Topic $5$: Contracts $$ Termination

Workshop activities

Case Study $1$

Fred is retiring from his legal practice. Whilst attending a BBQ at his home on Saturday $26$th January, he makes an offer to sell his office equipment to his neighbour Betty for $$20,000.$ Betty accepts Fred's offer and pays him a deposit of $$1000.$ It was agreed that Betty would collect the office equipment on Thursday $31$st January and at the time of collection, Betty will pay the balance owing.

Unfortunately a robbery had occurred at Fred's office some time during the week before the $26$th January and all the office equipment has been taken. Neither Fred nor Betty were aware of this until Monday $28$th January.

What effect does this robbery have on the contract between Fred and Betty?

Case Study $2$

Rose and Jeannie decided to go on a week$$s holiday together. When they arrived at the airport they find their flight has been delayed by fog and will not be leaving until the next morning. Rather than return home, they decide to check into a nearby motel for the night. They take a double room and pay for the night$$s accommodation in advance. When they go upstairs to their room they find attached to the back of the door a notice that states:

The Management will not be responsible, nor shall any of the Management's servants or agents be responsible, for any loss or damage caused to or suffered by the person or property of our guests howsoever such loss or damage may be caused.

Rose and Jeannie glance at the notice but do not read it$.$ They decide to go to a concert that evening. They lock the door to their room behind them when they leave. They arrive at the theatre in good time, purchase their tickets and take their seats. Ten minutes after the concert has started a fire breaks out in the theatre and the rest of the concert is cancelled. The concert organisers refuse to refund any money to Rose and Jeannie. Rose and Jeannie go to a nearby restaurant where they decide to have supper before retiring for the night. Jeannie orders and eats half a smoked salmon sandwich. She sends the remaining portion back as she says that it tasted odd. Later that night Jeannie is admitted to hospital with acute food poisoning caused by the salmon.

The next day Rose cancelled their flight on the ground of the delay caused by the fog and Jeannie$$s illness. The airline cancelled their flight but refused to refund all their money. A flight cancellation penalty of $25\%$ of the ticket price $($which was the normal rate imposed by all airlines$)$ was deducted. To add to their troubles, Rose subsequently discovers, upon returning to their motel room, that someone has stolen her jewellery and money that she had left in her room.

Advise Rose and Jeannie of their legal positions with respect to all of the above events.