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Case analysis 1- Bahraini Contract Law Case Study Fatima and Sara set up 'Fresh Bahrain' restaurant which was registered in Bahrain on the 15th December
Case analysis 1- Bahraini Contract Law Case Study Fatima and Sara set up 'Fresh Bahrain' restaurant which was registered in Bahrain on the 15th December 2019 as a Company with Limited Liability (WLL). They planned for the official launch of the restaurant to be on 17th April 2020. For the official launch, they hired a local Bahraini band (Band) to perform on the 17th April 2020. Part of the agreement was the following: - The Band would perform at the official launch - The band would shoot a promo video for the restaurant ahead of the launch The parties agreed to a fee of 5,000 BHD in total and all expenses incurred by the band during the promo video will be reimbursed by the company. The Band completed the promo video and sent it to the company on the 2nd February 2020 with an invoice for 200BHD for the cost incurred. used. Please advise Fresh Bahrain on the following events that ensued: Unfortunately, due to the unexpected global outbreak of the Coronavirus (COVID-19), the government in Bahrain ordered the closure of all non- essential businesses on March 2020, this included Fresh Bahrain restaurant. Therefore, the official launch did not go ahead, and the promo video could not be 1- The Band 2- Please provide full answers for your advice above referencing articles from the Bahrain Civil Code. Part 3 Company Law are now claiming for the full payment under the contract (i.e. 5,000BHD). Is the company obligated to pay this amount? Do the Band have rights for any claim under the contract? Would your answer differ if the government did not order the shutdown of businesses, but the Band chose not to come because they were concerned about the coronavirus outbreak. Would they be in breach of contract in such a case? With reference to the case study above (Fresh Bahrain), advise Fatima and Sara on any potential personal liability they may incur as a Company with Limited Liability? Would this differ if they had set up as a General Liability Partnership
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