Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Same facts as the previous question: Delegate, who planned to attend the convention of Political Party, reserved a room at Hotel for the seven days
Same facts as the previous question: Delegate, who planned to attend the convention of Political Party, reserved a room at Hotel for the seven days scheduled around the convention at the drastically reduced rate of $100 per night. The reduced rate was a special offer made only to delegates who reserved their rooms by paying $400 as an advance deposit for a full seven-night booking at Hotel. Delegate timely paid her deposit. This time, however, Hotel was not destroyed by a fire. Instead, Political Party suddenly moved its convention to another city. What statement is most true? Delegate has a valid argument that she can cancel her reservation and recover her $400 deposit based on frustration of purpose. Delegate has a valid argument that she can cancel her reservation and recover her $400 deposit based on impossibility of performance. Hotel can keep the $400 deposit as liquidated damages, so long as that amount was agreed to by the parties in their contract. Delegate will be liable for the remaining $300 of her reserved price because the parol evidence rule will prevent delegate from introducing evidence of the purpose for which she contracted with Hotel
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started