Advise client with reference to relevant legal authorities


Assignment task:

On 31 March 2023 Abner went to a company, Fab Statues (Pty) Ltd (FABSTA), a Namibian goldsmith specialising in the manufacturing of personalised gold statues. Abner explains to the owner Mutale that his dad is turning 80 and that as a birthday gift the family has decided to build him his own statue and erect it at the family farm. Mutale says: "Do not worry I have it all covered. I am after all the best on this side of the Orange River!" Abner relaxes in the belief that he has the best on the market. He also emphasises to Mutale that the birthday is on 27 May 2023 and that they would require the complete statue latest 19 May 2023. The parties agree in earnest to this date. Abner pays the full purchase price of N$25,000.00 and leaves with his invoice. Being the spendthrift that Mutale is, and armed with N$25,000.00 in the pocket, she immediately closes the shop and flies out to Cape Town where she stays for three weeks, blowing the money. She returned from Cape Town on 23 April 2023, only to find that Abner is hopping mad because he has not received any progress report from Mutale! However, she manages to convince him that all was on track. True to her word, Mutale finishes the statue on 12 May 2023, a whole week before delivery. Needless to say, Mutale is so proud of her handwork that she decides to celebrate this very noble occasion with her friend Mary. She reached in her bar cabinet for a bottle of Glenlivet 18 Years Old, the one reserved for such important days. Mutale and Mary drink the entire bottle and decide to admire the statue once more before the ladies call it a night. They go into the workshop where the statue is stored, but as fate would have it, Mutale stumbles and falls on the statue. The statue tumbles over and broke into 10 pieces. Mutale is devastated. She knows that with only a week left, she will not be able to repair and deliver the statue to Abner. Accordingly she informed Abner of her predicament. However, Abner tells her "that is not my problem. We have a contract and I expect delivery of the statue on 24 May 2023". Mutale is not able to fix the statue and therefore could not deliver same on the agreed date. Realising the gravity of the situation, Abner phones a goldsmith in Johannesburg, South Africa. The goldsmith is able to make the statue and deliver it by 26 May 2023. They agree, and Abner cancelled the contract with Mutale and demands that she repays his purchase price. The hiccup is that the statue, transport and all other costs amounts to N$50,000.00. Abner nevertheless pays same to the Johannesburg dealer under the belief that in the end he will be able to recover these costs from FABSTA (Pty) Ltd. Mutale is petrified of the situation especially since she squandered all that money in Cape Town! She approaches you, an attorney for Sue Settle & Fight Inc. for advice. Provide a legal opinion in which you advise your client FABSTA (Pty) Ltd on its liability herein. You are required to argue this opinion with reference to decided cases and the general principles of mercantile law. Please do not deal with the concept of negligence. You must be able to correctly identify the salient facts, the legal issue/s and fully advise your client with reference to the relevant legal authorities.

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