1. Sam Sleaze and his wife, Suzy Sleaze incorporated 2 companies. They are the sole shareholders, directors and officers of both.Sleaze and Sleaze Resort Inc. ("S & S")purchased an acreage with 10 cabins on it - all the cabins were in very poor condition. S & S hired Chris to renovate all of the cabins which S & S are intending to rent as vacation rentals.

1. Sleaze Two ("S2")holds all monies to be invested in the resort. When Chris sends in an invoice S2 transfers money into the bank account of S & S.
2. Chris completed the renovations with a high quality service but was still owed one-half of the contract price when the cabins burnt down and S & S had no fire insurance on the land or the buildings. S & S refused to pay the balance and Sam and Suzy tell him that S & S has no money to pay him.Who will Chris sue? (1 mark)
3. What is the legal issue? (1 mark)
4. What is the Rule of Law that applies? (1 mark)
5. What will be the outcome and why? (2 marks)