There is an international food festival held in Canberra during March each year.

Question

There is an international food festival held in Canberra during March each year. Individuals and companies can hire stalls and sell food and drink to the public. ^ Pranav cooks excellent Indian food and decides to hire a stall to support the cost of his studies. Pranav speaks to Fiona, Festival Manager, to get more information about sales. Fiona tells him, "Here are the sales figures, but don't worry about reading this document, I guarantee that you will make at least $2000 a day in profit". Pranav signs the contract for a stall. Unfortunately, Pranav only makes a $100 profit on the first two days. He wants to quit the festival, get a refund, and focus on his university studies.4 Support your advice by reference to legislation and cases. Do not consider any rights or remedies that may apply under sale of goods or consumer protection law. Questions should be answered in IRAC style. Support your propositions by reference to cases and statutes where appropriate. I- Issue (briefly identify the legal issue(s) irn the problem. R - Rule (briefly signal the rule or relevant law which will help to resolve the issue.) A - Application - the most important part (apply the law to the facts, look at both sides to the argument, support your argument.) C - Conclusiorn (remember to draw your advice to a conclusion, although that advice might be that there is more than one possible answer, but the most likely conclusion is x. It is also acceptable to say that you need to know some further facts and if it is x then y would follow but if it is a then b would follow.) Discuss remedies where appropriate.^

Explanation / Answer

Looking at the condition as mentioned Pranav must have made the profit of $2000 at least in a day. But he made only $100 in 2 days. Following is the elaboration as required:-

Issue:- Pranav made only $100 in 2 days, meaning $ 50 in a day, although as promised he was supposed to make $2000 profit in a day.

Rule: There is no rule to be applied, as it was a guarantee mentioned verbally, there was nothing innwrittin, hence no rule is applicable to both bthe parties. i.e. Pranav and Fiona.

Application:- Pranav is luck enough to get a refund, although after signing a contract another party is not liable to pay the loss or the amount paid to book the stall. In ahort, even after getting the refund he made a profit of $100. Further he must focus on his studies.

Conclusion: Pranav did good and earned some money, may be he was over promised by Fiona. Althiugh being lucky enough, he got his refund.

Further he should take a lesson that a verbal gurantee is OK, but things are supposed to be documented

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