Question: Amazing Event Management Co. Ltd. (AEM) was a company which organized events such as conferences, concerts and similar events for people who wanted this organization done for them. Their work included advertising these events where needed in various ways. Barry Big Noise was one of their clients and had contracted with them to organize a music concert. To advertise this, AEM contracted with the Adelaide Bus Co. Ltd. (AB) to place fifty large poster advertisements in bus shelters for the two months prior to the concert. Unfortunately two of the famous bands which Barry had asked to play at the concert decided not to come and Barry was so upset he decided to cancel the whole concert.

Once AEM found out the concert was cancelled, they contacted AB and told them they no longer wanted the concert advertised. However AB responded that AEM had agreed to the contract and they would have to continue it as AB had already prepared the pictures for the posters and had printed them. If the concert was cancelled they would simply print cancelled over the top of the pictures.

AB went ahead with the advertisements and added the word cancelled in large print across the posters and placed them in the bus shelters and then charged AEM with the debt. AEM refused to pay.

Using cases to support your reasons, discuss the legal arguments that AB and AEM will raise to decide whether AEM must pay for this advertising or not and conclude which side has the stronger argument.