PROBLEM – CLARE’S BUSINESS
Clare is a successful IT consultant who is about to launch a new business, Robotics, that specialises in the sale and supply of ‘intelligent industrial robots’ to the manufacturing sector. She hires a stand at the prestigious World Industrial Technology Exhibition (WITE), London, in order to demonstrate the range and capabilities of these robots.
UShow contracts with Clare to erect her exhibition stand for £10,000.
Moreover, Tekkies Weekly, a new London-based magazine that is seeking to raise its profile amongst the business community, agrees to advertise the presence of Robotic’s exhibition stand for no charge.
Clare is determined that her WITE exhibition stand projects the right image, so she pays UShow an extra £2,000 to make sure ‘ it had WOW factor’. In addition she promises to pay £1,000 to Standover, a company employed by WITE to provide security for the exhibition, if its employees can keep a ‘watch’ on her stand.
The Robotics stand is a great success but Clare refuses to pay UShow the extra £2,000 nor Standover its £1,000. Tekkies Weekly is being pursued by some creditors so Clare promises to pay it £3,000 for the advertising of her exhibition stand. However, she later withdraws her promise to Tekkies Weekly after looking at the balance of her bank statement (which is alarmingly low), despite Tekkies Weekly having already incurred additional costs in anticipation of receiving that money.
DISCUSS the legal position of all the parties involved.