Ms. Woods owns an event management company since October, 2009. In 2010, she had agreed to host her son's wedding on January 1st, 2011 at her home and had decided to renovate the large gardens.
Ms. Woods had made this decision hoping to gain business from her in-laws, the Planters who own a chain of five hotels.
Ms. Woods was also a natural enthusiast, as was common knowledge in the social circles she and David Baker of Baker & Sons Pty Ltd moved.
She has communicated beforehand the importance of the renovation project, although had not expressly stated that she was hoping to gain business from her in-laws as she had assumed Mr. Baker would already know due to their personal relationship as well as similar social standing.
On February 2010, Ms. Eleanor Woods started negotiations for a contract with D Baker & Sons Pty Ltd for complete renovation of her large gardens.
It was an implied term of the contract that the designs of D Baker & Sons Pty Ltd would be completely 'unique.'
The contract price was $300,000.
D Baker was advised by his accountant not to agree to this low price because the firm was already in financial straits.
The payment for the contract was to be made in four equal installments of 20 percent by Ms. Woods to D Baker & Sons Pty Ltd upon completion of each stage of the renovation, with the last payment to be made after the conclusion of the contract on January 7th, 2011.
Clause 17 of the contract stated that it was 'D Baker & Sons does not accept liability for representations that are not specifically included in this written contract' and it was not mentioned in the contract that their designs would be 'unique.'
Clause 22.1 of the contract stated that 'the work must be completed to a high standard by December 25th 2010.”
Clause 23.3 specified that the timber used for the walkways would be 'Australian hardwood.'
The garden design was expressly described in the contract, which featured covered timber walkways, exotic Australian plants, waterfalls and ponds, and a large timber gazebo overlooking the river.
Due to a shortage of 'Australian jarrah timber,' construction was delayed and finally D Baker & Sons Pty Ltd had to outsource the timber from overseas in November, 2010.
The builders had finished work on December, 24th 2010, one day before the deadline of the contract. However, it was not according to the contract which required a 'high standard' of renovation (Clause 22.1) as the gazebos and walkways had not been primed, painted and sealed according to contractual specifications. The plants were also not planted early enough to achieve the desired effect so there were many gaps in the arbor.
Ms. Woods was told by her son's in-laws that the design was not 'unique' but was a copy, as she discovered of another design by D Baker & Sons Pty ...