Atomic Kat Ltd manages a famous pop group known as Atomic Kat. Each member of the group has signed a contract with Atomic Kat Ltd agreeing to perform in the band. In January, Atomic Kat Ltd began negotiations with Alcopops Plc for sponsorship for Atomic Kat, a, in a proposed 6-week tour. Natasha is the lead singer in Atomic Kat. In February Natasha informed the rest of the members of the group that she was thinking of going solo. ‘I’m not sure, I’m thinking about it’, she said. In March, Atomic Kat Ltd signed a sponsorship agreement with Alcopops Plc under which Atomic Kat Ltd agreed to promote Alcopops over a fixed duration 6-week tour in return for the sum of £100,000 paid by Alcopops to support the group’s tour. Atomic Kat Ltd immediately began marketing and publicity for the tour, and sold hundreds of tickets to fans who were looking forward to hearing the band and especially Natasha who is the band’s most famous member. The tour has now began, but at the end of the first week on tour Natasha announced publicly that she would be leaving the group to pursue her solo career. The band is now refusing to perform without Natasha. They consider her to be their muse and they don’t feel able to perform without her. The fans who have already bought tickets are saying that if the group performs without Natasha they will ask for their money back. Alcopops Plc has informed Atomic Kat Ltd that if they fail to promote Alcopops as agreed they will sue for the return of £100,000 plus interest and punitive damages. In addition the government has announced that due to the pandemic music bands are not allowed to go on tour in Manchester and Leeds, which were two key cities in the Atomic Kat itinerary. Advise Atomic Kats Ltd on its rights and obligations in the law of contract.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Atomic Kat Ltd manages a famous pop group known as Atomic Kat. Each member of the group has signed a contract with Atomic Kat Ltd agreeing to perform in the band. In January, Atomic Kat Ltd began negotiations with Alcopops Plc for sponsorship for Atomic Kat, a, in a proposed 6-week tour. Natasha is the lead singer in Atomic Kat. In February Natasha informed the rest of the members of the group that she was thinking of going solo. ‘I’m not sure, I’m thinking about it’, she said. In March, Atomic Kat Ltd signed a sponsorship agreement with Alcopops Plc under which Atomic Kat Ltd agreed to promote Alcopops over a fixed duration 6-week tour in return for the sum of £100,000 paid by Alcopops to support the group’s tour. Atomic Kat Ltd immediately began marketing and publicity for the tour, and sold hundreds of tickets to fans who were looking forward to hearing the band and especially Natasha who is the band’s most famous member. The tour has now began, but at the end of the first week on tour Natasha announced publicly that she would be leaving the group to pursue her solo career. The band is now refusing to perform without Natasha. They consider her to be their muse and they don’t feel able to perform without her. The fans who have already bought tickets are saying that if the group performs without Natasha they will ask for their money back. Alcopops Plc has informed Atomic Kat Ltd that if they fail to promote Alcopops as agreed they will sue for the return of £100,000 plus interest and punitive damages. In addition the government has announced that due to the pandemic music bands are not allowed to go on tour in Manchester and Leeds, which were two key cities in the Atomic Kat itinerary. Advise Atomic Kats Ltd on its rights and obligations in the law of contract.

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