University Contract Law Assignment: Hospitality Business Law

This assignment delves into the intricacies of contract law within the hospitality sector, addressing two key issues. The first issue examines whether the Royal Hotel can take action against a local newspaper for breaching a contract to publish a color advertisement on the front page. The analysis, referencing cases like Felthouse v Bindley and Edwards v Skywards Ltd, concludes that the hotel has grounds for a claim. The second issue concerns whether Yutaro can refuse to pay for an extra night's stay due to the cancellation of a parade. The assignment argues, based on the principles of contract formation and cases like Rose & Frank Co v Crompton Bros Ltd, that Yutaro is liable for the charges. The assignment follows the IRAC method, providing a structured approach to legal problem-solving.

Running head: HOSPITALITY BUSINESS LAW
HOSPITALITY BUSINESS LAW
Name of the Student
Name of the University
Author Note

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Issue 1
Whether any action can be taken against the local newspaper by the Royal Hotel.
Rule
In order to constitute a contract there needs to be an agreement and an offer and
acceptance is required for any agreement. When any proposal is made by a person in
consideration of something, which can be money or something of likely nature, an offer is made
and when the terms of such offer is accepted by another it is called the acceptance. The parties
would also need to have an intention of entering in legal relationship, the terms of the contract
also need to be certain. After the fulfillment of all these elements a contract can be formed and
the failure in exercising the terms of the contract would lead to the breach of such contract
(Gibson 2018).
In Felthouse v Bindley (1862) 142 ER 1037, it was held by the court that any accepted
needs to be communicated to offerer for its validity. In Edwards V Skywards Ltd (1964) 1 WLR
349 the business relationships were presumed contractual, therefore, a claimant would be able in
enforcing the agreement.
Analysis
In this scenario, a contract was created between the Royal Hotel and a local newspaper
regarding the publishing of a color advertisement of the procession of the federation’s centenary
in the front page of the newspaper. For some error in publishing the printing was made in the 5th

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page of the newspaper instead of the front page. A contract has been entered by both the parties,
however, the terms of the contract regarding the publishing of the advertisement on the front
page has been breached by the local newspaper. Thus, the Royal Hotel would be able in claiming
against the breach of contract. In this scenario, the cases of Felthouse v Bindley (1862) 142 ER
1037 and Edwards V Skywards Ltd (1964) 1 WLR 349 can be referred.
Conclusion
Therefore, it concludes that, action can be taken against the local newspaper by the Royal
Hotel.
Issue 2
Whether Yutaro would be able in refusing the payment of the second night charges.
Rule
In order to constitute contract there needs to be an agreement and an offer and acceptance
is required for any agreement. When any proposal is made by a person in consideration of
something, which can be money or something of likely nature, an offer is made and when the
terms of such offer is accepted by another it is called the acceptance. The terms of the contract
also need to be certain in order to be a valid contract; thus, a contract term cannot be something
that is uncertain (Gibson 2018). In Rose & Frank Co v Crompton Bros Ltd (1925) AC 445 it
was held by the court that a relationship of business needs to presumed as a contract.

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Analysis
In this given scenario, Yutaro extended his stay in Royal Hotel to watch the procession of
the federation’s centenary and decided to pay the charge of the extra night. However, the
procession got cancelled due to the unexpected soaring of the temperature. Yutaro immediately
decided of leaving the hotel and refused of paying the extra charge. In this case, no contract has
been formed as the term of the contract in respect of the procession was not certain, therefore,
Yutaro would not have a claim against the hotel and need to pay the extra charge to them due to
the business policy. The case of Rose & Frank Co v Crompton Bros Ltd (1925) AC 445 can be
referred in this case.
Conclusion
Therefore, it concludes that Yutaro would not be able in refusing the payment of the
second night charges.

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Reference
Gibson, A 2018, Business Law, 10th edition, Pearson, Australia.
Edwards V Skywards Ltd (1964) 1 WLR 349.
Rose & Frank Co v Crompton Bros Ltd (1925) AC 445.
Felthouse v Bindley (1862) 142 ER 1037.