Fact Scenario:
Lisa and Sarah have been close friends for several years. Sarah’s birthday is approaching, and
Lisa wants to surprise her with a special birthday cake. Lisa decides to order a custom cake from
Blissful Bakes, a local bakery known for their delicious and beautifully designed cakes.
On June 28, 2024, Lisa stops by Blissful Bakes and speaks with Mark, the bakery’s owner and
head baker. She explains that Sarah loves chocolate cake with caramel filling and requests a
design that reflects Sarah’s passion for photography. Mark suggests a cake shaped like a vintage
camera, decorated with edible fondant and sugar flowers to match Sarah’s favorite colors, blue
and lavender.
Mark and Lisa discuss the specifications and pricing. Lisa accepts the quotation and confirms
that she would like to order the cake.
Mark, known for his creative approach to baking and customer service, had recently started using
ChatGPT—a cutting-edge AI platform—to draft contracts quickly. Eager to impress Lisa with
his new tool, Mark initiates a conversation with ChatGBT to draft the contract for the cake order.
Using ChatGPT, he provides the details of the cake order:
● Cake Description: Blissful Bakes agrees to create a custom birthday cake for Sarah. The
cake shall be:
○ Flavor: Chocolate cake with caramel filling.
○ Design: Shaped like a vintage camera, decorated with edible fondant and sugar
flowers in blue and lavender colors.
● Price: The total price for the custom birthday cake is $250 CAD, inclusive of delivery to
Lisa’s apartment on the day of Sarah’s birthday, July 10, 2024 .
● Delivery: Blissful Bakes shall deliver the birthday cake to Lisa’s apartment on July 10,
2024. Lisa will provide the exact delivery address and any specific instructions for setup.
● Payment: Lisa agrees to pay the full amount of $250 CAD upon delivery of the birthday
cake.
After processing the information, ChatGPT generates the attached Custom Birthday Cake
Contract. Mark signs the contract and presents it to Lisa while she is on her phone. She quickly
signs it without reading it thoroughly. Before Lisa leaves the bakery, Mark assures her that the
cake will be delivered and will exceed her expectations.
The evening before Sarah’s birthday, Mark meticulously sculpts the camera out of chocolate and
carefully crafts each blue and lavender flower by hand. Hours fly by as Mark loses himself in the
artistic process, occasionally humming tunes from his favorite baking show for inspiration.
Finally, after a marathon baking session that saw him covered in flour and sporting a few sugar
flower petals in his hair, Mark steps back to admire his masterpiece. The cake stood proudly on
his bakery counter, a testament to his dedication to both baking and the arts.
The next day, Lisa is busy setting up for the party, which is to begin at 1:00 p.m. Mark, known
for his punctuality, arrives at Lisa’s apartment a full four hours before the party is set to begin.
Lisa is surprised by the early arrival, and opens the door with a mixture of excitement and slight
concern.
Mark proudly presents Lisa with the birthday cake. Lisa is surprised to see that the cake is
shaped like a digital camera rather than the analog film camera she had envisioned. Knowing that
there would not be enough time to make a new cake and not wanting to cause any delays, Lisa
pays the full amount of $250 CAD to Mark, who graciously accepts the payment and helps Lisa
place the cake on the dining table.
As the day progressed, so did the temperature. The summer sun blazed high in the sky, causing
Lisa’s apartment to warm up faster than expected. Lisa, caught up in last-minute preparations, did
not notice the gradual heat creeping into the room.
Hours passed, and as Sarah’s arrival time drew near, Lisa finally checked on the cake. To her
horror, the cake had succumbed to the heat. The chocolate lens had melted into a puddle, and the
fondant flowers had wilted and lost their shape, transforming the elegant design into a messy,
unrecognizable heap.
Lisa panicked, realizing that there was no time to salvage the cake. She frantically called Mark,
hoping for a miracle. However, Mark was unavailable, tied up with urgent bakery tasks and
unable to come to Lisa’s aid.
Desperate and on the verge of tears, Lisa attempted to reshape the melted chocolate and salvage
the remaining fondant, but her efforts only made the situation worse. The cake, once a
centerpiece of the party plans, now looked like a melted disaster.
Sarah arrived at Lisa’s apartment, greeted by a scene of frantic apologies and a cake that was a
far cry from the elegant analog camera Lisa had ordered. Despite the mishap, Sarah reassured
Lisa that the thought and effort behind the surprise meant more to her than any perfectly crafted
cake.
The following day, Lisa called Mark. She expressed the frustration she felt when Mark arrived
with a digital camera-shaped cake instead of the analog camera she had envisioned. “I said
vintage camera, who thinks of a digital camera?” Lisa exclaimed, clearly upset by the
unexpected design. Lisa went on to comment that Mark’s early arrival exacerbated the situation,
causing the cake to deteriorate before the party even began. “You told me the cake would exceed
my expectations! Instead I ended up with a lopsided mess, resembling a mishmash of camera
parts rather than the elegant homage to photography I had hoped for!” Lisa shouted into the
phone. Lisa asserted her intention to seek a full refund for the cake, and alleged that there had
been a fundamental breach of the contract between her and Blissful Bakes. Before hanging up
the phone, she emphasized that if Blissful Bakes did not comply with providing the refund, she
would consult with her lawyer to explore further legal action.
Mark disagrees with Lisa’s assertions. It’s 2024— surely anything more than a decade old
qualifies as “vintage” in today’s fast-paced tech world? Mark had only agreed to deliver the cake
on the day of the party. If Lisa wanted it delivered at a certain time, she should have said so!
Most people would have appreciated his early arrival. Mark cannot control the weather, and Lisa
should have known to put the cake in the refrigerator on such a hot day. As for Lisa’s assertions
regarding Mark’s comment that the cake would “exceed” her expectations, this is just something
Mark told all customers to help them feel confident in his cake decorating abilities.
Instructions
Question 1 – 15 Marks
Please review the contract and consider the 6 essential elements that must be present for a
contract to be legally binding, and whether they are met in this case. If there is additional
information you think you would need from Lisa or Mark to properly answer the question, or if
you are making any assumptions in your assessment, please note this in your answer.
Question 2- 20 Marks
Please review the contract from the perspective of Blissful Bakes and provide advice to Mark on
the terms of the contract. In answering this question, consider the following:
● What are the key obligations of Blissful Bakes under this contract?
● How does the contract specify the cake’s description, price, delivery arrangements, and
payment terms?
● Is there anything missing in the contract that you think should have been included?
● How does the “No Refund or Legal Action” clause benefit Blissful Bakes? Are there any
potential challenges to enforcing this clause?
● How could Mark have better protected Blissful Bakes’ interests?
Question 3- 10 Marks
Is Mark bound by his statement that the cake would “exceed” Lisa’s expectations? Why or why
not?
Question 4- 25 Marks
Did Mark make any misrepresentations to Lisa? If so, what kind of misrepresentation was it,
what term was misrepresented, and what remedy would be available to Lisa? Provide a
perspective and argument for both Lisa’s claim of misrepresentation and Mark’s possible
defense.
Question 5- 15 Marks
In reviewing the contract from the perspective of Blissful Blakes, would you advise Mark to
provide the refund? Why or why not? Discuss both legal and business-related implications you
think he should consider in making his decision. What practical advice would you give to Mark
before entering into similar contracts?
Question 6 – 15 Marks
Please review the contract from the perspective of Lisa. What practical advice would you give
her before signing this contract? How could Lisa have better protected her interests while dealing
with Blissful Bakes?
Custom Birthday Cake Contract
This contract (“Contract”) is entered into on June 28, 2024, between:
Lisa Johnson Address: 1124 Avenue X Regina, Saskatchewan. Phone: 306-555-5555
(“Client”)
and
Blissful Bakes Address: 1892 Avenue Y Regina, Saskatchewan. Phone: 306-222- 2253
(“Bakery”)
Background: Lisa Johnson wishes to surprise her friend Sarah Smith with a custom birthday
cake from Blissful Bakes. The parties agree to the following terms:
1. Cake Description: Blissful Bakes agrees to create a custom birthday cake for Sarah Smith.
2. Price: The total price for the custom birthday cake is $250 CAD, inclusive of delivery to Lisa
Johnson’s apartment on the birthday date specified below.
3. Delivery: Blissful Bakes shall deliver the custom birthday cake to Lisa Johnson’s apartment
on July 10, 2024. Lisa Johnson will provide the exact delivery address and any specific setup
instructions to Blissful Bakes prior to delivery.
4. Payment: Lisa Johnson agrees to pay a deposit in the full amount of $250 CAD upon delivery
of the custom birthday cake by Blissful Bakes.
5. Quotation and Acceptance: Mark, representing Blissful Bakes, has provided Lisa Johnson
with a detailed quotation specifying the cake’s specifications and pricing. Lisa Johnson accepts
this quotation and confirms the order with Blissful Bakes.
6. Assurance: Blissful Bakes assures Lisa Johnson that the custom birthday cake will be
delivered on time and will be crafted in accordance with the specifications outlined by Lisa
Johnson.
7. Additional Terms: Any changes to the cake’s specifications must be agreed upon by both
parties in writing prior to the delivery date.
8. Governing Law: This Contract shall be governed by and construed in accordance with the
laws of Saskatchewan, Canada.
9. No Refund or Legal Action: Lisa Johnson agrees that under no circumstances shall she be
entitled to a refund of the payment made for the custom birthday cake ordered from Blissful
Bakes, nor shall she pursue any legal action against Blissful Bakes, its owners, employees, or
affiliates, related to the cake order or its delivery.
By signing this Contract, the Lisa Johnsonacknowledges and agrees that the payment made for
the cake is non-refundable and that she waives any right to initiate legal proceedings, including
but not limited to claims, disputes, or lawsuits, against Blissful Bakes arising from dissatisfaction
with the cake’s design, flavor, condition, delivery, or any other aspect related to the cake.
This clause shall be binding and enforceable upon both parties, and supersedes any other
agreements, warranties, or representations, whether written or oral, regarding refunds or legal
recourse concerning the custom cake order.
By signing below, the parties acknowledge that they have read, understood, and agreed to all
terms and conditions outlined in this Contract.
Signatures:
Client:
Lisa Johnson
Date: _________________
Bakery:
Blissful Bakes (by Mark)
Date: _________________
Lisa wants to surprise her with a special birthday cake. Lisa decides to order a custom cake from
Blissful Bakes, a local bakery known for their delicious and beautifully designed cakes.
On June 28, 2024, Lisa stops by Blissful Bakes and speaks with Mark, the bakery’s owner and
head baker. She explains that Sarah loves chocolate cake with caramel filling and requests a
design that reflects Sarah’s passion for photography. Mark suggests a cake shaped like a vintage
camera, decorated with edible fondant and sugar flowers to match Sarah’s favorite colors, blue
and lavender.
Mark and Lisa discuss the specifications and pricing. Lisa accepts the quotation and confirms
that she would like to order the cake.
Mark, known for his creative approach to baking and customer service, had recently started using
ChatGPT—a cutting-edge AI platform—to draft contracts quickly. Eager to impress Lisa with
his new tool, Mark initiates a conversation with ChatGBT to draft the contract for the cake order.
Using ChatGPT, he provides the details of the cake order:
● Cake Description: Blissful Bakes agrees to create a custom birthday cake for Sarah. The
cake shall be:
○ Flavor: Chocolate cake with caramel filling.
○ Design: Shaped like a vintage camera, decorated with edible fondant and sugar
flowers in blue and lavender colors.
● Price: The total price for the custom birthday cake is $250 CAD, inclusive of delivery to
Lisa’s apartment on the day of Sarah’s birthday, July 10, 2024 .
● Delivery: Blissful Bakes shall deliver the birthday cake to Lisa’s apartment on July 10,
2024. Lisa will provide the exact delivery address and any specific instructions for setup.
● Payment: Lisa agrees to pay the full amount of $250 CAD upon delivery of the birthday
cake.
After processing the information, ChatGPT generates the attached Custom Birthday Cake
Contract. Mark signs the contract and presents it to Lisa while she is on her phone. She quickly
signs it without reading it thoroughly. Before Lisa leaves the bakery, Mark assures her that the
cake will be delivered and will exceed her expectations.
The evening before Sarah’s birthday, Mark meticulously sculpts the camera out of chocolate and
carefully crafts each blue and lavender flower by hand. Hours fly by as Mark loses himself in the
artistic process, occasionally humming tunes from his favorite baking show for inspiration.
Finally, after a marathon baking session that saw him covered in flour and sporting a few sugar
flower petals in his hair, Mark steps back to admire his masterpiece. The cake stood proudly on
his bakery counter, a testament to his dedication to both baking and the arts.
The next day, Lisa is busy setting up for the party, which is to begin at 1:00 p.m. Mark, known
for his punctuality, arrives at Lisa’s apartment a full four hours before the party is set to begin.
Lisa is surprised by the early arrival, and opens the door with a mixture of excitement and slight
concern.
Mark proudly presents Lisa with the birthday cake. Lisa is surprised to see that the cake is
shaped like a digital camera rather than the analog film camera she had envisioned. Knowing that
there would not be enough time to make a new cake and not wanting to cause any delays, Lisa
pays the full amount of $250 CAD to Mark, who graciously accepts the payment and helps Lisa
place the cake on the dining table.
As the day progressed, so did the temperature. The summer sun blazed high in the sky, causing
Lisa’s apartment to warm up faster than expected. Lisa, caught up in last-minute preparations, did
not notice the gradual heat creeping into the room.
Hours passed, and as Sarah’s arrival time drew near, Lisa finally checked on the cake. To her
horror, the cake had succumbed to the heat. The chocolate lens had melted into a puddle, and the
fondant flowers had wilted and lost their shape, transforming the elegant design into a messy,
unrecognizable heap.
Lisa panicked, realizing that there was no time to salvage the cake. She frantically called Mark,
hoping for a miracle. However, Mark was unavailable, tied up with urgent bakery tasks and
unable to come to Lisa’s aid.
Desperate and on the verge of tears, Lisa attempted to reshape the melted chocolate and salvage
the remaining fondant, but her efforts only made the situation worse. The cake, once a
centerpiece of the party plans, now looked like a melted disaster.
Sarah arrived at Lisa’s apartment, greeted by a scene of frantic apologies and a cake that was a
far cry from the elegant analog camera Lisa had ordered. Despite the mishap, Sarah reassured
Lisa that the thought and effort behind the surprise meant more to her than any perfectly crafted
cake.
The following day, Lisa called Mark. She expressed the frustration she felt when Mark arrived
with a digital camera-shaped cake instead of the analog camera she had envisioned. “I said
vintage camera, who thinks of a digital camera?” Lisa exclaimed, clearly upset by the
unexpected design. Lisa went on to comment that Mark’s early arrival exacerbated the situation,
causing the cake to deteriorate before the party even began. “You told me the cake would exceed
my expectations! Instead I ended up with a lopsided mess, resembling a mishmash of camera
parts rather than the elegant homage to photography I had hoped for!” Lisa shouted into the
phone. Lisa asserted her intention to seek a full refund for the cake, and alleged that there had
been a fundamental breach of the contract between her and Blissful Bakes. Before hanging up
the phone, she emphasized that if Blissful Bakes did not comply with providing the refund, she
would consult with her lawyer to explore further legal action.
Mark disagrees with Lisa’s assertions. It’s 2024— surely anything more than a decade old
qualifies as “vintage” in today’s fast-paced tech world? Mark had only agreed to deliver the cake
on the day of the party. If Lisa wanted it delivered at a certain time, she should have said so!
Most people would have appreciated his early arrival. Mark cannot control the weather, and Lisa
should have known to put the cake in the refrigerator on such a hot day. As for Lisa’s assertions
regarding Mark’s comment that the cake would “exceed” her expectations, this is just something
Mark told all customers to help them feel confident in his cake decorating abilities.
Instructions
Question 1 – 15 Marks
Please review the contract and consider the 6 essential elements that must be present for a
contract to be legally binding, and whether they are met in this case. If there is additional
information you think you would need from Lisa or Mark to properly answer the question, or if
you are making any assumptions in your assessment, please note this in your answer.
Question 2- 20 Marks
Please review the contract from the perspective of Blissful Bakes and provide advice to Mark on
the terms of the contract. In answering this question, consider the following:
● What are the key obligations of Blissful Bakes under this contract?
● How does the contract specify the cake’s description, price, delivery arrangements, and
payment terms?
● Is there anything missing in the contract that you think should have been included?
● How does the “No Refund or Legal Action” clause benefit Blissful Bakes? Are there any
potential challenges to enforcing this clause?
● How could Mark have better protected Blissful Bakes’ interests?
Question 3- 10 Marks
Is Mark bound by his statement that the cake would “exceed” Lisa’s expectations? Why or why
not?
Question 4- 25 Marks
Did Mark make any misrepresentations to Lisa? If so, what kind of misrepresentation was it,
what term was misrepresented, and what remedy would be available to Lisa? Provide a
perspective and argument for both Lisa’s claim of misrepresentation and Mark’s possible
defense.
Question 5- 15 Marks
In reviewing the contract from the perspective of Blissful Blakes, would you advise Mark to
provide the refund? Why or why not? Discuss both legal and business-related implications you
think he should consider in making his decision. What practical advice would you give to Mark
before entering into similar contracts?
Question 6 – 15 Marks
Please review the contract from the perspective of Lisa. What practical advice would you give
her before signing this contract? How could Lisa have better protected her interests while dealing
with Blissful Bakes?
Custom Birthday Cake Contract
This contract (“Contract”) is entered into on June 28, 2024, between:
Lisa Johnson Address: 1124 Avenue X Regina, Saskatchewan. Phone: 306-555-5555
(“Client”)
and
Blissful Bakes Address: 1892 Avenue Y Regina, Saskatchewan. Phone: 306-222- 2253
(“Bakery”)
Background: Lisa Johnson wishes to surprise her friend Sarah Smith with a custom birthday
cake from Blissful Bakes. The parties agree to the following terms:
1. Cake Description: Blissful Bakes agrees to create a custom birthday cake for Sarah Smith.
2. Price: The total price for the custom birthday cake is $250 CAD, inclusive of delivery to Lisa
Johnson’s apartment on the birthday date specified below.
3. Delivery: Blissful Bakes shall deliver the custom birthday cake to Lisa Johnson’s apartment
on July 10, 2024. Lisa Johnson will provide the exact delivery address and any specific setup
instructions to Blissful Bakes prior to delivery.
4. Payment: Lisa Johnson agrees to pay a deposit in the full amount of $250 CAD upon delivery
of the custom birthday cake by Blissful Bakes.
5. Quotation and Acceptance: Mark, representing Blissful Bakes, has provided Lisa Johnson
with a detailed quotation specifying the cake’s specifications and pricing. Lisa Johnson accepts
this quotation and confirms the order with Blissful Bakes.
6. Assurance: Blissful Bakes assures Lisa Johnson that the custom birthday cake will be
delivered on time and will be crafted in accordance with the specifications outlined by Lisa
Johnson.
7. Additional Terms: Any changes to the cake’s specifications must be agreed upon by both
parties in writing prior to the delivery date.
8. Governing Law: This Contract shall be governed by and construed in accordance with the
laws of Saskatchewan, Canada.
9. No Refund or Legal Action: Lisa Johnson agrees that under no circumstances shall she be
entitled to a refund of the payment made for the custom birthday cake ordered from Blissful
Bakes, nor shall she pursue any legal action against Blissful Bakes, its owners, employees, or
affiliates, related to the cake order or its delivery.
By signing this Contract, the Lisa Johnsonacknowledges and agrees that the payment made for
the cake is non-refundable and that she waives any right to initiate legal proceedings, including
but not limited to claims, disputes, or lawsuits, against Blissful Bakes arising from dissatisfaction
with the cake’s design, flavor, condition, delivery, or any other aspect related to the cake.
This clause shall be binding and enforceable upon both parties, and supersedes any other
agreements, warranties, or representations, whether written or oral, regarding refunds or legal
recourse concerning the custom cake order.
By signing below, the parties acknowledge that they have read, understood, and agreed to all
terms and conditions outlined in this Contract.
Signatures:
Client:
Lisa Johnson
Date: _________________
Bakery:
Blissful Bakes (by Mark)
Date: _________________