Jack iack is a world-renowned professionai product designer. Last year Jack Jack competed in a few of the Australian Product Designers Competitions and Awards Convention and was the winner of three highly coveted Product Designers' Award. On returning from a recent international competition, Jack Jack decided to leave behind the world of product designs and embark on a new challenge by opening a state of the art interior designer studio where Jack Jack run \"interior designer classes\" for designer enthusiasts members. He will run this himselfand handie all the classes. He will limit the membership to 20 members as this is the maximum he feeis he can accommodate and handle and he also to create a sense of exclusivity about the studio. In July 2022, JackJack explained his business plan and proposed lease and materials purchases to Ji|| Jill. Jill Jill owns a property in Victoria that he is looking to lease out. In August 2022, Jack Jack enters into a lease agreement with Jill Jill for the property. The lease provides that: 1. The lease will commence on 1 January 2023. Jack Jack will get prior access to proceed with works of fit out on the property and commence business. 2. Jack Jack will pay lease payments of $50,000 per annum to Jill Jill in equal monthly instalments of $4166.66 per month. The rent includes all utilities and maintenance works and upkeeps by Jill Jill. 3. The term of the lease is for 2 years with an option for Jack Jack to renew the lease for a further 3-year term if he wishes to do so. As Jack Jack has secured a space for the design studio, he purchased 10 state-of-the-art drawing tables at a cost of $5,000 each [$50,000 total}. He stores the tables in his garage at home. Jack Jack also sets about marketing the studio and he believes that he has good prospects of selling all 20 memberships for $5,000 per year very soon after he opens for business. Jack Jack anticipates that if annual membership income is $100,000 and rent is $70,000 including running costs, than his profit (which he will take as wages) will be $30,000 per year. Page 1 At the end of December 2022, the demand for rental properties in Victoria skyrockets due to the construction of new apartments and a supermarket in the area. Jill Jill realises that she is now able to secure a tenant who is willing to pay $100,000 per annum for the property for a period of 5 years. On 25 December 2022, Jill Jill signs a lease with Whatsup Ltd who promptly moves into the premises the next day. Jill Jill quickly writes to Jack Jack on 26 December 2022 and informs him that the lease is off as she has secured a tenant who is willing to pay more. Jack Jack was devastated when he receives the letter from Jill Jill and immediately calls her. Jack Jack says: "This is unbelievable and unacceptable. We had a signed lease and now you are not willing to honour it five days before I am due to move in? I have purchased my tables and I also have a designer showcase contract with Wow Designs Ltd who will pay me $50,000 per yearto running showcase events."JillJi|l laughs and says: "So what if i have breached the contract. Welcome to the world of business!\" Jack Jack had no choice and hurried to find another rental property at an affordable price. Unfortunately, to his dismay and frustration, he is unable to do so with all the rents in Victoria skyrocketing. Any decent rentals in the next few years are bleak. Given Jack Jack's high profile in the Australian design community, the collapse of his design studio venture makes headline news and his reputation is in rumbles. The designer showcase contract does not eventuate. Jack Jack has to sell the stateof~art drawing tables which he bought but he was only able to sell them for $2,000 each {$20,000}. Jack Jack then develops depression because of the situation and seeks treatment from Dr Hamson. Dr Hamson tells Jack Jack that his symptoms are a direct result from the collapse of the business. Dr Hamson prescribes Jack Jack medication costing $5,000 and tells him to take some time to relax and go on an overseas holiday. Jack books a cruise with Rest Up Cruises costing $20,000. Using ILAC, with reference to the law and case law, advise Jack Jack on the damages, especially on what losses he will be able to recover from Jill Jill at common law. [40 marks) - END OF PAPER - Page 2