Question

Please tell Annette and Becky their respective legal positions based on the cases presented in the Contract Law analysis. Then make your suggestion and provide three similar cases or examples to elaborate on.

Annette owned a shop selling antique goods. This required her to attend a number of auctions per year. When Annette went to these auctions her best friend Becky ran the shop. Annette instructed Becky, that she could sell any of the items displayed in the shop as long as Annette got at least seventy five percent of the price displayed on the item. Becky was warned that under no circumstances must she purchase any stock for the shop.

While Annette was away at an auction, Becky sold Chris an antique clock for seventy percent of the price displayed. Chris bought the clock believing that Becky owned the shop.

Becky also sold Diana, a regular customer and good friend of Annette's, a bedside cabinet for sixty five percent of the displayed price. Diana was aware that Annette would not sell for lower than seventy five percent of the marked price, even to a trader such as herself.

Becky also purchased a number of items of jewellery from a collection shown to her by Eddie, for 350. Becky believed this deal to be a bargain, one that she felt Annette would not want to let slip by.

On Annette's return, she discovered that the jewellery pieces were very rare and in fact worth 3000. Eddie, also having heard that the jewellery items were worth much more, returned to the shop and insisted that the items be returned because he was unaware that Becky did not own the shop, and thus had no right to buy them. However, Annette refused to give the items back, arguing that the contract was valid.

Advise Annette and Becky of their legal positions.Please analyze the cases provided in accordance with the contract law, then give your suggestion and provide three similar cases or examples to elaborate.