Reference no: EM132918291

Engaged couple Marina and Mark were the winners of a reality TV show involving racing other couples around Australia. They decided to use some of the winnings for their wedding. They checked out a number of venues and finally decided on the Grand Ballroom at the Hotel Grand Inquisitor. Marina and Mark signed a 'wedding package' contract with the hotel, which provided for the following:

Hire of the ballroom - $15,000

? Catering (excluding cake) - $9,000
? Wedding cake (two-tier) - $500
? Honeymoon suite (one night) - $400
? Total - $24,900

The wedding reception was a happy event. However, when it came to the time to reveal and cut the cake, Marina and Mark were shocked to learn that earlier in the day a hotel waitress had clumsily dropped the specially baked wedding cake, and because there was no time to make another, the two-tier cake provided by the hotel was in fact two sponge cakes purchased from the local cake shop. Despite their disappointment and at the urging of the guests, Marina and Mark went ahead with the cake cutting and the cake was eaten.

When the reception finally ended, Marina and Mark retired to the honeymoon suite. However, they soon discovered that the hotel was carrying out around-the-clock renovations to the nearby presidential suite to cater for an overseas dignitary who had decided to stay at the hotel. These renovations made the honeymoon suite vibrate, made incessant noise all night, and led to dust entering the air-conditioning. Marina and Mark gave up on the room at 1:00 a.m. and went and checked into another hotel. On the way out of the hotel, Mark told the night manager that the night had been a disaster and that the hotel 'would not be getting a cent more out of us'. They also said they would be talking to their lawyer in the morning.

Questions:

Advise Marina and Mark:

(a) Whether they were entitled to cancel the contract as they purported to do

(b) What damages (if any) they are entitled to recover from the hotel

(c) Whether they are able to recover the $5,000 advance that they paid the hotel.

Consider the position under common law contract principles only. DO NOT answer this question based on Statute Law (such as the Australian Consumer Law.