Question
Since the deal between Mark and Ryan has fallen apart, Mark decides to perform at a different nightclub. He personally signs a binding written contract
Since the deal between Mark and Ryan has fallen apart, Mark decides to perform at a different nightclub. He personally signs a binding written contract with Robert's Bar Limited (RBL), a company which owns and operates a large venue in St johns that features a bar and performance stage. The contract contains the following terms: (a) Mark will perform one night only; (b) Mark will be paid 50% of the total cover charges for that night while RBL will retain the other 50%; (c) Each customer at the performance will be charged $20 as a cover charge; (d) RBL anticipates making a profit of $5,000 on liquor sales during Mark's performance but Mark will not receive any portion of those profits; and (e) RBL will ensure the stage is equipped with Steinway audio speakers, which are very expensive and high quality. Three days before the scheduled performance, Mark meets with the manager and tells him he is having second thoughts about the performance because he is used to singing in smaller clubs. As an incentive, the manager promises to give him an extra 10% of the total cover charges for the night. Mark happily agrees. However, the next day, the manager tells Mark he is not going to be able to rent the Steinway equipment because it has been taken off the market due to faulty and dangerous wiring. Mark gets very upset and tells the manager that, because of this, he is not going to perform.
(d) Assume RBLs breach of contract entitled Mark to void the contract and claim damages against RBL. Would RBL have to pay Mark the extra 10% of cover charges? Why or why not? Would 3 your answer be different if Mark and RBL were in British Columbia instead of Newfoundland and Labrador? Why or why not?
(e) If Mark sued RBL for breach of contract, would RBL be able to rely on the defence of frustration in regard to the recalled Steinway equipment? Explain the doctrine and why or why it might not apply.
(f) Samantha is Mark's backup singer. If Mark and Samantha agreed that Samantha would get half of the money Mark earned from the performance, would Samantha be able to sue RBL for RBLs breach of contract? Why or why not?
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