Contract Flashcards
A comedian is booked for a £1200 gig. He is paid a £300 advance.
He booked a £100 hotel room fo the night of the event.
The day before the show,, the local authority shut down the club, leading to the cancellation of the show. The comedian cannot get a refund from the hotel.
The contract has been frustrated. What is the court most likely to order under the Law Reform (Frustrated Contracts) Act 1943?
The comedian is liable to return £300. At the court’s discretion, he may be allowed to keep £100.
When may an offer be revoked by the offeror?
Any time, until it is accepted.
What is a ‘liquidated damages’ clause
It must be a genuine assessment of losses in order to be valid; if it is intended to penalise the contract-breaker, to discourage beraches of the contract, it will be void and not enforceable
