Mary entered into a contract in November 2020 for providing music and lighting equipment for an event organized by Classic Theatre (CT). A non-refundable deposit was paid in November 2020 by CT to Mary in the sum of $10,000. There was a balance due for the full event at a further sum of $80,000. The event was later canceled on April 2021 by CT as the main performer had an accident and was not able to perform on the scheduled date. CT sought a refund of the deposit paid and Mary refused to make payment in June 2021.
- What option is available to CT for recovery of the deposit paid and where will it
commence an action?
- Assuming CT was able to bring its claim at the SCT hearing and
the Referee dismissed the claim of CT holding that the deposit is non-refundable because CT had entered into the contract voluntarily although CT had claimed that it had not read the full contract terms. What would you advise CT on the next steps after the dismissal of its claim?
- CT, being not happy, commenced an action at the States Courts after the end of the SCT action, claiming the refund of the $10,000 deposit paid to Mary. How will you advise Mary on the action commenced by CT?
- Assuming CT decides to proceed with their claim in State Courts, where is it likely to proceed and explain if they can seek any recourse for an early settlement?
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