Without asking Billy, Sasha orders some very rare (and expensive) orchids from Ooh Orchids believing that she would be able to sell them, however, Billy says he never would have agreed to this if he had been asked. Ooh Orchids has demanded payment of the outstanding invoice of $1,500 from Billy.
While delivering some flowers the delivery driver gets caught in heavy traffic. Under pressure from Billy to get the flowers delivered on time to “a very important customer”, Jacob is speeding and crashes into a car stopped at a roundabout. Nobody is injured and the flower van is protected by a bar at the front, however, there is $5,000 of damage caused to the other driver’s car.
Without consulting Sasha, Billy started a separate business selling flowers specifically for weddings. So far Fusion Flowers haven’t been supplying flowers to events as it would increase their insurance costs, however, Billy and Sasha have previously discussed the lucrative nature of supplying the weddingindustry
Discuss Billy’s potential liability. Support your response with relevant case authorities.
Advise Wassim whether the three elements for formation of contract are established. Ensure your response is supported by relevant case authorities.
(i) Describe and classify four terms from the contract as either a condition, warranty or intermediate term, explaining why you believe each term would be classified this way. Your responses MUST be supported with relevant case authorities.
(ii) What impact does the classification of a term as a condition, warranty or intermediate term have on the remedies available?
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