Rafael entered into a building contract with Morgan under which Rafael agreed to construct a patio on Morgan's lot for $50,000. Red Bricks Supply Company supplied the bricks for Morgan's patio at Elizabeth's request. Rafael did not pay Red Bricks before Red Bricks delivered the bricks. Rafael failed to pay for the bricks within a few weeks after it was supplied. The debt was $5,000.

A) Advise the company Red Bricks of its position as a creditor including how they can attempt to get their $5,000. (4 marks)

B) Morgan has not paid Rafael the cost of constructing the patio ($50,000) as the payment due date is a month from now. Please advise Morgan of her obligations (if any) in relation to Red Bricks Supply Company. (3 marks)

Maria was looking for a supplier of juice boxes for her daycare. Tropica Juice agreed to supply 100 small juice boxes of concentrated orange juice to the Maria's daycare, with delivery no later than October 31st. The cost of the 100 small juice boxes of concentrated orange juice is $100. On October 30th, Tropica Juice delivered 100 medium juice boxes to Maria's daycare. Tropica Juice provided an invoice of $120.

On November 1, Maria reviewed the catalogue of a local toy store and phoned to order fifteen (15) dolls at a cost of $15 each. Maria paid for the dolls by credit card. The dolls were ready to be shipped immediately. Maria told the store to ship on November 3 because she was still cleaning up the daycare centre and did not have anywhere to put the dolls. On November 2, an arsonist broke into the toy store and set the store on fire. The dolls were destroyed.

Assume that insurance does not apply in any way.

A) On November 3, Maria called the toy store to demand a refund. The manager at the toy store refused and said: "the dolls belonged to you. Not my problem." Advise Maria of her rights (if any). (3 marks)

B) The toy store decided to find a temporary location after the fire. The local general Store was willing to let the toy store sublet one of its' store locations. Unfortunately, three months after moving into the temporary store location, the toy store was unable to pay rent to the landlord. Explain the liability of the general store (if any) and why. (2 marks)