Legal Problem – Contract Law

Molly owns a beautiful hinterland property on the Gold Coast which she has named ‘The Sanctuary’. In her old age, she is finding it increasingly difficult to maintain the property and the huge grounds. She has recently learnt that her estranged sister’s twin children, Pam and Pete, will be commencing university studies on the Gold Coast and will need a place to live. She decided to ring Pam, with whom she shared a special
bond as she had cared for her right up to her teenage years, before a family misunderstanding caused her and her sister, the twins’ mother, to grow apart for a considerable number of years.

Below is what transpired during her telephone conversation with Pam:
Pam: Hello, Aunt Molly, it’s been a while! So good to hear from you! And yes, Pete and I will be coming to live on the Gold Coast. Thanks so much for inviting us to live with you. I hear you have a gorgeous property – can’t wait! We are happy to pay you $100 per week each, as suggested.
Molly: I’m so glad we have re-connected. I’m really excited for you and Pete about your university studies. My house is much too big for me now and even with you two here, there will still be plenty of space. I hear that Pete runs a lawnmowing business and I do have acres to mow! See you both in a fortnight!
Pam and Pete arrived at The Sanctuary and all went well in the first five months of shared living. They made their weekly payments of $100 each on time. Several times, without Molly asking, Pete would mow the property, a job for which Molly would normally pay her gardener $300 each time to mow on a regular basis. Pete also kept
his gardening business going on a part-time basis, charging Molly’s neighbours commercial rates for lawn-mowing at a rate similar to what Molly’s gardener would charge.
Pete, being entrepreneurial, advised Molly to start a bed-and-breakfast business as The Sanctuary would be perfect for it. Pam, too, encouraged her aunt to do so.
However, discussions turned sour and there was an irretrievable breakdown in their relationship. Eventually, Molly asked them to leave her property, giving them 48 hours’ notice.

Advise Pam and Pete