Jimmy and Elizabeth plan on getting married on the 15th of August. Elizabeth decides that she would prefer to have the reception in her backyard, so she rents an event tent from CELEBRATE Ltd, a firm specializing in event management. The company representative, Mr. Smooth, visits Jimmy and Elizabeth. Mr. Smooth and Elizabeth sign a contract stating that CELEBRATE Ltd will provide an event tent ($5,000) suitable for 100 guests. CELEBRATE agrees to delivery and erection of the tent on the 14th of August and collection of the tent on the 16th of August. On the 10th of August, Elizabeth receives a telephone call from MR. Smooth, informing her that the event tent had been used in Montreal earlier that week and had yet to be returned. In order to obtain it in time for the wedding reception, a special truck would have to be hired, costing $2,500 more than anticipated. Frantic, Elizabeth agrees to pay the extra $2,500. On hearing of the new development, Jimmy telephones Mr. Smooth and says: "You're just trying to get an extra $2500! How dare you!" Elizabeth also has another wedding problem to deal with: On the 14th of August, Elizabeth receives a phone call from Mrs. Bun. The owner of a FROSTING BAKERY. Mrs. Bun made a very special wedding cake for the bride and groom. Mrs. Bun's staff delivered the customized wedding cake that morning as agreed. However, Mrs. Bun phones Elizabeth to complain that Elizabeth has not yet given her the cheque for $500. Elizabeth, who is now worried about the rising costs of the wedding because of the event tent, tells Mrs. Bun: "Too bad! The cake is already here, and I'm only going to pay you $200. I'll mail a cheque today. If you don't agree, then come back and pick up the cake!" Mrs. Bun agrees to accept $200 since the cake is personalized with the bride and groom's names and will go to waste otherwise. What you need to do is to think about these contract situations from every angle. Answer the following questions: 1. What type of contract is occurring in each situation. 2. Explain what each person's point of view is, and what their motivation would be to sue. Mr. Smooth - CELEBRATE Ltd Mrs. Bun - FROSTING BAKERY Elizabeth - Bride Jimmy- Groom 3. If you were the judge what would your final decision be under each situation?