On December 1, Steve, a famous singer, contracted with Allen to sing at Allen’s

Question

On December 1, Steve, a famous singer, contracted with Allen to sing at Allen’s theatre on December 31 for a fee of $25,000 to be paid immediately after the performance.
a. Steve, for value received, assigns this fee to Richard.
b. Steve, for value received, assigns this contract to sing to Elton, an equally famous singer.
c. Allen sells his theatre to John and assigns his contract with Steve to John.

State the effect of each of these assignments.

1. Highlight the pertinent facts;

2. Identify the issue of law posed by the case problem;

3. What should be the decision in the case?

4. The reasoning for such decision.

Explanation / Answer

State the effect of each of these assignments.

Answer –

1.      Highlight the pertinent facts;

Answer –

In this scenario, a contract was signed between a singers Steve with Allen to sing a song at Allen’s theatre on 31st Dec. The date of signing a contract was on 1st Dec and the singing day was on 31st Dec, almost a month time.

Then Steve wants to delegate his singing contract to Elton, a similar famous singer. At the same time Allen has sold the theatre to John.

So in this scenario, the Steve is a special skill person who was contracted for singing by Allen, so Steve cannot delegate this task, as singing comes under special skill set and Steve cannot delegate it unless a due permission from Allen.

Here Allen has also sold the theatre to John, so again a due permission is required from Steve singer to continue the contract upon selling of theatre.

So in both the case the due permission is required for continuing the contract, as there are two changes proposal from both parties.

In absence of due permission from opponent persons, the contract will not be consider a legal contract.

2.      Identify the issue of law posed by the case problem;

The first issue raised here is the delegation of singer which was not a part of contract and singer comes under special skill person hence this change in not permissible unless due permission from the other side person.

The second issue is that the change in the theatre owner, who signed off the contract with singer has sold the theatre, hence needs a due permission from singer for continuing the contract.

Issue - Changes in written contract from both parties after a period of almost one month.

3. What should be the decision in the case?

The decision in this case will be as per the contract terms if contract terms are abided. Singer change cannot be permitted unless due permission from theatre owner. Upon theatre owner change, the contract gets cancel, unless a due permission from Steve singer. The decision will be that singer cannot be delegated to Elton and new theatre owner John needs to have the contract re-signed with singer Steve or Elton.

4. The reasoning for such decision.

The reasoning for this is that the decision will be as per contract term and conditions. Upon failure of contract, penalties to be paid by the concern parties, against any legal action.

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