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1. Kathy, aged 17, decides to leave home because she does not get on with her parents. Over the next three weeks she enters into the following agreements:
(a) She borrows £500 from her older brother to tide her over until she can find a job.
(b) She takes a two-year lease on a bed-sit, paying three months' rent in advance.
(c) By pretending to be 21, she orders a £700 suite of furniture from Palatial Pads Ltd on 12 months' interest-free credit.
(d) She sets up a home catering business and immediately agrees to cater for 100 people attending a 21st birthday party for a price of £300. She insists on £100 deposit. As the day for the party approaches, she finds that she has taken on too much work for one person, so she rings her customers on the afternoon of the party to say that she will not be able to do the catering after all.
Discuss the legal effects of these transactions.
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