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Question 2 (15 marks) 2 pages
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Sylvia is an ex model and writes a column every two weeks for an online magazine called "Stay
in shape" She has a contract for three years. One of the terms of her contract is that her column
will be the first story listed in each edition. All of Sylvia's stories are to include a photo of her
when she was modelling. The editor of the online magazine had an exclusive interview with
Nicole Kidman, an Australian actress based in Hollywood. Sylvia's column was moved to
number three to make room for the interview with Nicole Kidman. There also was a recent
photo of Sylvia rather than the younger photo that had been agreed. When Sylvia saw the
published edition she was incensed and complained that "Stay in Shape" had breached her
contract and she was now going to write for another online magazine called "50 is the next 40"
The CEO of "Stay in Shape" magazine seeks your advice as to whether Sylvia can terminate
the contract as he would like to retain Sylvia's services
a) Has there been a breach of the contract by "Stay in Shape"?
b) Does the breach allow Sylvia to terminate the contract and move to the other online
magazine?
C) Are there any similar cases that assist you in advising "Stay in Shape"?
d) If just the recent photo was placed in the column instead of the younger photo and the
article was listed at number one could Sylvia terminate the contract?
e) If she cannot terminate the contract what other remedies could Sylvia seek?
[Answer here)
S: 904
English (Australia)
1109
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09:09

answer; planning;

answercombination of ability and experience of the partners;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.