Business Law Essay
Question
After years of saving money, Rebecca opened her own bakery which specialises in beautifully decorated cupcakes which she planned to sell for $5 each. The official opening was going to be on Wednesday, but on Tuesday, when visiting her mother in the nearby town, she ran into her friend Lucy who just opened her own hairdressing salon. While they were chatting about their new businesses, Lucy mentioned that she was planning to attend the opening of Rebecca’s bakery. Rebecca said to Lucy – ‘Great! I will give you a box of cupcakes for free’. Lucy was really happy and said – ‘Thank you! I love cupcakes! I am running a promotion to advertise my new salon so here are two vouchers for free haircuts at my new salon. Enjoy!’
On her way back from her mother’s place, Rebecca ran into her cousin Jack who owed her $500. She was relieved to see him as she urgently needed the money he owed her to help pay for all the expenses associated with opening the new bakery. She said – ‘Jack, if you pay me back the $500 you owe me, I will give you a box of cupcakes when you come to the bakery opening tomorrow.’ Jack grudgingly replied – ‘Thank you for the offer’.
On the bus ride home, Rebecca sat next to a young lady named Steph. They started to chat and Rebecca soon found out that Steph worked as a food critic working for the local newspaper. Before leaving the bus, Rebecca said to Steph – ‘Please come to the opening of my new bakery. I want to make sure that this is the biggest event in our little town and everyone is writing about it! I will give you a box of my cupcakes.’ Steph replied – Great! I will be sure to do that.’
The following day, the bakery opening was an amazing success. It seems everyone in town turned up to support Rebecca and it wasn’t long before she ran out of cupcakes. To make matters worse, Rebecca soon spotted her cousin Jack amongst the crowds. Remembering their chat from the day before, Jack looked very angry when Rebecca told him that she would not be able to give him any cupcakes.
Then, fearing that her friend Lucy would also be angry about the cupcake shortage, Rebecca called Lucy’s mobile and left a message saying – ‘Hi Lucy. Due to the large number of guests at the opening, I’ve run out of cupcakes! So sorry, but I won’t be able to give you that box of cupcakes after all!’
Later that night, an exhausted Steph finally arrived at the bakery. Upon seeing Rebecca, Steph said – ‘Congratulations on the new bakery! My bus trip down here took over an hour and I’m exhausted, but seeing your gorgeous bakery has made it worth it!’. Rebecca responded – ‘Thank you for coming all this way, but due to the large turnout, I ran out of cupcakes and will not be able to give you a box as promised.’
With reference to legal rules and supporting cases we studied this term, analyse whether there is a valid contract between: (a) Rebecca and Lucy; (6 marks); (b) Rebecca and Jack (7 marks); and finally, Rebecca and Steph (7 marks)
HINT: Your answer should demonstrate your ability to analyse the facts in the question. Refer to the sample essay on Moodle if you are unsure how to structure your essay.