Problem
I. Virat and Sachin own a sports store in partnership. Virat completed the proposal form for insurance. He did not know that Sachin had previously been bankrupt. Sachin had previously disclosed this information in other insurance policies with other companies relating to his own personal insurance. InsureU issued the insurance policy and subsequently the shop and its contents was seriously damaged by fire. The fire was caused because a basket of chips cooking in oil was left unattended on the stove in a neighbouring fish and chip shop. The fire spread. Prior to the fire, the sports store business was not in financial difficulty. InsureU has refused to pay the claim on the basis that Virat answered "no" to the following question:
• Is there any additional information or detail of which you are aware and which may assist InsureU to assess the nature of the risks?
Virat and Sachin seek your advice about whether they can recover under the insurance policy or whether they could sue Sam, the owner of the fish and chip shop who was distracted, watching the cricket, when the chip oil caught alight. Advise them citing cases and legislation in your advice.
II. Jessica ordered and paid for flowers for her wedding from Odette, a local florist who grew her own flowers on a farm in Pialligo (ACT). Jessica met with Odette before the wedding. She ordered a large floral and eucalyptus centrepiece to hang from the ceiling of the reception venue. Odette had a centrepiece ready for another wedding. Jessica said, "That is perfect. I would like one just the same." Jessica also ordered bouquets for herself and her bridesmaid and buttonhole sprays for Oliver, the groom and his best man.
Jessica contacts you because she was very disappointed. The floral and eucalyptus centrepiece, while very nice, was nothing like the one she had been shown. It was a different shape and with different flowers, not even the same colours. At 10am on the morning of the wedding Odette had contacted Oliver, as arranged, to say that the buttonholes were ready for collection and they would be in the refrigerated cabinet on the front verandah. When Oliver went to collect them at 12.15 they had been stolen and as the shop shut at 12 noon it was not possible to obtain replacements in time. Jessica has contacted Odette who said that she provided a quality centrepiece and that she provided the buttonholes. She is sorry that they were stolen.
Jessica seeks your advice about whether there is any legal action she can take against Odette in relation to the floral and eucalyptus centrepiece or in relation to the buttonholes. Advise her citing cases and legislation in your advice.