Shrestha Tailor is a budding fashion designer in Sydney whose aim is to design her own
clothes and sell them through a retail outlet owned by her. She decided to look for suitable
premises from which to sell her clothing designer goods. However, since she knew she
would not be able to finance this entire business, she asked her aunt for help to start her own
business.
Shrestha’s aunt, Mrs Moneypenny, owned many properties in Harris Park (Sydney). She
agreed to lease one of her shops to Shrestha at half the rental she would normally charge.
Shrestha inspected the premises and told her aunt that she would like to make some
alterations to the layout so as to give the clothing shop’ a smartdekko’ appearance.
Shrestha told her aunt that she wanted to start on the renovations immediately and would
speak to the local Council in Parramatta to get the necessary permits. Shrestha also agreed
that she would pay for these alterations which, after quotes had been given, were calculated at
$65,000. Shrestha told her aunt however, that she did not want to start on the renovation
project unless her aunt was certain that the property was for rent at the amount agreed.
Mrs Moneypenny said she would let Shrestha know in the next few days if she changed her
mind about renting the building. Shrestha also said that the opening of the shop on the date
agreed to in the proposed lease would help her to market her clothing designs from which she
expected to receive a healthy financial return. It was estimated that the renovations to the
shop would take six months, by which time Shrestha would have designed and created
clothes in time for the new fashion season.
A week after Shrestha spoke with her aunt, she started on the renovation project, having
heard nothing from her aunt. After several weeks after the renovation work began, Shrestha
noticed her aunt peeping into the window of the building in which the renovations were in
progress.