The year was 1650 and the King of Iceland passed away from illness. His first born son Edward was next in line for the crown and celebrations of the coronation of Edward were to begin in two weeks. The duchess of Greenland was looking forward to attending and booked a special room from one of the finest inns in Iceland in order to view the event. This room had a special view of the King's palace and was on the parade route for the coronation. In light of the event there was high a demand for rooms and this room was one of the best and therefore priced accordingly by the inn- keeper Henry.

The trusting duchess booked and paid for the room without a detailed contract. Unfortunately, Edward accidentally slipped on an iceberg and drowned. The coronation was cancelled.

Without a coronation to view the duchess wanted her money back, Henry the innkeeper refused. The two parties went to seek legal counsel to get the matter resolved.

1. Do you think that the contract for the hotel room was frustrated? Explain
2. Should the duchess get her money back for the hotel room?
3. What would the legal counsel have to say about the situation, could this situation have been

anticipated?

4. In your opinion how could this situation be resolved to allow for a better outcome given the circumstances?