Lara owns a cottage in Littledale which she rents out to holiday-makers.

On 1^st March Lara enters into a contract with Jaxon for Jaxon to rent the cottage from 1^st July to 15^th July. Lara and Jaxon agree that Jaxon will pay 2,000, the entire amount being payable on 15^th July.

On 1^st April, Lara agrees with Theo for Theo to rent the cottage from 1^st August to 15^th August. Lara usually bans dogs from the cottage but on this occasion she agrees that Theo may bring his dog, Gnasher, onto the property and further that she will install a new kennel for Gnasher to use. Theo agrees to pay a total of 2,500 and pays 1,000 immediately with the balance of 1,500 falling due on 15^th August.

On 1^st June, Lara spends 300 on a kennel which she installs in the backyard of the cottage, ready for use by Gnasher in August.

On 1^st July, Jaxon moves into the cottage for his fortnight's holiday. On 8^th July, following several hours of torrential rain, the nearby River Little bursts its banks. The cottage is badly flooded bringing Jaxon's holiday to a premature end. The kennel is also washed away. It will be many months before the cottage can be used again.

Jaxon fails to pay the agreed 2,000 on 15^th July and Theo has demanded the return of his 1,000.

Advise Lara as to her rights and liabilities relating to Jaxon and Theo.