The following facts, individuals, events, businesses and personalities are fictional. Any resemblance to actual events, individuals, businesses
Question:
The following facts, individuals, events, businesses and personalities are fictional. Any resemblance to actual events, individuals, businesses and personalities is purely unintentional.
The Barchester City Council (BCC) were preparing for a high-profile royal visit when they encountered two contractual difficulties:
The royal party, which consisted of King and Queen and their aides, were scheduled to open a new wing of the Barchester Council House. As part of the royal visit to the Council House, the BCC were laying on a reception for the royal party. The BCC intended this to include a chocolate cake, as this was known to be the King's particular favourite.
A representative from the BCC entered into discussions with Rebecca, a locally famous confectioner, during which, on behalf of the BCC, the representative asked her to make the cake for the reception. However, the representative merely stated that the BCC would like a "celebration cake" and had assumed that Rebecca had already been told that this was to be a chocolate cake. Rebecca thought her brief was to make a fruit cake, as this is how celebration cakes are usually made. When Rebecca visited the BCC, she left details of the cake and a sample of the ingredients out of which she intended to make the cake. This included a sample of fruit, nuts and everything out of which you would ordinarily make a fruit cake. The Council paid Rebecca's fee for the catering. When the cake arrived, it was a wonderful celebration fruit cake and not a chocolate cake. The BCC purchased a chocolate cake from a local shop in an emergency, and returned Rebecca's cake.
Secondly, the BCC also intended to present the King with a special tie-pin to commemorate the visit. Local residents had raised funds to buy it. The BCC commissioned a jeweller in London to make the tie-pin, which was to be in the shape of a crown and studded with precious stones. The jewellers, Ford & Co, are an ancient established company who frequently deal with royalty and celebrities. They have a Royal Warrant and make jewellery themselves for the royal family. On the same day that the BCC's representative was due to collect and pay for the tie-pin, the following unfortunate event occurred:
Roger, who had heard about the royal visit and the tie-pin, posed as the BCC's representative (with forged documents). Ford & Co handed the tie-pin over to Roger, who paid for the pin and is now selling it at a considerable profit on the internet. Ford & Co wish to know whether they can get the tie-pin back, either from Roger or from anyone to whom it might be sold, as they feel that the incident is damaging their reputation considerably.
Advise the BCC as to whether their contract with Rebecca is void for the communication mistake about the cake, and advise Ford & Co as to whether their contract for the sale of the pin to Roger is void for mistaken identity. Do not discuss the law of misrepresentation in your answer.
Ethical Obligations and Decision Making in Accounting Text and Cases
ISBN: 978-1259969461
5th edition
Authors: Steven M. Mintz, Roselyn E. Morris