A contract binds two or more parties to fulfil certain obligations under the contract for mutual benefits and gains (McKendrick 2005). However in case of any one of the parties fails to fulfil the obligations of a contract, breach results. In this paper, I present a case analysis of a breach of contract by a concert organiser.
Molly is organising an outdoor concert called “Summer Fun” in January, and she has hired BSP as an agency to advertise its event. One week before the concert it is announced it is discovered that Lady Gaga will not be coming to Australia due to an injury. On December 1 Molly contacts Big Star Promotions (BSP) and informs them that she is terminating the agreement with them.
Answer 1: Advice to BSP
If the contractual promise is not fulfilled by any one of the parties, it results in breach of contract. This is a legal cause of action that means that a party has not honoured the promise either by no-performance or interference. The breach can vary in different situations, and some of the names given to breach of contract in business are mentioned below (McKendrick, 2005, pp. 2). In our case, BSP has been going with the agreement whereas Molly wants to cancel it. Before determining the nature of breach, we must first identify the various types of breach of contract. These are:
Minor breach - In this case, the non-breaching business party is only responsible for charging the other party with damages but it cannot sue it.
Material breach - This happens when any party is unable to perform because of which damages occur. This takes place because of economic waste or pricing.
Fundamental breach - This provides permission to the party to terminate the contract also to sue the other party for damages.
Anticipatory breach - This occurs when the other party does not perform when expected. Therefore, the other party can ask for damages and sue the other party (MacIntyre, 2008, pp. 25).
In the given case, the contract is terminated due to 'impossibility of performance'. In no way Lady Gaga may show up for the concert (Fruehwald 2009). If there was another contract between Gaga and Molly, the liability for breach arises on part of the Gaga and not Molly. Big Star Promotion should sue Gaga rather than Molly.
There are many provisions for the injured party (party that suffers loss due to non-performance by the other party) in the law to claim for relief and compensation in case of a breach of contract. When the breach of contract is not backed by justifiable and substantial reasons, the law recommends certain legal proceedings to give “relief” to the injured party. The law of contract does not withhold the party who was responsible for the breach, but it surely offers compensation to the ones who were injured as a result of inability to perform the contract by the ...