Bob signs on to work on contract for Blair as an operations supervisor at a series of Wine Tastings. Bob runs his own business and does not have any other discernible income and the contract is worth $30,000. Blair gives Bob no desk or office but he does tell Bob what to do for the most part. Bob gets upset at Blair's friend David and tells him in front of a group of people that he is an absolute idiot and must be the first person in his family to be able to walk upright. Bob meant it as a joke but David was very upset.

Discuss the potential liability issues for Blair and for Bob.Give reasons for your answer, referring to the relevant legal principles.