Lynda lives in Melbourne, and is a world-famous painter. Her paintings are displayed at exhibitions all around the world, and are very popular with art collectors. Lynda enters into a contract with Taylor, who runs an art gallery. The contract requires Taylor to display Lyndas paintings in her gallery, and to sell them on Lyndas behalf. Taylor receives a commission for each painting sold, and Lynda receives the rest of the sale proceeds. The contract requires Taylor to display at least two of Lyndas paintings in her gallerys front window at all times. Unfortunately, when renovations lead to a shortage of space in Taylors gallery, Lyndas paintings are displayed on an inside wall of the gallery instead, for six weeks in a row. Lynda tells Taylor that she is terminating the contract, but Taylor insists that their contract should continue. Lynda is concerned that she has lost sales as a result of her paintings not having a prominent place in Taylors front window. As a world-famous artist, with an international reputation to protect, she is feeling very distraught and deeply disappointed.

(a) Can Lynda terminate the contract? (2 marks)

(b) Assume Lynda has lost sales as a result of Taylors breach of contract. Is Lynda entitled to recover damages for her lost profits, and for her distress and hurt feelings? (5 marks)