Marcus renovated 'Caldwell Court' for Gary, who had a highly paid job with an investment bank. The agreed price for the renovation was 100,000. Gary's employer was subsequently forced to cease trading and Gary was made redundant. After paying Marcus 30,000, Gary said that he was unable to pay any more at present. Marcus has now received a letter from Joan, Gary's mother, offering Marcus 35,000 in full of satisfaction of her son's remaining debt of 70,000. The letter makes it clear that this is Joan's final offer. A cheque for 35,000 is enclosed.

Marcus is now experiencing financial difficulties himself. He is eager to recover as much money as he can from customers.

Advise Marcus on whether he can recover the money that he believes is owed him by Elsie, Safina, and Gary.

Question 2

Rosie wished to buy a show dog and asked Anthony to sell her Cassandra, which had won the Crufts Dog Show last year. Anthony asked whether Rosie wished to have a look at Cassandra but Rosie replied, "She won the Crufts Dog Show last year - there can't be much wrong with her, can there? I'll give you 500 as agreed". Anthony said nothing.

When Rosie had taken Cassandra home, she noticed that the dog was extremely restless. Rosie took the dog to a veterinary surgeon, Victor. Victor advised Rosie that the dog had been suffering from a nervous disorder for several months. He prescribed a new drug, Braslim, for the dog. The side effects of Braslim were not fully known and practitioners had been advised to warn customers of this. Victor informed Rosie that the drug may have certain side effects, but to keep using it. After a month on Braslim, the dog still had not settled. Cassandra became extremely aggressive and attacked Rosie.

Rosie claims that Anthony misled her by not informing her of the illness and demanded her money back. Rosie also claims that Victor should have warned her of the side effects of the drug, and that he should compensate her for the consequences of his failure to do so.

Discuss whether Rosie can bring an action in misrepresentation against Anthony and/or Victor, and the remedies available.

Question 3

Shabnam bought an old Georgian house, which she decided to convert into a modern discotheque. The opening night was planned for September 1st. On July 15th, Shabnam contactedDJ Charlz, who was the owner of 'Sensational Sounds', and asked DJ Charlz to provide a sound system for the discotheque. She stressed that the system must be installed for the opening night and told DJ Charlz that she expected a near capacity crowd. However, she did not mention that she had arranged a private party for fifty friends and business acquaintances at 25 per ticket to take place immediately before the opening. DJ Charlz agreed to install a suitable system for 10,000.

On August 30th, DJ Charlz telephoned Shabnam and said he had been late returning from his summer holiday in Brazil, due to his flight being delayed. He told Shabnam that he would not be able to install the sound system until September 3rd.

Advise Shabnam whether she can claim damages for the following:

a)Loss of profits on the opening night. Such was the interest from the public that she could have filled the discotheque twice over;

b)Loss of profits on the pre-opening private party;

c)Damages for the emotional distress she claims to have suffered as a result of DJ Charlz's failure to perform the contract on time.