Question

Liza rented a suite in order to watch the wedding of Prince Atiq and Odelia, a famous celebrity in Malaysia. She paid an advance of RM5,000 to the owner of the suite. However, the wedding was called off due to the illness of King Shahibuddin. Explain whether Liza has right to claim the advance money from the owner of the suite under the law of contract.   

Answer 1

In cases of genuine persistent illness or injury and the other party becomes incapable of performing their obligations under the contract , it is a case of frustation of contract. The law prevents any forfeiture of prepayment under the frustated contracts clause and the other party can recover the sum paid since the other party failed to perform the contract. In this case Liza Liza has right to claim the advance money from the owner of the suite under the law of contract.