Cakes business for extended period

Reference no: EM133684050

Viggo gets over the Sydney Expo with your advice (whatever that may be). The second year in business Veruka breaks her hip slipping on some buter cream icing. She is unable to work in the V2 Cakes business for an extended period. Viggo manages to keep the business going but profits decline with one less baker and cake decorator. As medical bills mount up Veruka gets worried. She goes onto the online orders for V2 Cakes and follows up an inquiry. As a result, she books an expensive cake for 6 months in advance and takes a deposit of $6000. Veruka uses the funds to pay her medical bills and her mortgage.

One month before the cake is due to be delivered, the bride calls to ask why she has not had the complimentary meeting to discuss the cake. Viggo is horrified. In fact, he suffers from a debilitating atack of vertigo and needs to take several days off work. When he returns the problem is still there and his reliable apprentice, Chez asks what to do.

Chez reports he cannot find the order anywhere in the V2 Cakes finance system. Viggo checks the accounts and no deposits are recorded despite the bride producing receipts with the V2 Cakes logo on them. Then Viggo notices that Veruka's poor attempt at his signature is on the receipt. He suffers another vertigo attack, but Chez throws cold water on his face and says: "we need to focus on this cake."

Viggo wants to argue that the order was not authorized and that he is not responsible for the signature on the receipt. He is also concerned about his reputation but figures he still has Viggo's Visions to fall back on.

Advise Viggo on the following four issues

1. Can Viggo assert he is not bound by the order as he did not take it and it is not in the booking system?

2. Is V2 Cakes bound to make and deliver the cake to the bride?

3. Can Viggo take action against Veruka in relation to the deposit received?

4. Would your advice be any different if these were the facts: Atier Veruka broke her hip, Viggo had put a notice on the V2 Cakes website stating that less orders were being taking until Veruka recovered from her fall and could bake again. The bride who ordered the cake has read that notice and called Veruka direct saying "I know you are not working at V2 Cakes. Chez told me that they could not make a Bluey wedding cake as it did not fit their brand. Could you just make me the cake as a favour?" Veruka agrees as she needs the money but sadly her skills are impacted by her unsteady gait and the sub-standard cake collapsed mid-wedding reception. The bride sues V2 Cakes for ruining her wedding. Notwithstanding what the brides cause.

Reference no: EM133684050

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