Question One - Contract Law

Maximus Productions are staging a new version of Beauty & the Beast. Two weeks before opening night the lead actor John receives and more lucrative offer and tells Maximus Productions that he will not be fulfilling his contract. John has received $2,000.00 in advance of his first two weeks performance and $3,000.00 for

rehearsal time.

One week before opening night, Suzanne who plays Belle has a car accident and is hospitalised with two broken legs, she will not be able to perform for at least 3 months but demands that Maximus Productions pay her the full amount of her contract as the accident was not her fault. Suzanne has also received $2,000.00 in advance of her first two weeks performance and $3,000.00 for rehearsal time. The contract stated that she would receive a further $1,000.00 per week for the duration of the show.

Due to the loss of both lead actors Maximus Productions advises the State Theatre that it intends to cancel the show and its booking of the theatre as a result would not be able to pay the agreed rent ($10,000 per month) for the next 4 months, the original duration of the show. The State Theatre advises that it had not accepted other booking because of entering a contract with Maximus Productions.

Question:Advise all parties as to their rights under Contract Law. Advise potential remedies in all cases.

Use FIRAC method

Facts, Issues, Rules and Relevant Law, Application, and Conclusion.