Layla owns a catering business, 'Layla's Events'. She has a large wedding planned for the Saturday of that week. On Monday she enters into an agreement with 'Fresh Fish' a local speciality seafood provider. Fresh Fish will deliver 150 oysters for the wedding banquet on the Friday of that week, one day before the wedding. Fresh Fish tells Layla that there is a shortage of oysters and it will be a challenge for them to get 150. Layla reminds Fresh Fish how important it is that she receives the oysters. She points out to Fresh Fish that their agreement also states clearly 'if Fresh Fish fails or delays to deliver the agreed 150 oysters Fresh Fish will pay compensation to the amount of 1,500 to Layla's Events within 14 days of the date of delivery'. Fresh Fish query this amount of money and tell Layla that the market value for the oysters is 400. On hearing this, Layla pays Fresh Fish 400 for the order. On Tuesday of that week Fresh Fish contacts Layla to advise that they cannot deliver the oysters. Layla is furious and spends the rest of the week researching on the internet how to seek compensation of 400 for the failed delivery.

On Saturday Layla goes ahead with the wedding apologising for the lack of oysters on the menu.

(i) Layla wants to take legal action against Fresh Fish because they failed to deliver the oysters. Explain, with reference to case law where necessary whether Layla can take a legal action against Fresh Fish for the 400. (3 marks)

(ii) Fresh Fish believe that Layla could have 'made some effort' and that the oysters could have been purchased from 'Nemo's Provisions' for 400.00. Layla rejects the suggestion stating that Nemo's Provisions is 80 miles away from her business offices. Explain whether the availability of the oysters at Nemo's will result in the failure of any legal action against Fresh Fish. (2 marks)

(iii) Layla wishes to rely on the clause that she inserted into the agreement with Fresh Fish and claim the 1,500.00 in damages. Explain, with reference to case law where necessary whether Layla will be successful in claiming the 1,500.00.