Question:

Ashly, a famous singer, contracts to sing at a summer concert organised by Albert & Co. The
terms of contract require Ashly to attend 3 days of rehearsal and 2 days of performance. Ashly
fell sick and was unable to attend all 3 days of rehearsals. When Ashly arrives on the day of
performance, Albert & Co tells her that the contract is terminated.

Discuss the legality of Albert & Co’s action in this case.

Legal Issue: Is it legal for Albert & Co to take legal action against Ashly.

Introduction:
-Actors, opera singers (excluding chorus singers), and dancers are all covered under this
agreement. Employees are covered by the terms of the Salaried Employees unless otherwise
specified. If the employee in question is rehearsing and performing in both plays at the same
time, the issue of payment must be brought to the Joint Negotiation Committee.
-The length of the engagement time must be discussed with the Actors' Association when
touring with performances produced by another theatre.The theatre has obligations to the
employee until the contract of engagement expires, even if the theater's management changes.
Similarly, the employee is still obligated to the theatre under new management if his or her
creative condition is not significantly harmed.
-Ms Ashly wishes to know whether her contract is terminated or not according to the requirement
that is written in the contract.

-
Body:
-Types of breach of contract.

● Minor breach:
It is a partial breach of contract that is less severe than a material breach, where
the innocent party is given the right to sue for damages.
● Material breach:
When there is a breach happen party “B” can ask for damages to the party “A”.
● Fundamental breach:
When the party “B” breaches the contract, then the party “A” can sue “B” for
damages and they also can terminate the contract.
● Anticipatory breach:
When the party “A” realizes that the party”B” will fail to perform based on the
contract then the party “A” can sue “B” for damages and terminate the contract with party
“B” before the breach of contract happens.
Based on this cases, we can review the discharge by frustration. If a party promises to perform
a specific act, the law will honor its promise in the principle of absolute responsibility. The
frustration applies in this case situations is impossible due to non-occurrence of event basic to
contract and where the particular state of affairs ceases to exist. According to the case, Ashly
had promised to attend 3 days of rehearsal and 2 days of performance but at that day Ashly fell
sick and was unable to attend all 3 days of rehearsals so Ashly need to take the responsibility
for her absent.

A contract is frustrated when there is a change in the circumstances which renders a contract
legally or physically impossible of performance. This is best explained in section 57(2).
Again from the example of the case of Maritime National Fish, Ltd V Ocean Trawlers Ltd we get
that frustration should be supervening and subsequent to the formation of the contract.
The effects of discharge by frustration are given below:
i) To discharge a contract immediately, but only as to the future. The contract is not void ab
initio, but only void from the time of the frustration event
ii) Again a total failure of consideration would need to be established in order that the money be
recovered it is best explained in the case of Fibrosa Spolka Akcyjna V Fairburn Lawson Combe
Barbour Ltd
In case of Ashly as a breach of frustration occurred. Albert and Co are now entitled to treat the
contract as ended and may recover the damages if possible. The innocent part still has to carry
out the obligations but may sue for damages, in which case Ashly will have to pay for the
damages. On the other hand as Albert and Co ended the contract, they are entitled to restore
any sorts of benefit received from the other party, which is mentioned in section 65

Conclusion:
-In conclusion, Ashly can be brought under the breach of frustration.

-The contract between Ashly and Albert & Co is discharged by frustration.

-When Albert and Ashly terminate the contract, they have the right to receive any
benefit from the other.

1. Abu Zahid Mojidul Islam - 1002059254

2. Guo Peiqi - 1002059583
3. Adam Mewistra - 1002058177
4. Tung Zhi Xuan - 1001953734
5. Teng Weng Lap - 1001955474
6. Bernie Chai Kar Nien 1001954484
7. Vera Chan - 1002058510
8. Tung Zhi Xuan-1001953734
9. Zhan Xianwu 1001953653