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Unformatted text preview: PART A
Ada negotiated the catering contract with Bonnie, the sole-proprietor of Bonbons. Midway through the negotiations, Bonnie had to go overseas for an important Food Exotica
Convention. Bonnie informed Ada of her impending departure and assured her that her
right-hand man, Clyde, would take great care of Ada. At $50 per head, Bonbons would
not provide a free flow of the best champagne. However Clyde, exhausted by Ada’s
vigourous haggling, agreed. Bonnie was very angry when she heard about this as she
had specifically instructed Clyde not to agree to Ada’s insistence on including a free
flow of the best champagne at that price. This would result in a significant reduction of
her profit margin! Clyde, her stepbrother, helped her from time to time in her business
whenever she urgently needed a stand-in. He was not her employee. Bonnie now
wonders if Clyde is deliberately out to sabotage her business.
Advise Bonnie as to:
(i) whether she is liable to honour the contract with Ada; AND (10%) (ii) whether she has any recourse/right to claim against Clyde. (10%) PART...
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- Spring '14