Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rebecca has also entered into a contract with Trending Now Pty Ltd (Trending Now) a marketing company. The terms of the contract to which she

  1. Rebecca has also entered into a contract with Trending Now Pty Ltd (Trending Now) a marketing company. The terms of the contract to which she agreed were that in return for the payment of $75,000:
    1. her work would be showcased together with that of other designers in a travelling design and fashion expo, complete within 3 months
    2. Trending Now would run the expo for a two week period in all capital cities, mount a multimedia and social media campaign and sell her jewellery on consignment and take orders on her behalf.

The firm had previously advised her that such exposure should conservatively attract approximately $200,000 in business and would increase her public profile.

Rebecca now reveals that after one successful show in Perth from which she received $20,000, Trending Now has stopped operating.No more showcases have taken place and no advertising outside Perth. Rebecca thinks there has been a breach of contract and cannot afford to lose the $75,000 she has paid. She knows some of the other designers are talking of suing, but she wonders if it is a commercially sound idea.

Part A

  1. Advise Rebecca of the matters to be considered in bringing a commercially successful breach of contract action.
  2. Has a condition or warranty been breached? Explain thoroughly.
  3. If the fundamental term of the contract is breached has a condition or warranty been breached?
  4. Her work has been showcased in perth so there has been partial performance? Explain

Part B

  1. If the court decided to award Rebecca damages, what matters would the court take into consideration in assessing the amount she should be awarded?
  2. The potential remedies will be determined with reference to whether they have breached a condition or a warranty of the contract. Please discuss the remedy to Rebecca if the Trending Now breached a condition and the remedy if Trending Now breached a warranty.
  3. There has also been partial performance (quantam meruit)so the amount of damages would be reduced to account for this.
  4. Note that the courts may not award her the full expected earnings in damages as this was not guaranteed, unless she could prove negligent misstatement. explain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Steven M Glover, Douglas F Prawitt

4th Edition

0132423502, 978-0132423502

More Books

Students also viewed these Law questions

Question

Solve the equation | 2x 1 | | x + 5 | = 3.

Answered: 1 week ago