The case is:
Jackie and Sarah grew up as neighbours in Dublin. They were always very close, almost like sisters, and still remain good friends. Now in their thirties, they both own successful businesses. Jackie runs a bar and concert venue, “Jackie’s Gaff”, and Sarah runs an Irish record label, “Solas”.
They have done business together in the past, with Sarah organising bands to play in Jackie’s. In February 2016, Jackie is having trouble attracting customers and paying her rent for the property. Coincidentally she is contacted by Sarah who offers a deal. She is offered Solas’ top Irish act, Seducers, to play as the house band every Friday night for two months for only €2,000 per performance, paid to Solas each Friday. She insists that it will be a great deal for Jackie and will get the bar more prominence as a place for new live music. Jackie feels she owes it to Sarah and goes ahead with it.
Sarah contacts Seducers and agrees to pay them €8,000 for the next two months work. She also states that after the two months she will put €4,000 into studio time to record their first album, thinking it would be a good time after raising the band’s profile.
By mid-February, the gigs are not selling well. Jackie can’t afford to keep Jackie’s Gaff open and shuts the business.
Sarah is furious and wants to enforce her part of the deal with Jackie. She feels she is owed the full €16,000 for the two months of gigs. Sarah does not find Seducers another venue for their gigs, thinking she will get the money out of Jackie. Sarah tells Seducers she will not be going ahead with the studio time for the album and they are not happy and considering suing and leaving Solas.
Q1: Was there an enforceable contract between Sarah and Jackie? Please explain your answer in as much detail as possible, using examples and cases from the course to illustrate your argument.
Q2: If Sarah were successful in a case against Jackie, what damages would she be able to recover?