The issue is related to Law of Contract under discharge of frustration and impossibility of performance.
The fact of the case is Chef Joe entered into a contract with Ixora Hotel to be the chief judge for a series of cooking contest organized by the hotel. Ixora Hotel has paid Chef Joe RM15, 000 and agreed to pay another RM15, 000 after the contest. However, Chef Joe met an accident and suffered severe injuries as for the consequences.
Whether the contract between Ixora Hotel and Chef Joe is discharged by frustration and impossible to perform.
Whether there is a contract between Chef Joe and Ixora Hotel.
Before writing the laws,your better explain about the issue that you’d suggested:
Discharge of frustration happens when there is an unforeseen event outside of control of both parties that makes their obligations toward the contract changed. The event is not caused by either party which it is a supervening event (act of God). Neither parties contemplated or predicted the event will occur and it will make it impossible to perform the contract after the event.
The law applicable is Sec 57(2) of CA, a contract is impossible to perform after an event occurred or the person of the parties makes it impossible to perform. Personal incapacity will frustrated the contract. Case that can be refer to is Condor v Baron Knights. A 16 year old agreed by contract to play the drums for the defendant band for 7 nights per week for 5 years. The claimant suffered a mental breakdown and was told by his doctor that he should not perform more than 4 nights per week. The band dismissed him. He brought a claim for wrongful dismissal. Held of the case is the claimant's action was unsuccessful as his medical condition made it impossible for him to perform his contractual obligations and the contract was thus frustrated. Sec 66 of CA a person who had received benefits under a void contract must recovered it to other party in the contract.