QUESTION FOUR

Answer ALL PARTS of the following question.

Leo sells clothes via his website. He loves football.

Leo and Mark

On 10 June 2021, before the start of a major international football tournament in England, Leo signed a contract ordering 500 T-shirts from a supplier called Mark, for a price of 1,000. Each T-shirt was to have the words "ENGLAND ARE THE CHAMPIONS" printed on its front, because Leo was confident that England would win the tournament and that the T-shirts would therefore sell well.

Leo paid a deposit of 100 on the same day as he signed the contract. The contract stated that the balance was to be paid upon delivery of the T-shirts, which was to take place on 13 July, two days after the tournament final on 11 July. England played in that final, as Leo had expected, but, unfortunately, lost to Italy. On 12 July, Leo rang Mark, demanding that the contract be cancelled and asking for his deposit be returned. Mark refused to do so, and said he would sue Leo for payment of the balance.

Leo and 1966 Tours

On the same day as he signed the contract with Mark, 10 June, Leo also signed a contract with a company called 1966 Tours. Under this contract:

Leo would be provided with three nights' accommodation in a top London hotel, from 14 to 17 July. In order to secure this accommodation, 1966 Tours would pay 600 to the hotel company immediately.

Leo would be able to meet all of the members of the England squad on 16 July.

Leo would be given a guided tour of all of the major football grounds in London.

Leo would pay 2,000. 1,000 was payable immediately; the remainder fell due on 17 July.

In addition,1966 Tours would be able to advertise their tours on Leo's website for three months, from 10 June to 10 September inclusive.

On 13 July, Leo received a phone call from 1966 Tours. They told him that owing to ongoing concerns about the spread of COIVD-19, it would not now be possible to meet the members of the England squad, nor to tour the football grounds. Leo was very disappointed. He asked for his deposit to be returned and said he would not pay the balance. Following the phone call, he immediately removed 1966 Tours' advertisements from his website and prevented them from posting any fresh ones.

(a)Advise Leo whether his contract with Mark has been frustrated.

(b)Advise Leo whether his contract with 1966 Tours has been frustrated.

(c)Regardless of your conclusion to (b), assume that the contract with 1966 Tours has been frustrated. Explain the effects of frustration upon this contract.