Breach of Contract and Claiming Liquidated Damages in Order to Compensate


Anne wanted to bring her husband and two children (5 and 7 years old) on a holiday in December. She went to her usual travel agency, Make It Happen Holidays Pte Ltd (MIHH), to make enquiries. She told them that she wanted a relaxing holiday package and emphasised that the resort must take care of all meals and activities, especially for her two young children.

Susan, a travel executive from MIHH, told Anne that she “has the perfect holiday getaway for her” and started showing Anne various brochures on Utoph, a resort in a neighbouring country. Susan said that Utoph had the “most gorgeous view of the sea, with premium resort facilities, designed to pamper you and guaranteed to relax you 200%”.

Anne was excited yet a little sceptical as she had never heard of this resort. Susan reassured her, “If you don’t believe me, check out the online forums – they all say that the resort is clean and that the bedrooms are so big that you can spend quality time with your family.

More importantly, it has a wide range of activities for children from cycling to sand-castle building. After all those activities, you can eat anytime at the 24-hour cafe!”

Anne went home and read through some online forums. Comments ranged from how peaceful the resort was to how dirty the rooms were. Some even noted that it was not suitable for families with young children. But Susan had given her only one day to decide; otherwise the special price for the Utoph package would no longer be available.

Hence, Anne decided to go ahead and book the holiday at Utoph. She called Susan and made payment by providing her credit card details over the phone. A few hours later, she received a receipt from Susan.

When Anne and her family arrived at Utoph after a tiring, dirty and bumpy ride from the airport, they saw that half of the resort was under renovation, with scaffolding and cordoned off areas. The spa was closed for the period of renovation and only one café was open from 3pm to 9pm. They walked through beautiful gardens and finally reached their bedroom which contained two queen-sized beds, a sitting area with TV and an entertainment system and a big bathroom. They heard construction noise intermittently throughout the day, often so loud that they couldn’t hear the TV nor take afternoon naps. When Anne tried to register her children for various activities, she was told that the registration list was full. She was offered a half-day city tour for her family instead.

Explain to Anne whether there has been a breach of her contract with MIHH and if yes, advise her briefly on her remedies. In your answer, distinguish the various pre-contractual statements made by Susan and determine which of such statements form part of the contract between Anne and MIHH. Support your analysis with the relevant case law, where applicable.

Summary: This question belongs to business law and discusses about breach of contract and pre-contractual statements by Anne based on the given events in the case study.

Total word count: 1435


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