1. On 25 May 2022, Mr He again contacted Reno Reno and organised a dinner on 30 May 2022 in Melbourne CBD with Reno Reno's designer to discuss the proposed project.
2. On 31 May 2022, Reno Reno sent an "engagement proposal" document to Mr He outlining the work that would be completed under the proposal and the terms including terms in relation to the payment of the deposit.
3. The terms divided the project into three "stages" and required the payment of a $1,000 deposit before Reno Reno would commence the proposal. The deposit was fully refundable if the proposal and subsequent work didn't progress beyond stage 1. If the proposal reached stage 2 the deposit was no longer refundable.
4. The first two of the three stages in the engagement proposal are as follows (as written):

• - Undertake site inspection and evaluate design opportunities;
• - Review previous drawing for further investigation;
• - Prepare and request existing information for Liaise and coordinate with consultant;
• - Liaise with contractors and consultants such as Land Surveyor, Building surveyor, ESD and Structural engineer when required.
• - Stage 1 requires as $1000 deposit to commence; the deposit is fully refundable if the client decides not to proceed to Stage 2.

This stage involves the identification of the Client's requirements and gathering appropriate information. The preparation of design ideas that address the Client's brief.

• - Arrange, attend and record meetings with the client;
• - Provide recommendations for the appointment of other specialist consultants when required;
• - Develop and prepare information to adequately explain and explore the design concept and options;
• - Develop preferred design options;
• - Prepare design brief and list for other consultants;
• - Coordinate meetings, required drawings and reports from consultants;
• - Provide basic 3D visuals for further discution;
• - Provide an estimated total cost.
• - Prepare final design proposal for client sign off.

1. On 2 June 2022, after having received the engagement proposal document Mr He paid the $1,000.00 deposit to Reno Reno.
2. On 14 June 2022, Reno Reno provided the estimated total cost of the project. This is clearly listed as an item in stage 2.
3. On 11 August 2022, Mr He informed that they didn't wish to proceed with Reno Reno and requested their deposit be returned.
4. Reno Reno refused, asserting that that they had already performed a significant amount of work and that the project had already progressed to stage 2.

1. Mr He submitted that because he hadn't signed any paperwork there was no contract with Reno Reno and therefore he was entitled to have his deposit refunded.
2. Despite this argument, Mr He said that he didn't authorise Reno Reno to move to stage 2. Therefore he was entitled to the refund of his deposit.
3. Mr He further argued that all he wanted was a quote and that he ought not have to pay to receive a quote.
4. He provided an analogy that in my view encapsulates his argument:

When you go to a supermarket, you say, 'I feel my hair is itchy, I want to find a shampoo'. And the salesperson says, 'you better go to this brand". And I say,' how much is it?' 'Ah (it will) cost you five bucks.' 'Oh, too expensive I don't want to buy it.' 'No! I told you the price, you have to buy (it)!'

In the situation like me I've been set in the trap, I'm only asking for the quotation... I know they have done lots of jobs... similar to other builders. But asking for a quotation has become a legal agreement.

1. Mr He submitted that it was a big job that might cost $200,000 to $300,000 and that it was reasonable to go to different builders, He stated that this was the only builder that asked for a deposit to provide a quote.
2. Mr He also stated that he lived a long way from Melbourne and that Reno Reno only provided services that were within stage 2 for their own convenience so they didn't have to make a second trip.

1. Ms Jin Song, a Reno Reno designer and authorised officer, submitted that they had already conducted all the work for stage 1 after the initial contact from Mr He and Ms Zhang. They understood that they would be progressing straight to stage 2 and that they had contacted them saying they wanted to proceed to the next steps.
2. Ms Song stated that the discussion at the dinner held on 30 May 2022 was that once the deposit was paid they would proceed to the next steps. They would give a quote and provide a checklist. She forwarded them the engagement proposal on 31 May 2022 and that they had paid the deposit on 2 June 2022.
3. She stated that many jobs under stage 2 had already been completed and this was clear evidence that the agreement had progressed to stage 2. She stated in fact that the providing an estimated total cost was one of the items listed in stage 2. That this was the quote.
4. Ms Song listed the items already completed as per the list in stage 2 as:
   1. provide an estimated total cost;
   2. coordinate meetings, required drawings and reports from consultants;
   3. providing basic 3D visual for discussion; and
   4. develop and prepare information design concepts and options.
5. Ms song stated that she and the other designers at the dinner had expressly stated that if they chose to proceed the matter would immediately progress to stage 2 because all of the work under stage 1 had already been completed.

1. In determining whether Mr He and Ms Zhang were entitled to a refund of their deposit, I needed to determine whether the applicants and respondents had entered into a contractual agreement and if so what the terms of that agreement were.
2. On 31 May 2022, Mr He and Ms Zhang were sent the engagement document that outlined the payment of the deposit and clearly stated that it was only refundable if the project didn't progress to stage 2. This together with discussions at the dinner amounted to an offer that was accepted by Ms He and Mr Zhang as a result of their paying the deposit under that agreement two days later on 2 June 2022.
3. Mr He sought to dispute that there was a contract on the basis that they hadn't signed anything. Despite the fact that nothing was signed I was satisfied that there was an offer and accepted agreement on the evidence put before me at the hearing for the reasons above.
4. Mr He contended that he had never authorised the project to proceed to stage 2. However I accepted the evidence of Ms Song that all of the steps required for stage 1 had already been completed by the time of Mr He and Ms Zhang's second engagement of Reno Reno. I also note that there is no requirement in the engagement proposal for express authorisation before proceeding to the next stage.
5. Mr He's most impassioned arguments were along the lines that it was simply unfair that they were refused the refund of their deposit when all they wanted was a quotation. Mr He's argument on that point was summed up by his shampoo analogy. However the provision of 'an estimated total cost' was clearly listed as one of the items that would be provided after the agreement had progressed to stage 2.
6. I am satisfied that Reno Reno had incurred time and expense in preparing the quote for Mr He and Ms Zhang. Indeed Mr He said in his evidence that he knew that they had done '...lots of jobs...similar to other builders.' Mr He and Ms Zhang entered into an agreement for, among other things, the provision of an 'estimated total cost', in other words a quote. The terms of the agreement were such that they weren't entitled to a refund of the deposit once they reached the stage at which a quote was provided.
7. The fact that there was a clear written agreement and significant work completed clearly distinguish the facts of this case to that of going to a supermarket to ask for the price of a bottle of shampoo.