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In January 2022, six months ago, Natasha arranged a week-long art exhibition to take place in June 2022 at the Greater East Hotel. She engaged
In January 2022, six months ago, Natasha arranged a week-long art exhibition to take place in June 2022 at the Greater East Hotel. She engaged a number of up-and-coming artists to exhibit their work, including Janet, who agreed to exhibit ten paintings for a total fee of ZMW 5,000. Natasha entered a contract with the Greater East Hotel, to hire ten rooms for the exhibition. She told Greater East Hotel, the purpose of the hire, and explained that she needed one large room where performance art could take place, as she planned to film performances and sell the film. Natasha also entered into a contract with Chewe, to provide catering for the exhibition. A month before the exhibition, Janet had become very famous. Natasha realised that she would need extra security for the exhibition and contacted Zambia Police, who agreed to patrol as normal, but Natasha said that she wanted ten armed police officers at the exhibition, to create some publicity. Zambia Police agreed to provide them for ZMW 5,000. A week before the exhibition, Janet told Natasha that she was now too famous to do exhibitions for only ZMW 5,000. Janet said that unless Natasha agreed to pay her an extra ZMW 15,000, Janet would not exhibit her art and would destroy Natasha's reputation. Natasha felt she had no choice but to agree to pay Janet. Unfortunately, the Greater East Hotel was only able to provide sever jooms for the exhibition, none of which were large enough for the performance art. Natasha hed expected to take ZMW 100,000 in fees from visitors, but as a result of the lack of rooms, she only took ZMW 70,000 . She also missed out on selling ZMW 20,000 worth of TV rights for the performance art. Because of the lack of rooms, Natasha decided not to provide catering, and she cancelled Chevis at the last minute. Chewe had to donate a crate of salmon sandwiches to charity, as they co:ald not be reused anywhere else. Chewe had spent ZMW 3,000 preparing these. Chewe has no idea whether it would have made any profit from the contract, if Natasha had not cancelled it. Following the event, Natasha has received invoices from Janet for ZMW20,000, from Chewe for ZMW 3,500 and from Zambia Police for ZMW 5,000. Natasha is reluctant to pay the invoice as she believes that the ZMW 20,000 is too much as she only accepted because she was under pressure for the exhibition to proceed. She also believes she does not owe Chewe or Zambia Police any amount as she cancelled the contract with Chewe and she is aware that Zambia Police is legally required to provide services for free. Natasha heard that you had a distinction in Business Law and she has invited you for advice. Required: With the aid of appropriate legal principles explain to Natasha: (a) what damages are and the extent of damages Natasha can claim from Greater East Hotel as a result of its failure to provide ten rooms; (6 marks) (b) whether Natasha is liable to pay Janet ZMW 20,000; (6 marks)
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