Contract Discharge by Frustration
Question 1
GRG International Music Hall engaged the services of Miss Joh Get, a disco dancer, to perform at its Grand Hall. GRG International Music Hall paid Miss Joh Get an advance of RM6, 000 as a deposit. Two days before the show, the bus which carrying Miss Joh Get and her dancers to the hall, met with nasty accident which resulting in Miss Joh Get and her dancers being admitted to the hospital for severe injuries to her both legs.
Discuss the liabilities of Miss Joh Get.
Answer:
First of all, we have to determine the issue whether she is can discharge the contract that she has made with GRG International Music Hall and whether she have to return back the RM6, 000 that she received in advance as a deposit from GRG International Music Hall.
The principal that can be used as a reference in order to solve this problem is section 57(2) and section 66 of Contracts Act 1950. According to section 57(2), it is clearly stated that when the contract is impossible to perform due the personal incapacity which is not caused by the fault of any parties of the contract, it is said that the contract is discharge by frustration. Whereas section 66 of the Contract Act 1950 stated that “any person who has received any advantage under the agreement or contract is bound to restore it, or to make compensation for it, to the person from whom he received it.”
Miss Joh Get has made a contract with GRG International Music Hall to perform at its Grand Hall, but because of the nasty accident that they bumped into, Miss Joh Get could not perform because of serious injury to her both legs. Here, we can see that it is very impossible for Miss Joh Get to perform at the Grand Hall due to severe pain that Miss Joh Get experiencing at her both legs. The contract is said to be discharge by frustration. The second issue to be solved is whether she is liable to return back the deposit that she has received since it is impossible for her to perform. Based on
GRG International Music Hall engaged the services of Miss Joh Get, a disco dancer, to perform at its Grand Hall. GRG International Music Hall paid Miss Joh Get an advance of RM6, 000 as a deposit. Two days before the show, the bus which carrying Miss Joh Get and her dancers to the hall, met with nasty accident which resulting in Miss Joh Get and her dancers being admitted to the hospital for severe injuries to her both legs.
Discuss the liabilities of Miss Joh Get.
Answer:
First of all, we have to determine the issue whether she is can discharge the contract that she has made with GRG International Music Hall and whether she have to return back the RM6, 000 that she received in advance as a deposit from GRG International Music Hall.
The principal that can be used as a reference in order to solve this problem is section 57(2) and section 66 of Contracts Act 1950. According to section 57(2), it is clearly stated that when the contract is impossible to perform due the personal incapacity which is not caused by the fault of any parties of the contract, it is said that the contract is discharge by frustration. Whereas section 66 of the Contract Act 1950 stated that “any person who has received any advantage under the agreement or contract is bound to restore it, or to make compensation for it, to the person from whom he received it.”
Miss Joh Get has made a contract with GRG International Music Hall to perform at its Grand Hall, but because of the nasty accident that they bumped into, Miss Joh Get could not perform because of serious injury to her both legs. Here, we can see that it is very impossible for Miss Joh Get to perform at the Grand Hall due to severe pain that Miss Joh Get experiencing at her both legs. The contract is said to be discharge by frustration. The second issue to be solved is whether she is liable to return back the deposit that she has received since it is impossible for her to perform. Based on