Scenario:
Memoona decided to put on an art exhibition at the gallery, to be held on the 2nd of January 2022. She contracted with Eric Suppliers Ltd to install a new heating system, and to paint the entrance hall in the gallery, at a total cost of £10,000. Both works had to be completed by 27th December 2021. Eric completed the installation work by 26th December 2021 but could not complete the painting until the 1st January, 2022.
As a result of Eric using the wrong type of paint, horrific toxic smells emanated through the main hall of the gallery. Memoona became furious, anxious, and extremely disappointed when she realised that it would be very difficult to hold the exhibition at her gallery. She phoned another gallery to find out if the exhibition could be held there instead. Unfortunately, she received no reply. She could have held the exhibition in the gallery basement but due to space restrictions there that would have meant she could have only accommodated some 50 guests (as opposed to the original 200 invited guests). Instead, she decided to cancel the whole exhibition.
Question:
a. In the above scenario, Memoona has refused to pay Eric because of the defective painting. Advise Eric of what to do using relevant legal principles.
b. Memoona has now decided to sue Eric for the loss of income in the sum of £500,000 as a result of the cancellation of her exhibition. Advise Memoona of the specific legal issues in this matter and what may be the likely outcome.
