Clara Bungle is a Media Personality and Model - Law Assignment Help

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In Contracts, there is only ONE ASSIGNMENT. This assignment is compulsory and must be submitted by all students. The assignment will constitute 20% of the final mark in this subject.

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Compulsory Assignment Question

Clara Bungle is a media personality and model. Recently, she decided to try and use her media profile to move to the next stage of her career. To that end she decided to go into the complementary medicine industry and create a range of “Ooze” vitamins and “healing balms”. To achieve this, she would need to engage a manufacturer to produce the products and a laboratory that could create the formulas for her unique range. She would also need to convince retailers to agree to stock her products in their stores.

She commenced discussions with L‘huil de Serpent Pty Ltd (LdS) a company specialising in the bulk manufacture of vitamins and lotions. She made it clear that she needed the manufacture of the products to proceed quickly as she wanted them in the shops for Christmas 2020. The negotiations resulted in Clara and LdS both signing the following document on 1 August 2020:

Letter of Intent

1. Having completed negotiations, Clara Bungle and L‘huil de Serpent Pty Ltd agree to sign a formal Contract to reflect the following matters.

2. Pursuant to this letter L‘huil de Serpent Pty Ltd will manufacture a range of vitamins and lotions for sale to Clara with a view to Clara on-selling the products to retailers.

3. The products will be manufactured according to formulas to be supplied by Roach Laboratories Pty Ltd. L‘huil de Serpent Pty Ltd agrees to contract with Roach Laboratories Pty Ltd for the development and supply of these formulas.

4. The price for the manufacture of the products will be determined by L‘huil de Serpent Pty Ltd.

5. Clara in her absolute discretion has final approval of all products and agrees to execute a formal manufacturing contract giving effect to these terms.

6. This agreement is for a ‘first run’ which will involve manufacturing 100,000 units reflecting the range of formulas provided by Roach Laboratories Pty Ltd to L‘huil de Serpent Pty Ltd, but actual numbers of any particular product in the range is at the discretion of L‘huil de Serpent Pty Ltd. The parties agree to negotiate a further agreement for a second run.

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