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Milky entered into a contract for the hire of 6 rooms in New Castle Hotel in Kowloon West. The purpose of the contract was to

Milky entered into a contract for the hire of 6 rooms in New Castle Hotel in Kowloon West. The purpose of the contract was to watch the fireworks gala in the Victoria Harbour on the 1st July (Reunification Day) through the windows of the rooms. Milky planned to invite her close friends and their families to stay in the 6 rooms to enjoy the fireworks. Just two hours before start of the fireworks, the Hong Kong Police Force received a serious threat from some terrorist organizations that they would launch large scale attack to the crowds who gathered to watch the fireworks. The Hong Kong Government immediate ordered the cancellation of the fireworks and gave an order that this kind of gala will not be launched at least for five years. Milky, having already paid a deposit, refused to pay the balance of the room charges. The hotel took legal action to recover the balance.

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Analyse the chance of success by the hotel and explain in detail the legal principles that you base on for analysis.

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