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point 1: After entering into a management agreement two years ago for the purpose of starting a business in cattle breeding next year, Georgina paid $5,250 by cheque to ACM, whose business was transferring embryos from stud cows to ordinary breeding cows. Under the agreement she was guaranteed six calves in the next two years. If the venture failed, ACM remained liable to supply the calves from another source. Having paid her fees for Year 2, she did not receive any subsequent noti?cation that the implants in her recipient cows were successful.
point 2: She did not follow up after the implantation notices to ?nd out whether any of her cows were pregnant. Nor did she enquire whether her cows had been implanted a second time as contemplated by the terms of the Management Agreement, which provided that each recipient cow would be implanted once in each of the 12-month contractual periods. She said that she had spoken to her accountant who told her things were progressing, but slower than anticipated.
point 3: After paying her Year 2 Fees in June, Georgina heard nothing speci?c from ACM except by way of newsletters containing general information. She made no attempt to contact ACM in the current year about extending the lease on her recipient cows. She said she was going through a very dif?cult time. Her 12-month-old child had contracted a serious illness and she had to focus on looking after him.
Problem 1: Is Georgina carrying on business?
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