Government of Karlic (A Caribbean Country) signs a contract with Suzhou Garden Hotel orders one room to treat King of Karlic, Jack Sparrow, during his 10-day visit to China. However, Jack Sparrow was too old and got Covid-19 one day before his tour to China. The doctor of Jack said that there is a high life risk for him to go for a long trip. Therefore, Government of Karlic therefore cancels the contract.

Suzhou Garden Hotel now claims the following damages:

1. Room fee for 10 days；
2. Loss of business opportunity: Government of Barbosa (Another Caribbean Country) will appoint Suzhou Garden Hotel as Royal Partner to serve King Barbosa during his visit to China if Suzhou Garden Hotel treats Jack Sparrow good. The income is supposed to be 10,000,000 RMB to treat King Barbosa.
3. Whether there is breach of government of Karlic? Is government of Karlic liable for the losses of Suzhou Garden Hotel according to Chinese law ? Whether it can raise any defense to reduce its liability?

Answer rating: 100% (QA)

The situation described involves a contract between the Government of Karlic and Suzhou Garden Hotel ... View the full answer