Final Examination Question

Last Month Quentin lost his job working in the UNSW Law School photocopy room, and on his way home purchased a lottery ticket. He won big and bought a business, called Abdo ’s Diamond Cutting Works. Quentin places an order with Abdo ’s cousin in Damascus, Syria, Mussa, to buy 3 newest model diamond cutting machines at a price of $150,000 per machine “Delivered Duty Paid” at Darling Harbour, Sydney. (At the time of the order, Abdo only had one machine.) These cutting machines can only be purchased in Syria. Each new machine is to be delivered at Darling Harbour, Sydney, at the end of each month commencing June 2011. The Mussa Machines Ltd purchase order form that Quentin signs says in relevant part:
“13. Time is of the essence for payment.
14. Delivery must occur within 30 days of scheduled delivery dates.””
After delivering in June, Mussa tells Quentin that he will deliver no more machines. Mussa says that because Syria has cut off diplomatic relations with Australia because the Australian Government has unlawfully interfered in Syria’s internal affairs, and he has been ordered by the Syrian Government to deliver all goods destined for Australia to the Syrian Government stores in Damascus instead. He says that the Syrian secret police are already investigating him, and he cannot say any more about it.
Quentin does not want to pay for any of the machines at all. He tells you he has decided to keep using Abdo ’s old diamond cutting machine instead.
Quentin tells you also that last week, he realised he only needed one new machine and agreed with Harry Cohen of Cohen’s Diamond Cutting Emporium to sell the first two machines received from Syria to Harry. The price was $175,000 per machine. In May the going price for these exquisite machines was $195,000 (as opposed to $135,000 for the older models), so Harry though he was getting a good deal.
In the post-GFC environment, now that the stimulus moneys have been spent, demand for diamonds in Australia has dropped a great deal, and as no diamond merchants are buying machinery and fittings for jewellery, regular diamond cutting machines now sell for only $100,000 each. The newest model diamond cutting machines from Syria however, having become scarce in Australia and can only be bought second-hand on the Amsterdam and New York markets for $250,000.
Quentin has also kept up his love of vintage cars. He has always had a little-business-on-the-side because his job at the University was very boring.
His little business on the side is finding private buyers for people who want to sell vintage motor vehicles. He charges his vendor clients a 10% commission on successful sales.
In February of this year Lady Plotski came to Quentin and told him she wanted to sell her 1921 model Bentley. Quentin took some photographs of the car in her driveway, with her standing, smiling, beside it. Lady Plotski agreed that Quentin could accept any offer of $20,000 or more on her behalf. She, however, would keep the car meanwhile.
In March, B. T. Drum (the hip-hop artist) asked Quentin to sell an old Aston Martin (for no less than $50,000), and an old Harley Davidson motorcycle (for no less than $10,000) for him. He left the Aston Martin and the Harley Davidson at Quentin’s garage. B. T. Drum instructed Quentin that he would keep the Aston Martin’s registration papers until he has received his money. He insisted that Quentin not tell anyone that the Aston Martin was B.T. Drum’s Aston Martin. B. T. Drum also required that any payment must be by deposit to his numbered Swiss bank account.
After months without success in selling anything, Quentin's bank overdraft had reached its $100,000 limit and he was desperate to make a sale. Quentin arranged to meet Bernard, a second hand car dealer over a scotch at Quentin’s home. Quentin showed Bernard the photograph of Lady Plotski with her Bentley, and told him the car had been in the Plotski family since leaving the showroom, and was in mint condition. Bernard said he would buy it, but not for a dollar more than $40,000. Quentin agreed to the sale.
Then Quentin took Bernard around the back and showed him the Aston Martin and the Harley Davidson. He said: "These are my own. The Aston Martin was my grandfather's and I inherited it from him last year. And I have owned the Harley for about 15 years." Bernard looked over the car, peered in to the glove box ever so quickly, shut the glove box, and promptly offered Quentin $60,000 for the car and $5,000 for the Harley Davidson. Just as quickly, Quentin accepted these offers, and said to Bernard: “It’s all yours.” He took $65,000 cash from Bernard, and only afterwards remembered that he was supposed to deposit the money in a bank account the details of which he had quite innocently misplaced.
Bernard drove the Aston Martin away, and said he would be back to collect the bike. The next day Bernard telephoned Quentin to say that he had found a bottle of the world’s most expensive cognac worth $10,000 in the glove box. He said: You can keep the bike, and I’ll keep the cognac. It is mine now anyway.”
When Quentin went to see Lady Plotski she refused to part with her Bentley at a price of only $40,000.
B. T. Drum also refused to go ahead with either sale, saying that he had decided to keep both vehicles. He demanded that Quentin return them “absolutely intact”.
Quentin knows he is in an awful pickle.

Advise Quentin in plain language, succinctly and clearly:
• Who can he sue, for what remedy and on what grounds?
• What damages he can claim and from whom?
• What defences can he successfully raise against the conversion claims brought by each of BT Drums and Lady Plotski?
• What additional facts you need to know before you prepare a statement of claim?