600,000. Charles forwarded it to Amelia who exclaimed: ‘This isn’t what we agreed! I’m not paying this!’ Not having been paid by Amelia, Charles was unable to pay anything to Donlad. Shortly afterwards, Charles became insolvent. Answer the following questions: 1. Can Bonnie rescind her contract with Amelia and, if so, what can she recover? 2. Does Donald have a claim for restitution against Amelia or Charles and, if so, in what amount?
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