Question
Ellen is a jazz singer who performs across the country. She personally signs a contract with Danny's Bar Limited (DBL), a company which owns and
Ellen is a jazz singer who performs across the country. She personally signs a contract with Danny's Bar Limited ("DBL"), a company which owns and operates a large venue in St. John's that features a bar and performance stage. Under the terms of the contract, Ellen will perform on one night and will be paid 50% of the total cover charges for the night. DBL will retain the other 50%. In addition, the contract provides that DBL will ensure a minimum of 100 seats in the venue will be available to customers attending Ellen's performance. They also agree in the contract to charge each customer $20 as a cover charge. DBL also expects to make a profit of $10,000 on liquor sales during Ellen's performance. 2 (a) A week before Ellen's performance, the manager of DBL calls Ellen and tells her he will only be providing 90 seats at the venue because DBL will be short-staffed on the night Ellen performs. Ellen is disappointed and tells the manager she wants to cancel the performance but the manager insists she go through with it, telling her it is too short notice for him to book another performer. If Ellen decides not to perform on the basis that DBL breached its obligation to provide 100 seats, would DBL have any claim against her for breach of contract? Why or why not? If so, what amount of damages would DBL likely be awarded?
(a) If Ellen cancels her performance and DBL sues her for breach of contract, would DBL likely be successful in claiming damages against her for pain and suffering? Why or why not?
(b) Ellen agreed to give Lisa, one of her backup musicians, half of the money Ellen got under Ellen's contract with DBL. If DBL provides only 90 seats at its venue, can Lisa sue DBL for its breach of contract? Why or why not?
(c) Assume Ellen decides to go through with the contract. Lightning strikes DBL's venue two days before her show and the building burns to the ground. Ellen sues the company for breach of contract, in failing to provide the venue for her performance. Discuss the primary defence DBL could raise in court to avoid liability for breach of contract.
(d) A party that suffers damage as a result of a breach of contract committed by another party has a legal duty to take reasonable steps to minimize their losses. What is the name of that duty?
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