Question

A rock band was about to begin a grueling four-month world tour. The band's manager telephoned a massage therapist and said that he would like to reward the band for all their hard work on the tour by booking massages for all of the band members immediately after the last show in the tour. The therapist agreed to perform the massages at a deeply discounted rate because she secretly was a devoted fan of the band and excited to have the opportunity to meet the band members. Just before the first scheduled performance, the band's singer developed a rare throat infection, and as a result, the band had to cancel the tour at great expense. The manager notified the massage therapist that her services would not be needed. The therapist objected and demanded that the manager arrange for her to perform the massages for the band at a different time.

a. Is there a contract?
b. Was it breached?

Answer 1

a. There is a contract between the band manager and the massage thereapist because the elements of a contract (mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality) are fully satisfied. However, it is a conditional contract. The condition for executing the contract was missing as a result of the occurrence of the unforeseen event.

b. The contract was not breached. It was frustrated because an unforeseen event occurred and prevented the contract from being performed as agreed. The band manager can still rearrange the massages to be performed at a different time.

Step-by-step explanation:

Though the massage therapist heavily discounted the rate of the massages, there is still adequate consideration because she was using the opportunity to satisfy her excitement to meet the band members while at the same time collecting some fees for her work. A contract may be frustrated with the occurrence of an unforeseen event after the contract is entered, especially when the event is not within the control of the parties as in this case.