Question
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
- 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:
- her work would be showcased together with that of other designers in a travelling design and fashion expo, complete within 3 months
- 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
- Advise Rebecca of the matters to be considered in bringing a commercially successful breach of contract action.
- Has a condition or warranty been breached? Explain thoroughly.
- If the fundamental term of the contract is breached has a condition or warranty been breached?
- Her work has been showcased in perth so there has been partial performance? Explain
Part B
- If the court decided to award Rebecca damages, what matters would the court take into consideration in assessing the amount she should be awarded?
- 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.
- There has also been partial performance (quantam meruit)so the amount of damages would be reduced to account for this.
- 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
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