HTM450

Case study #2

Erik books a weekend in Manitoba through a package advertised by K. Roman travel agency in Toronto. The reservation (return flight and hotel) is made over the phone for a total cost of $850 including the agency fee.During the phone call, Erik and the travel agent agree to finalize the payment in person within3 days. However, two days after this phone call, Erik falls sick with Covid-19 and is unable totravel. Therefore, Erik calls the travel agency to notify the cancellation of the booking.The travel agent, however, objects that the reservation made over the phone was final andErik needed to provide full payment for the package, as per the agreed amount.Upon Erik's refusal, the travel agency brings the matter to Court, claiming breach of contract and demanding compensation.

Choose your position by answering one of the following arguments:

1: K.Roman Travel Agency will win in court because this is a valid contract. Explain why yousustain this position and highlight which are the 6 elements of the contract traceable in this case.

2: K.Roman travel agency will be unsuccessful in Court because the reservation made by Erikover the phone does not qualify as a contract. Explain why you sustain this position, based on ananalysis of the essential elements of a contract that could - or could not - be traced in this casescenario