QUESTION 1 (600 WORDS)

Susan had been a manager at a number of successful bars over the last five years and had decided to finally open her own bar.  She contracted with Prestige Designs, a well-known Melbourne company doing interior design and finishing work to design and build the interior of her bar.  Susan believed that having the right internal design was essential for having a successful bar, and communicated this to Prestige Designs in the course of negotiations.  The contract called for all work on the interior of the bar to be completed by December 28th, so that Susan could hold a special opening party for the bar on December 31st.  In anticipation of this event, Susan paid the airfare for four of her closest friends from university from Brisbane to attend the opening evening.  Given feedback from social media, Susan expected a large crowed at the opening event and expected to turn a significant profit.  The total amount that Susan agreed to pay Prestige Designs was $40,000.

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