Joan runs a spa centre called ‘Beauty from Within Pty Ltd’. She decides to do a special promotion by sending an email to all 100 existing customers on her database stating the following:
“You are entitled to a 50% discount on a free spa treatment package (normally valued at $100) if you visit the spa at least three times a month and produce a copy of this promotion voucher. Promotion is for the period of 8 September 2015 to 8 June 2016.”
Joan had also sent out another similarly worded email to her friends and family but this time stating they were entitled to a discounted spa treatment package if they visited the spa at least once a month.
In January 2016, 40 of her existing customers (who had complied with the promotion requirements) arrive at the spa centre (on various days that month) asking for the discounted spa treatment. Further, another 10 of her family members and friends (who complied with the promotion requirements) turned up asking for the discounted spa package.
Joan is overwhelmed by the response and decides to put up a display sign in the window of the spa centre stating, ” The promotion for a free spa treatment package as advertised has now ended.”
Explain, with reference to relevant legal principles and cases, if there is a legally binding contract in the following scenarios between the customers and the spa centre:
(a)40 customers produce the promotion voucher the day before the notice is put up in the window.
(b)40 customers had complied with the requirements of the promotion but when they turned up, they noticed the display sign terminating the promotion.
(c)5 customers did not have a copy of the promotion voucher with them when they turned up.
(d)Joan wants to argue that the payment of $50 on the spa treatment package is insufficient as the value of the package is normally $100 and hence, there is no legal obligation to offer the package at the discounted price.
(e)Joan wants to argue that she is not legally obliged to provide the promotion to her friends and family members.
John decided to try a recreational activity known as ‘Flying-Fox’ which required the wearing of a harness as a participant is swung from treetop to treetop on a line. After he had paid for the activity, a company representative gave him a receipt. John was in a hurry to do the activity and did not notice the following wording at the back of the form. “You agree to be bound by the terms and conditions found on the noticeboard located at the entrance of the recreational activity.”
As John was having his harness fastened by the instructor, he saw the noticeboard (mentioned on the receipt) which was placed at the entrance of the activity and it had the following wording:
“All participants in this activity agree that you assume your own risk. The company and its employees are not liable for injury or property damage howsoever caused.”
While attempting the activity, his harness gave way and John fell from a height, causing his legs to be fractured. Advise John if he can successfully sue the recreational company for damages for his personal injury? Your answer should focus on principles in contract law only (particularly, the chapter on terms of a contract).