Game City Pte. Ltd ("Game") entered into a contract with Robin to design

and develop a computer game called "Amazing Dream" which would be

developed in 10 stages. Payment is by progress payments upon

completion of each stage.

Robin employed his friend Tony, a specialist in virtual reality

games to do the special effects. Sometime shortly after the 4th stage

was completed, Tony had an accident and was bed ridden. As a

result he was unable to complete the special effects and had to resign

from the company.

Although payment was to be made on completion of each stage of the

development, Game had not paid Robin since the completion of the

2nd stage. Robin asked Game for the payment but was refused because Robin did not complete the contract as agreed and a

competitor of Game was able to launch a similar computer game ahead

of Game.

Just before the accident, Tony had obtained a salary advance of

$10,000 from Robin. Robin has now asked Tony to return this

money.

Identify and discuss the legal issues.