Question
Etherea SRL have reached the final round in a design competition for a luxury resort on the slopes of Mt Etna in Sicily. Their design
Etherea SRL have reached the final round in a design competition for a luxury resort on the slopes of Mt Etna in Sicily. Their design comprises a two-story complex with floor to ceiling windows, heated by geothermal energy from the mountain. A final report is due on Wednesday 4th May. Some months back, Etherea contracted with EarthPower Ltd to provide technical details of the underfloor heating and with Cupola SRL for architectural drawings. Their contracts specify that they must be completed by Tuesday 3rd May. On Friday 29th April, Lucia, a director of Etherea, calls a meeting with both EarthPower and Cupola executives. During the meeting she requests that both companies deliver their sections of the final report on Monday. They both promise to do so. On Monday, EarthPower deliver their documents but Cupola do not. On Tuesday morning, Lucia promises EarthPower a cash bonus. However, because Cupola's paperwork does not arrive until late in the afternoon, Etherea cannot complete their report in time to meet the 4th May deadline. They therefore fail to secure the lucrative contract to create the Mt Etna resort. Lucia plans to recover Etherea's lost earnings by (a) suing Cupola for breaching their agreement to deliver the documents on Monday and (b) not giving EarthPower the bonus she promised them. Q. Advise Lucia. By analysing the promises that have been made by Cupola and Etherea using the rules about consideration, help her decide whether either of her mitigation strategies will succeed.
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