Henry and Tracey are a young couple who wish to get married. They want to have the wedding reception at the Grand Palace Restaurant, a local restaurant specialising in functions. On 1 June, they visit the restaurant where they meet George, the restaurant manager, who shows them around and then takes them to the reception and bookings desk to discuss their event. The couple want to book the restaurant for the evening of 30 June. George gives the couple a Booking Form to sign and on the back of the form are the 'Booking Terms.' These Terms state: 1. Reception Date: 30 June, 6pm to midnight 2. Venue Cost: $15,000 3. Number of Guests: 100 4. Deposit: $3,000 5. Balance payable: 14 June ($12,000) 6. Bookings cannot be amended or cancelled by the Customer without the prior written approval of the Restaurant. 7. The Restaurant reserves the right to cancel bookings or to move booking dates at its discretion. 8. Deposits are non-refundable. The couple sign the Booking Form and pay the deposit of $3,000. On 5 June, Tracey calls George to discuss the wedding reception cake. George says that the restaurant will make one. On 10 June, George calls Tracey and tells her that someone else is interested in booking the venue for 30 June and is willing to pay $20,000. If the couple still want the venue for that date, they must immediately pay another $5,000 or else George will move their booking to 30 July and give 30 June to the other person. Tracey is upset and tells George that this is unfair. George apologises and says, "Sorry but it is all covered by the terms that you signed. Either you want the venue on 30 June, or you do not, tell me now!" Of course, the wedding ceremony will still occur on 30 June at a church, and it would be impossible for the couple to book anywhere else for the reception at such short notice and so Tracey reluctantly agrees. George provides the bank details over the phone and Tracey pays $5,000. On 11 June, George calls Tracey again. He tells her that the couple must pay a Settings Fee (glasses, plates, and cutlery) of $1,000 and the fee for the cake is $500. He says that the couple can pay this when they pay their balance of $12,000 on 14 June. Tracey is shocked to hear about these extra fees but says nothing and hangs up the phone.

On 12 June, due to COVID-19, the government declares restrictions on gatherings and limits any gathering to four people. For wedding ceremonies, this means the couple getting married, the marriage celebrant (or religious figure) and a witness. For the reception, it means the couple and two other guests. On 13 June Tracey calls George and says to him that due to the COVID restrictions, the wedding ceremony has been cancelled and the reception is now obviously not able to be held. She requests the return of the $8,000 that the couple have paid. George says that the reception can still go ahead regardless of whether there are four people attending or one hundred people attending. He says that the reception cannot be cancelled and that the couple need to pay the balance of $12,000 and the Setting Fee and Cake Fee of $1,500. Tracey tells George that they will not pay and that they do not have to pay a Setting Fee and Cake Fee regardless as these should be part of the Venue Cost. She suggests that the reception be postponed to a later date after COVID restrictions ease but George refuses stating that reception can still go ahead, and he is not postponing it. Using the 4-step process and including any relevant cases, answer the four separate questions below. Answer each question as a stand-alone question, i.e., do not base any answers on what you might answer for other questions. For example, answer Question 1 about Duress without considering whether or not the contract is frustrated (Q3).

1.In relation only to the law and cases about IMPLIED terms, discuss whether or not the restaurant is entitled to the Setting Fee and Cake Fee.