LAW0115: Jonathan Choi lost his job after his food and Beverage Company Wound up due to the Covid-19 circuit Breaker Restrictions: Business Law Assignment, SIT, Singapore

Jonathan Choi lost his job after his food and beverage company wound up due to the Covid-19 circuit breaker restrictions. Fortunately, Jonathan Choi managed to find a part-time job with Deliver-2U2 Pte Ltd (“Deliver-2U2).
Deliver-2u2 is a restaurant that successfully transformed its business model into a fully online food delivery service catering to its huge number of loyal customers who continued to work from home. Jonathan signed a contract with Deliver-2U with the following terms:

1. Contract shall be for a period of 2 months starting on 1st March 2021.

2. Jonathan Choi shall collect food packages from Deliver2U2’s restaurant every morning at 8 am, 11 am, 5 pm, and 8 pm.

3. Deliver2U2 shall pay Jonathan Choi $5 for every food package successfully delivered.

4. Deliver2U2 shall compute the total delivery made by Jonathan at the end of the month and pay Jonathan by the 5th day of the following month.

During the end of the first month, Jonathan Choi managed to make 400 deliveries. He worked very hard and was looking forward to the second month.

However, on the 1st April 2021 at 6 am, Jonathan Choi received the following WhatsApp message from Joseph Lee, the manager of Deliver-2U2:

“We are sorry to be the bearer of bad news. Our restaurant will be closed with immediate effect due to an unfortunate incident. A car has crashed into the restaurant at 5 am causing massive damage to the restaurant. We will update you on a regular basis. Joseph Lee, manager of Deliver-2U2.”

Jonathan Choi thought it was an April Fool’s joke and just ignored it. However, Choi arrived at Deliver-2U2 restaurant and saw the massive damage to Deliver-2U2’s restaurant due to the accident. He saw videos on social media in which a car was speeding along the road followed by a loud crash sound. There was news that the car crashed into Deliver-2U2’s restaurant and caught fire. Fortunately, the driver and 4 passengers managed to escape before the car exploded.

Advise Jonathan Choi on the following:
(a) Explain the 4 ways in which a contract may discharge.

(b) Discuss the LEGAL PRINCIPLES concerning the discharge of the contract due to the destruction of Deliver-2U2’s restaurant, APPLY the legal principles, and CONCLUDE on Jonathan Choi’s right to claim $2,000.