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Daniel and Jo have fairly recently started up in business together and have created a premium men's skincare range. Their USP is that each product in the range contains a simple booklet with a chart on how to build up the right skincare routine for the customer. With the aim of expanding their business, Daniel and Jo attended a regionalSmall Business Fair in January 2022, which was intended to give opportunity for local entrepreneurs to network with established business experts.
At the fair, Daniel and Jo met Ginette, a marketing consultant for a famous European car manufacturer. She advised them that they needed more contemporary packaging for their products and a good internet marketing campaign. Daniel and Jo arranged to meet Ginette during the fair at a "coffee and cake extravaganza, laid on by the organisers. All three were in a celebratory mood and were embarked upon eating a large chocolate cake. Ginette said that she thought that Daniel and Jo skincare range was miraculous and they all laughed about getting the range into the world Top. Ginette said, happy to give you advice anytime and teach you how to do world-leading marketing." Daniel and Jo agreed and said "I think that must be worth half the profits. What do you say? Ginette said Yippee! We have a deal. Immediately afterwards, Daniel and Jo started creating a new website and social media campaign, intermittently contacting Ginette for advice.
In addition, in February 2022 Daniel and Jo entered into a contract with Frederico, a packaging specialist, to design and supply new packaging for their skincare products. The agreed date for Frederico to deliver the packaging was 1st May 2022, as this was the time Daniel and Jo were preparing to launch their new marketing campaign for the skincare.
Unfortunately, in March 2022 Daniel and Jo received an email from Frederico saying that he would have difficulty finishing the packaging by 1st May 2022. Daniel and Jo were finding it a difficult process to get a patent for their skincare range and desperately wanted to be able to market the product as soon as possible. Therefore, they told Frederico that they would pay him 20% more if he would finish the packaging on time. Daniel and Jo received the new packaging from Frederico on 1st May 2022 ar began their new marketing campaign. Their sales increased and profits tripled.
Advise Daniel and Jo as to whether they have entered into an enforceable contract with Ginette to half the profits, and whether they are contractually obliged to pay the additional 20% to Frederico fu the packaging.
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