b) In January 2021, Michele books a 5,000 cruise on The Adventure, a new cruise ship, for August 2021. On booking, Michele immediately pays the deposit of 1,000 with the remainder to be paid on the day of the cruise. Advise Michele in EACH of the following alternative situations:

i) On 30th July, The Adventure is destroyed by a fire. The owners had spent 100 per passenger, valeting the cabins in preparation for the following week's cruise.

ii) Due to unexpected hostilities in the Middle East in February, the cost of the ship's fuel increases by 300%. The Adventure's owners tell Michele that the contract for the cruise 'has been frustrated'.

(100 marks)