Question 1

Genius Ltd. ('the Company') operates 20 education centres situated in Hong Kong and Kowloon. The business organizes tutorial classes for secondary school students with the aim of enhancing their ability to attain good results in the Hong Kong Diploma of Secondary Education (HKDSE). Gordon is one of the tutors employed by the Company. The tutors may be required by the Company to teach in different centres. Their working hours are 4 to 9 pm during weekdays and 9 am to 9 pm on Saturdays. The Company owns a few cars and the tutors are transported from one centre to another during the above mentioned office hours. The travelling time between the centres is treated as working hours by the Company. At 2 pm on a Saturday, while Gordon was travelling in the car provided by the Company and on the way to a centre in Hong Kong, the driver (also an employee of the Company) drove in such a careless manner that the car crashed into a bus. Both the driver and Gordon were badly hurt. Gordon was paralysed from below the waist and could not work since then. Gordon wants to sue the Company and the driver. He estimates that his claim will be about HK$5 million.

Required

Analyse the cause of action based on which Gordon can start legal proceedings and the parties he can claim for his injury. Also explain in detail how he would proceed to prove his case.

Question 2

Ramsey is a university student and is talented in playing the saxophone. He wants to obtain a Master's Degree in music. In order to save money for further studies, he entered into a contract ('the Contract') with the agent of a live band to play the saxophone five nights a week at a night club. Income from the performance was attractive. However, three weeks before he started to perform, Ramsey was infected with COVID-19 and it took him two months to recover. Ultimately, his lungs were badly damaged and he could no longer play the saxophone.

Required

a.) In your own words and with the support of relevant legal cases, explain all the circumstances under which the court will order a contract to be discharged by frustration.

b.) Based on your answer to (a) above, analyse in brief whether Ramsey can be relieved from the obligations of performance according to the Contract. Also explain in your own words sections 16-18 in the Law Amendment and Reform (Consolidation) Ordinance about the apportionment of liability between the parties if a contract is discharged by frustration.