PROBLEM SCENARIO: George and Anita are friends and agree to go into a fast-food business together. Although they start the business and share responsibilities for
PROBLEM SCENARIO: George and Anita are friends and agree to go into a fast-food business together. Although they start the business and share responsibilities for the business, they do not put anything in writing. George's uncle Bob, who is a solicitor, wants them to prepare a deed of partnership setting out each party's rights and obligations. However, because of Anita's unwillingness to sign any legal paper, such a written agreement has not come into existence. The fast-food business is very successful. Anita receives 50% prot of the business in exchange of her contributions to the business. To encourage the staff to work harder, George sends a signed letter to all staff saying, \"any employee who introduces 3 new clients by the end of January will be given a week holiday in Fiji paid for by me'. Anita's brother, Bart works in the business as a cook and although he receives a copy of George's letter, he is too busy to read it and put it away. Before the end of January, Bart introduces 3 family friends as new clients. Later, he reads George's letter and asks for the holiday. However, George refuses due to cashflow problems during the COVlD-19 pandemic. As time passes George and Anita begin to argue over who should run the business. Eventually, after a year together, Anita storms out of the shop after a particularly violent argument with George. As she is leaving, she tells George that not only will she not be back, but that she is going to lease a shop down the road and set up a rival business and put him out of business. Anita's new business does very well and in a short time the former business begins to suffer large losses. Answer the following questions by referring to relevant legal principles and case laws: (a) Explain whether Bart is legally entitled to the holiday under the contract law. (8 Marks) (b) Explain whether there is a contract between George and Anita in relation to the fast-food business? (7 Marks}
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