Question
An American couple, Archie and Betty had decided to choose Tioman Island as their wedding destination. Upon browsing the internet they found Crystal Hotel to
An American couple, Archie and Betty had decided to choose Tioman Island as their wedding destination. Upon browsing the internet they found Crystal Hotel to be providing the best rates and packages. They were wowed by the positive reviews they had read on Trip Advisor in terms of their accommodation, delicacies, entertainment, wedding venue, tours and safety.
Upon verbal communication with Reggie from Crystal Hotel, the couple agreed to a round up price of RM 700,000.00. The packages were to contain the following;
- 5 star hotel ballroom reservation for guests accommodating up to 1000 persons.
- Professional chef and culinary team for an indo-western dining course.
- 5 star rooms for all guests including breakfast.
- Rental of premium continental car as a wedding car.
And as a token of appreciation Reggie verbally agrees to top up the package with an in studio and out-door pre-wedding shoot for the couple with the town's finest photographer; Jughead.
They agree to pay the RM 750,000.00 in three installments and pay RM 250,000.00 up front through an online transfer. As it is April and the wedding is only due to take place during the first week of June, the remainder is to be paid in May and June respectively. A second payment is made in May and the pre-wedding photo shoot is arranged for the end of May.
Unfortunately, Jughead only allocates a slot for the in studio shoot as there is nothing in writing about it and his schedule does not permit an add-on. The food tasting at the hotel does not go as planned and the caterers inform Reggie that due to the tide season, the signature seafood dish cannot be served as the seafood is unavailable. At the same time, Reggie has actually allotted rooms to 300 guests of another wedding party, creating an inability to provide room accommodation for all of Archie and Betty's guests. Reggie chooses to not inform the couple about these shortcomings out of fear of losing the business and tries to obtain an alternative on the quiet. He only intends to inform once he has found a solution.
In the morning of the wedding day, the ballroom and wedding venue attached to it catches fire due to the polyester and candle decorations chosen. This now means that it is not possible for Archie and Bettie to hold their wedding at Crystal Hotel and will need to source out for alternative venues.
You have been appointed to advice Archie and Betty (Plaintiff) / Reggie of Crystal Hotel (Defendant).
You are required to identify the elements that form a valid contract; explain the way the contract has been discharged and discuss the possible remedies or defences that are available.
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