Analyse the given situation before you start writing your coursework paper. Answer the set
tasks in a well-organised manner.
Situation
In January 2020, the purchaser/vendee (*Abdullah Buyer) signed a contract to purchase *Agua Hotel from
the vendor (*Hassan Seller ) for *OMR 4Million including a deposit of *OMR 250,000 (the sale contract).
According to one of the provisions of *their sale contract, the hotel had to carry on the business in the usual
and ordinary course as regards its nature, scope, and manner until the completion of the sale. … This
effectively meant that the *Agua Hotel had to be transferred to *Abdullah Buyer in a state where it was able
to meet all its financial obligations. Essentially, *Hassan Seller had to maintain the hotel in the usual
manner until the sale was complete.
One week before settlement, *due to the surge of COVID-19 infections the government introduced public
health orders, forcing the hotel to modify its business. It had to rely on takeaway business and
accommodation only.
At settlement, *Abdullah Buyer argued that the sale contract was frustrated because the public health
orders meant the business could not operate in the “usual and ordinary manner” *as stipulated in the sale
contract; *thus, he is not going to proceed with the purchase. *Hassan Seller issued a Notice to Complete
and then a Notice to Terminate when *Abdullah Buyer refused to complete the sale. *Abdullah Buyer filed a
civil suit for the return of its deposit….
Source: Capati, M., & Dwyer, P. (2022). Australia: Frustration of contract due to COVID-19: Special leave to the High
Court granted. Available: https://www.mondaq.com/australia/contracts-and-commercial-law/1235172/frustration-of-
contract-due-to-covid-19-special-leave-to-the-high-court-granted. Accessed: 15 October 2022
Tasks:
- Introduction. Provide a concise outline of the given situation. Ensure that the objective(s) of your paper is also provided in the last paragraph of your introduction. (500 words)
- Discussion. Based on the given situation, assess whether * Hassan Seller is entitled to terminate the sale contract. Assess whether the action of *Abdullah Buyer is an appropriate defence for his side. Provide a clear explanation of your answer. (900 words)
- Justify. Based on your assessment, justify and support your answer with commercial companies’ laws, related literature, decided cases, principles, and/or theories. (1000 words)
Sample Solution