MLC101 Law for Commerce Prestige Designs

Fearing that she would not be able to open the bar on time, Susan told her friends from Brisbane to not come and canceled their tickets.  In order to do this, she had to pay a $200.00 cancelation fee for each of the four tickets.  

Susan was, after significant effort, able to find another company to finish the job.  However, she had to pay the new company twice as much money as she had expected to pay Prestige Designs to finish the work on the short time frame – approximately $10,000 rather than the $5,000 the remaining work would have been valued by Prestige Designs.  

The Opening was also significantly less successful than Susan had hoped, earning only a small profit.  Susan suspected that the uncertainty around the completion of the bar contributed to the less than expected turnout.  

The manager of Prestige Designs contacted Susan shortly after the opening, asking to be paid under the contract, claiming that it was not his fault that the work wasn’t done, but rather the fault of the government for preventing his workers from working.  He claimed that Susan had breached the contract by finding another company to do the work, as Prestige Designs would have finished the work when it had a chance to hire new employees, after the start of the new year.

In response, Susan told the Prestige Designs that they would never get a since penny from her, and in fact they should expect to hear from her lawyer.  She then called you.

Advise Susan to whether Prestige Designs has any valid claim for payment under the contract, and if so, on what grounds.

Advise Susan as to whether she can sue Prestige Designs for the money spent on cancellation fees for the flights for her friends.

Assuming that Prestige Designs would be found to be in breach of contract, advise Susan as to what damages she would likely be able to collect, and briefly explain any difficulties she would have in collecting other damages.

ALDO, a major supermarket, is selling ALDO Green Action Flushable Bathroom Cleaning Wipes (50pk) in its current catalogue.

Steve, the managing director of FOOLWORTHS (one of ALDO’s biggest competitors), is worried that these new (and cheaper) flushable cleaning wipes will reduce sales of his competing product, FOOLWORTHS Ultimate Flushable Cleaning Wipes (50pk).

He decides to purchase a packet of ALDO’s brand of wipes that night to test them and see if they really compare. Steve found the wipes to be of great quality. However, as he found himself standing in a pool of water on his bathroom floor, he realised that wipes were, in fact, not flushable.