PROBLEM

Rafael offers catering services in Northtown, a small town in northern Ontario. Last June, Asma hired Rafael to cater a big Canada Day party at her cottage. Asma and Rafael signed a contract that stipulated that Rafael would provide catering services on July 1, beginning at 3pm and ending at approximately 10pm.

In the early morning hours of July 1, a very severe storm hit Northtown. Northtown was hit with high winds, significant rainfall, and a major thunderstorm. The storm caused considerable damage. Power to the area was completely cut off and was not restored for three days. Furthermore, the high winds and lightning strikes caused numerous trees to fall, blocking roads and taking down electrical wires. The police advised everyone to stay off the roads due to the danger.

Neither Rafael nor Asma had power. Furthermore, the only road to Asma's cottage was blocked by a tree that had come down in the storm. Rafael's catering van was also pinned under a tree that had fallen down.

Under the circumstances, Rafael was not able to provide catering for Asma's Canada Day party. (Asma decided to hold the party anyway, and a very small number of guests did attend notwithstanding the obstacles and the weather.) Asma complained bitterly that Rafael had not provided the catering services as their contract required. She has threatened to sue Rafael for breach of contract.

Rafael has come to you for advice. He knows that he did not provide the catering services, but he says that it was impossible to do so under the circumstances. He wants to know if he will be liable for breach of contract if Asma does carry through with her threat to save him. He has written a few questions for you. Answer clearly answers each of his questions.

Rafael's questions

A.What is the status of the contract between me (Rafael) and Asma, and what legal obligations (if any) remain for me to perform under this contract as a result? (2 marks)

B.What is the difference between a breach of contract and a frustrated contract?

C.In this particular case, was the contract breached or frustrated? Explain why using the law and the facts. Please start by explaining the legal principles and/or definitions that apply to this case - just the principles of law without reference to the facts. Then please apply the law to the facts of my case. Finally, please sum up your analysis to me in a brief conclusion. Here is the structure for your answer to this question:

a.Begin by stating the relevant legal principles and/or definitions.

b.Next, apply the law to these facts to provide an analysis of Rafael's situation.

c.Finally, provide a concluding statement.