(Contract Law) Required:

Using relevant contract law principles and cases to support your arguments,

answer BOTH (a) and (b):

Julie owns a hall and runs a business called 'Learn to Dance' offering dancing lessons at the hall every night of the week. In January the sound system breaks down and she asks Repairs Pty Ltd to fix the system. Repairs Pty Ltd tells Julie that it will have to take the system away to repair it but it will be back in two nights.

Julie arranges to close her hall and cancel dancing lessons for two nights and expects she will lose business only for those two nights. However, due to Repairs Pty Ltd's carelessness the sound system is not returned for 14 nights.

Julie wishes to sue Repairs Pty Ltd for damages. She claims she lost profits from 14 nights of dancing lessons that had to be cancelled.

In addition on one of those nights she had arranged for a brass band to perform live at the hall and she had expected to earn an additional $1,000 from the ticket sales.

Required: Discuss the legal issues arising in contract law as follows:

(a) Advise Julie what legal rights she has against Repairs Pty Ltd and how much she is likely to recover from them in damages. Use legal principles and cases in your answer.

(b) Explain any defences Repairs Pty Ltdmay have to Julie's claims.