Question 2

Mark entered into a contract with Harbor Pleasure Cruises Ltd (HPC) for the purpose of hiring one of HPC's cruise boats, The Himalaya, between the hours of 7pm on 31 December 2018 and 3am on 1 January 2019. At the time of contracting Mark advised HPC that the purpose of the hiring was so that Mark and his wife Wendy could have a romantic evening on Sydney Harbor in celebration of their tenth wedding anniversary, and so that they could also have a prime position to view the fireworks display that was to be held that evening as part of the celebrations welcoming in the year 2019.

The agreed hiring fee was $5,000, which was paid on the date of signing the contract. In return for that fee HPC was to provide the cruise boat, The Himalaya, a licensed captain to drive the boat, and a chef to give a set meal for Mark and Wendy.

When Mark and Wendy turned up at the appointed time to begin their cruise on The Himalaya, HPC advised them that they were unable to carry out their contract with Mark because they had hired the boat to another person earlier that day.

In relation to the above facts:

1. What damages, if any, would Mark be able to recover from HPC for breach of contract?

2. Does Wendy have any claim against HPC?

Would your advice in (1) above be different if, on the day that Mark and Wendy turned up to begin their cruise, they were advised by HPC that the cruise could not take place because on the previous day The Himalaya had been destroyed by terrorists?