Lee would like to hire a banquet room from Tang's restaurant so that Lee could hold an anniversary party for his company.The hiring fee was RM50,000 and Lee has paid RM20,000 as deposit.Upon receipt of the deposit, Tang spent all of the deposit money, i.e. RM20,000 to furnish the banquet room so that Lee could have a better place to hold his party.One day before the party was scheduled to be held, a pipe burst in the nearby kitchen, causing extensive flooding to the banquet room, which rendered the party impossible to be held.However, Tang insisted that Lee must pay the balance of the hiring fee.If not, Tang would sue Lee for breach of contract.

(i)Advise Lee of his legal position in case he is sued by Tang.

(ii)Advise the parties as to how to settle the deposit paid by Lee.

(iii)How to settle the matter of the deposit if Tang has spent RM30,000 to furnish the banquet room instead of RM20,000?

Use case law and statute, where relevant, to illustrate your answers.

(Note: the parties have not made any provisions in the contract to provide for frustration.)