Question
Mo is the owner of a small boutique hotel in Devon. She wants to build a terrace where the guests can sit and admire the
Mo is the owner of a small boutique hotel in Devon. She wants to build a terrace where the guests can sit and admire the view. In March, she contracts with a local building company, "Build It Ltd" and under the contract "Build It Ltd" will construct the terrace by 1 June, in time for the summer season, at a total cost of 80,000. It is agreed that the terrace will be five meters wide and 10 meters long.
Mo decides to replace all of the bed linen in the hotel and in April she orders from "Hotel Linens" 30 sets of Egyptian cotton bed linen for a total price of 4000. It is agreed that the bed linen will be delivered by 1 May.
To promote the hotel, Mo contacts an advertising agency, "Best Hotels Ltd". "Best Hotels Ltd" agrees to advertise Mo's hotel for six months, with the first advert appearing on "Best Hotel Ltd's" website in May, for a total fee of 500. Mo spends 1500 on photographs of her hotel that she wants to appear alongside the advert.
On 30 April, "Best Hotels Ltd" informs Mo that due to system error, they have taken too many advertising contracts and as such, they will not be able to advertise her hotel. Mo is unable to find another advertising agency.
On 1 May "Hotel Linens" informs Mo that they have run out of bed linen and that they will not be able to fulfil her order. After spending two days on finding another seller, Mo orders 30 sets of Egyptian Cotton bed linen for a total price of 5000 from "Cotton is Us". This is the lowest price that Mo can find.
On 1 June, "Build It Ltd" completes the construction of the terrace but although it is 5 meters wide, instead of 10, it is only 9 meters long. Mo wants "Build It Ltd" to rebuild it to the agreed specifications. "Build It Ltd" refuses, on the basis that it will cost 90,000 to rebuild the terrace.
Advise Mo of her rights under each of the above contracts.
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