Question 3:
Joanna receives a phone call from a potential new client, Ronald. Ronald explains that due to his worsening arthritis he’s no longer able to tend to his precious orchid collection. He is seeking Joanna’s help to come and tend to the orchids in his greenhouse each week.
After their phone conversation, where Joanna requested more details, Ronald emails Joanna explaining the specific rare types of orchid he has, and how they require special equipment and fertilizer for their maintenance. Joanna is concerned about the expenses and risks involved, and wants to ensure that Ronald sticks with the arrangement for an extended period. She prepares a custom agreement and emails a copy to Ronald, asking him to sign and return it. A few days later, when she hasn’t received any response from Ronald, Joanna calls him. “Oh yes, I saw the email,” says Ronald. “I’m just waiting for my nephew to come around and help me with the printer and scanner here, to send it back to you.”
“So, you’re definitely going ahead? Shall I get on with preparations to start caring for your orchids?” Joanna asks. Ronald says yes. oanna goes ahead and orders the special gloves, fertiliser and other equipment she’ll need for the job. In total, it costs her $1,000.
After another 4 days, Joanna still hasn’t received a signed copy of the agreement from Ronald. She calls him and leaves a voicemail, asking about the contract and when she can start tending to the orchids.
The next day Joanna receives an email from Ronald: “So sorry Joanna. My nephew has offered to help me with my orchids on his weekly visits. So, I won’t be needing your services after all!”
3. Can Joanna argue promissory estoppel against Ronald? (6 marks)