Question: Answer All Three Questions ( Total 4 0 Marks ) Scenario:Tan and Lee wish to get married in June. They look for a nice venue

Answer All Three Questions(Total 40 Marks)Scenario:Tan and Lee wish to get married in June. They look for a nice venue to hold the wedding reception, but all the popular venues seem to be booked.Their friend Sal had booked a wedding venue, the Royal Gala Estate (Royal), for her own upcoming wedding, also in June. She had booked the venue a year ago. However, Sal had decided that she no longer wanted to get married and so she contacted Tan and Lee and told them:- She no longer wanted to use the venue;- She had booked a year ago;- The usual price for the venue was $20,000.00 but because she had booked early, Royal said they would give her a 5% discount;- Sal had not paid any money yet because the total price was payable only on at the end of the event;- The $20,000.00 did not include any catering, this was extra;- Royal were happy to let Tan and Lee use the venue instead of Sal.Tan and Lee contacted Royal and confirmed that they would use the venue instead of Sal. They arranged for catering along with all the other usual wedding preparations.Tan and Lee also wanted an amazing wedding cake for the special day. They planned on entering the cake into the local annual wedding cake competition where the best cake of the year was awarded a prize of $2,000. They negotiated with Marcel, the owner of luxury cake maker Tiers of Joy to make a wonderful cake costing $1,000. It was truly magnificent, and they told Marcel that they would enter it into the local competition. Marcel was to deliver the cake to the venue at the start of the reception so that all the guests could appreciate the grand arrival of the cake!On the day of the wedding and reception, all was going to plan however Marcel phoned Tan and Lee to tell them that unfortunately, the delivery truck, loaded with the cake had just been stolen from the bakery! Marcel said that since this was something outside of his control that the contract had been frustrated and of course he would refund them the $1,000. This was all he could do. Tan and Lee were very upset, and they told Marcel that they did not agree with his view and that they would sue him for this.Tan and Lee arranged for their friend Sal, who was attending the wedding of course, to find any decent wedding cake in a hurry. The only cake Sal could find was a display cake from local bakery Piece of Cake. It was not glamorous at all and because Piece of Cake could see that Sal was desperate, they charged $1,200.00 for the cake.Tan and Lee were going to give pieces of the wedding cake in special packages as a gift to each guest. They did not want to do this with the replacement cake and so they asked Sal to also quickly find 100 small gifts to give to the guests. Sal managed to find 100 lovely wedding cake keyrings for $1,000.Sal returned with the cake and gifts and the day was saved but it was not an amazing cake. Tan and Lee were extremely upset and disappointed about it.At the end of the event, Royal presented Tan and Lee with the bill. They had charged $20,000 for the venue hire and had not applied the discount if 5%. They also had charged a $2,000 fee for the use of the tables and chairs in the venue.Tan and Lee questioned these as they believed they were entitled to the 5% discount and that tables and chairs should obviously be included in the venue hire. Royal disagreed. Question 110 MarksWith reference to law and precedent cases ONLY about implied terms, advise Tan and Lee as to whether or not they were entitled to the 5% discount and whether or not they must pay for the tables and chairs?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!