Loos at the following scenario. You will need to:

1. Classify three terms correctly and support your answer with legal authority. You must refer to at least two case authorities to receive full marks. (7 marks)

2. Clearly describe the consequences of classifying terms, i.e., if there is a breach of the term what are the consequence. This must be supported by at least one case authority to receive full marks. (3 marks)

On Friday, 1 April, Terry visits "Andrew's Coffee Supplies" to look at a new Coffee Machine. She is met by Django who asks if he can help.

Terry says she is very interested in purchasing a Coffee Machine which must have the 4 group heads and have 9 bar pump pressure for delivering quick and strong brews.

Django shows her a bright pink "Andrew Speedracer" model and says it has 4 group heads and delivers coffee with 9 bar pump of pressure. Terry asks if there are any other colours besides bright pink. Django explains they can order in and deliver a black and silver model to Terry on the following Friday (September 2).

Terry further explains she needs it by September 2 as she has booked a special function on the weekend for 100 guests serving coffee and dessert.

Django tells her that the price, which includes a 100 kg of "Andrew's Premium blend coffee", is $5,000.

Django confirms the new black and silver Andrew Speedracer, and the coffee will be boxed up and delivered to her business address on Friday September 2 ready for her weekend event. Django adds that "this model is the most powerful coffee machine ever made".

On hearing this from Django, Terry agrees to buy the black and silver Andrew Speedracer (along with the coffee). She makes full payment of $5,000 and provides her address for delivery.

On Friday April 8, Terry is waiting at her business for the delivery which arrives at 4:55pm. Terry opens the box and notices that the machine does not have 9 bar pressure but the inferior 15 bar pressure - the same pressure seen on home coffee machines. She decides to continue with the event and finds one of the group heads is not working, the pressure is not strong enough to deliver consistent coffee. As she has used many different Coffee Machines, she does not believe this one to be a 'most powerful coffee machine ever made'.