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LGST101 BUSINESS LAW

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Questions:

Tommy is magician who was engaged by a private school, Success Infinite Now Pte Ltd (“SIN”), to perform at SIN’s open house. The Managing Director and majority shareholder of SIN is Johnson. Tommy and Johnson were full-time Lecturers in the same university 5 years ago. They had known each other for about 3 years when they were lecturing in the university. They resigned from the university to pursue their passions.

Tommy was very happy to be able to help his friend Johnson in SIN’s open house. He trusted Johnson and signed a contract to perform without negotiating his fees. The terms of the contract required Tommy to attend 2 rehearsals 3 weeks before the event.

During the first rehearsal, Tommy was unhappy with the organising committee. The organising committee was organising the event for the first time. The rehearsal was totally disorganised.

During the rehearsal, Tommy spoke to another performer, Terry the Juggler. Tommy realised that Terry’s performance as only 20 minutes and he was paid $2,000.00. Tommy was to perform for 60 minutes and his fees was $1,000.00. Tommy walked out of the stage and left his magician props unattended. He contacted Johnson on his mobile phone and said that he found out about Terry’s fees. He also said the following:

“Johnson, you are my friend and I trusted that you would be fair and reasonable to me. You have underpaid me for my performance. I am not going to come for the next rehearsal or the open house. I will make myself disappear.”

Tommy did not give Johnson a chance to reply. He went back to the stage to collect his magician props and realised that it was badly damaged by the student volunteers who moved the props to the side of the stage.

Advise Tommy on the following:-

1. Discuss the relevant elements in the formation of a contract with regards to the following facts:

  • Both Tommy and Johnson were friends before they entered into the contract.
  • Tommy’s fees of $1,000 as compared to Terry the Juggler’s fees of $2,000.

2. Whether Tommy is entitled to claim for compensation from SIN with regards his props which were damaged by the student volunteers. You may assume that SIN will be responsible for acts by the student volunteers and that the contract does not have any express terms that SIN will be responsible for any damage to the performers’ property during the rehearsals or open house.

3. Will your answer to (b) be different if the contract has the following clause:

“SIN does not accept the responsibility for any loss or damage the performer or his property howsoever caused during the rehearsals or actual open house. The performer is to take care of his property at all times.”

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