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Explain the difference between an Agreement and a Contract. (1 mark) PART TWO OFFER AND ACCEPTANCE 20 MARKS Question One Derek decided to organise a surprise birthday party for his partner Amanda. He contacted Bubble and Squeak Cuisine who advised that they could provide a buffet meal for $30 per head. Over the next few weeks a number of friends contacted Derek to tell him that they were no longer able to come to the party. Derek contacted Bubble and Squeak Cuisine to advise them that only 40 people would be attending. They said they would make the appropriate arrangements. On the night of the party only 30 people attended, so the restaurant allowed several other casual diners to also participate in the buffet. At the end of the evening, each of the guests paid Derek their $30 and he went to pay the ($30 x 30) $900 to the restaurant. They however insisted that the amount owing was ($30 x 60) $1,800. There was a heated argument between Derek and the restaurant manager which embarrassed Amanda and she expressed her displeasure on the way home. By the time they got home Derek was into his second heated argument for the evening. (a) Use the rules of offer and acceptance and any appropriate precedents, to explain which amount should have been paid to Bubble and Squeak Cuisine. (b) Explain what the situation would have been if, when Derek contacted the restaurant they said that they were only prepared to charge $30 if a minimum number of 40 guests attended. If a lower number attended then the charge would be $35 per head. If only 30 guests attended, explain how the rules of offer and acceptance would apply. Question Two
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