Question

Mike was looking for a place to host a conference in December 2018. He finally signed a contract with Royal Adelaide Hospital to rent a lecture theatre for his conference in June 2018. However, in November 2018, the lecture theatre was on fire and completely burnt down. The repair will take at least 6 months. Is it possible for Mike to terminate the contract with Royal Adelaide Hospital and get back any deposit he paid? (10 points)

Answer 1

There is an impossibility of performance of the contract from the end of Royal  Adelaide Hospital, because its lecture theatre got burnt and it will take min. 6 months that is much ahead of the date of booking by Mike. It gives right to Mike to legally terminate the contract and claim his deposit.

Here, Royal  Adelaide Hospital can offer another venue as a lecture theatre to Mike, but it will not be legally binding to Mike to accept the offer unless mentioned in the contract. So, it is within the Mike's right to legally terminate the contract and claim his deposit.