Workshop problem that I don't understand-

Barry Barnet has made millions from his chain of hair replacement clinics. He fancies himself as an art connoisseur and has accumulated a significant number of art works over many years. After his young son is diagnosed with an abnormal heart murmur, Barry decides to hold a charity art auction of some of those works to raise money for research into heart conditions. Barry is known for his catering flair, and this event promises those who attend a champagne lunch at Barry's Onetangi homestead on Waiheke.

In January Barry compiles an emailing list, primarily of close friends and a few associates. He sends the following invitation to those on the list -

A champagne catered charity art auction, at my place on Waiheke, Saturday 21 March. Please register your intention to attend by 14 March.I am going to charge a small fee for registration. I know you won't mind contributing to such a worthy cause.I am sure too that those of you who cannot attend will contribute anyway.Looking forward to seeing you there.

The invitation also includes the following statement -

I have set up a website which provides photographs of, and information on, all the works that will be available for sale on the day, including some ball park indications of price which I hope the works will go for.Nonetheless all works will be auctioned without reserve.

He sends out the email together with the bank details for the 'BB Charity Auction Trust Account' (the Trust Account) he has set up to receive the registration fees and other payments. The following day he notices one of the emails to a colleague, Bruce, has not been delivered.Barry realises there was an error in Bruce's email address, so he emails the invitation individually to him.

On 28 February the first case of COVID-19 is detected in New Zealand. By 13 March Barry is convinced that the country will be going into lockdown fairly soon.He wants to avoid any possible issues and decides to move the auction to an on-line event. Using the original mailing list, later that day he sends out notification of the changed "venue" arrangements and announces that the on-line auction will be held on the evening of Friday 20 March commencing at 7.00pm.

The morning of the auction, Kanoa a close friend of Barry who is tied up with work commitments in the evenings, rings Barry and says, "Sorry I can't make the auction tonight. It is such a shame because I have my heart set on the "Lona Miso".I am prepared to pay $15,000 for it if it doesn't reach that at the auction." Barry says, "OK let's see how it goes".

The "Lona Miso" is a painting of a single bowl of the traditional Japanese broth; an early work by well-known pop artist Sandy Warthog.It is a work that is very close to Barry's heart and he would like it to go to someone who he knows. Having thought about it, at 2.00pm he emails Kanoa saying, "I do know how much you love that painting. Because you are such a good friend and because I don't think it will go for any more at the auction, it is yours for $15,000."

Thrilled, Kanoa emails Barry straight away saying, "Fantastic!" Barry is too tied up with prep for the evening's event and doesn't see Kanoa's email.

That evening the auction starts as planned at 7.00pm and many pieces exceed their estimated prices. When it is time for the "Lona Miso" to be put up for sale, and in the excitement of the occasion, Barry forgets about his earlier communications with Kanoa. The painting surprisingly sells for $25,000. Barry is elated.

Because of the very competitive bidding, it takes far longer than anticipated to get through the lots.After 11.00pm there is very little interest in the last two works and Jen is the sole bidder on the last piece. Her bid is well below the price indication on the website. Barry believes the piece is worth much more and he refuses to sell.

Bruce registers and pays his fee on 14 March. He never received the email advising the change of "venue" (note email address error above) and travels by ferry to Waiheke on Saturday 21^st.He has heart set on obtaining the "Lona Miso" and is prepared to pay up to $30,000.

In anticipation of a well catered lunch, Scrooge registers early and pays a $20 donation.When he learns the auction is to be on-line, he is not interested in taking part and emails Barry asking for his $20 back.

Li, a successful bidder for one of the works at $5,000, is informed by his employer the day after the auction that because of Covid-19 he has lost his job.Payment to Barry is due in 14 days. Li knows he has paid significantly above Barry's indicative price; he was happy to do so because the proceeds are going to a well deserving charity. He contacts Barry that same day and says, "I have lost my job, I can't pay the $5000 I bid. Will you take the indicative price of $3,000".Barry agrees.Li transfers the $3,000 into the Trust Account there and then.

Following the auction -

Kanoa is devastated that the "Lona Miso" isn't going to be hers as promised;

Jen is adamant that she should be able to purchase the last work for the price she bid;

Bruce is dismayed when he learns the auction has already taken place - and that he has missed out on the "Lona Miso";

Scrooge thinks he is entitled to have his registration fee returned;

Barry is considering trying to recover an additional $2,000 from Li.

REQUIRED:

With reference to the authorities, examine fully the respective legal positions of Kanoa, Jen, Bruce, Scrooge and Barry and assess the likely success of any claims they might bring.