Rahul was a Disk Jockey at a five -star hotel. As per the contract, he is supposed to perform every weekend. (i.e. twice a week). Rahul will be paid…

CA Foundation · Business Laws · RTP · June 2024
Rahul was a Disk Jockey at a five -star hotel. As per the contract, he is supposed to perform every weekend. (i.e. twice a week). Rahul will be paid - 2,500 per day. However, after a month, Rahul willfully absents himself from the performance. Taking into a ccount the provisions of the Indian Contract Act, 1872, answer the following: (i) Does the hotel have the right to end the contract? (ii) If the hotel sends out a mail to Rahul that they are interested to continue the contract and Rahul accepts, can the hotel rescind the contract after a month on this ground subsequently? (iii) In which of the case – (termination of contract or continuance of contract) can the hotel claim damages that it had suffered as a result of this breach?

Suggested Answer and Working Notes:

The business was carried on by all or any of them acting for all. On the basis of above provisions and facts provided in the question, Mr. Ram and Mr. Raheem cannot be said under partnership as they are teachers in a school and just purchased a flat jointly. By merely giving the flat on rent, they are not doing business. They are just earning the income from the property under their co-ownership. Hence, there is no partnership between them. Therefore, Mr. Ram is liable to pay his share only i.e.1500. Mr. John has to claim the rest of 1500from Mr. Raheem.

Topics: The Indian Contract Act, 1872

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