Violet entered into a contract with Cheap but Good Printers Pte Ltd ("CBG") to design and print 1000 A2 posters mounted on foam board to advertise her company's new juice cleanse kits. In the contract, Violet agreed to pay CBG $2500.00 for the 1000 A2 posters. CBG did not have its own designers so outsourced the design work to Rose, a freelance graphic designer, to prepare the photography and layout work for the poster. Rose was to be paid $1000 for the design. After 3 meetings with CBG and Rose, Violet was satisfied with the layout of the posters and confirmed the design for printing purposes.

Shortly after she had confirmed the design with CBG, Violet met her old school mate Pansy. Pansy had started her own design and advertising business. When Violet shared about her company's upcoming promotion for its new juice cleanse kits, Pansy excitedly told her that she could help design and create the advertising materials. Pansy was surprised to hear that CBG was charging Violet $2,500.00 for the 1000 posters. She told Violet that the price was too expensive and that she could do the work for half the price.

Violet immediately called CBG to cancel the entire order of the 1000 posters.

CBG was unhappy at the turn of events and sought your advice on the following:

(a) The different ways a contract could be ended.

(10 marks)

(b) Discuss the LEGAL PRINCIPLES concerning the above case study, APPLY the legal principles, and CONCLUDE on whether CBG could treat the contract with Violet as discharged and recover the amount of $2500, in particular since Rose was asking to be paid.(35 marks)