Gumby EntertainmentLtd.isputting on a pantomime show at the Dinsdale Theatre in Dublin. The show is due to open on the 5th December 2019. Gumby Enterprises Ltd. have spent the last six months planning...

Case Law Scenario
Introduction
The underlying case scenario is based on discussing peculiarities of contract law, contractual norms and conditions. The case begins with the scenario faced by Gumby Entertainment Ltd in the process of preparing and producing a pantomime show at the Dinsdale Theatre in Dublin. The preparation of show production was started six months back with the hiring of theatre, booking of performers, commissioning of script, hiring leading writers and directors. The rehearsal process also started six weeks before where artists were appointed to work and rehearse for specific time period from 10 to 5pm five days in a week.
It is found that process of producing theatre show continued for longer time and included several performers, writers, directors, choreographers, and make-up and hair artist. The rehearsal took place at large scale with the estimation of around 70 performances. The producers run an extensive advertising program for this and received overwhelmed response through selling tickets within few hours. One night, before, the theatre is gutted by fire and destroyed entire building, sets, costumes and props of the production. The destruction of all facilities and equipment created difficulty for show producers to start the show at the specified time.
This inability of show producers to run and launch the show led customers, performers, and other staff members claiming their fees and refunds for the money spent by them on the ticket and other facilities. But, show directors and producers were not in the position of compensating customers or refunding funds to other staff members as all money was spent on show’s pre-production process. In short, there is no money to pay or refund customers, directors and narrators. The situation led plaintiff to claim their money, while defendant, i.e., Gumby Entertainment Ltd did not have any funds to adjust the matter or issue.
Issue
In terms of contract law, issue is to analyse or determine whether Gumby Entertainment is liable to compensate all related parties or not. If yes, what should be the compensation amount or value? And, if Gumby Entertainment Ltd is not liable to reimburse any staff or related personnel, then what would be the other option or alternative?
For answering or solving the issue, it is necessary to determine whether there are any contractual relations or terms between Gumby Entertainment Ltd and customers and performers. Have both the parties entered into any contract? What were the contractual terms and obligations that both the parties are obliged to adhere and follow? Whether there is adequate fulfilment of contractual terms and conditions by both the parties, or else, there is any loophole or gap in this process. On analysing all these aspects, it is determined whether Gumby Entertainment Ltd is responsible or liable to compensate customers and performers or not?
Rule
The contract law stipulates certain conditions to be fulfilled by both parties in order to form a valid and legal contract. These conditions are:
i) Offer: This forms the preliminary condition where one party must make an offer and other party should accept it. The contractual parties should clearly state and specify the terms and conditions to be fulfilled by the other party, and, agreed to be fulfilled. If one party agrees to the terms of the offer, and, other party sends confirmation of the same, then contract is said to be complete and valid. If any party raises objection to any of the condition of the contract, then contract could not be formed or said to be valid and legal (Paterson, Robertson & Duke, 2012).
ii) Acceptance: This forms the second main condition of the contract where both parties are required to accept each other conditions and norms. The offer becomes valid when one party makes it and other party accepts the same. The contract could not be said as complete if it is not accepted by another party. It is also necessary that party should accept the offer on the same terms and conditions as mentioned in the original offer. One party needs to ensure that other party has duly understood the condition and accepted it. If parties propose different terms and conditions, then there is no contract. Instead, it is said to be counter offer where one party propose another party, and asks first party to accept or reject the counter offer (Poole, 2016).
iii) Consideration: Another condition for formation of a valid contract which requires each party to offer and accept something in exchange from each other. In employment contract, one party agrees to pay money, and, other party agrees to provide labour. This acts a two-way street between both parties where each one is ready to give up something to get something in return (Saintier & Scholes, 2017).
iv) Mutual consent: A valid and legal contract requires both parties to form and develop a valid intention to bind by the contract. None of the party wishes to escape from the provisions of the contract. If only one party depicts or shows intention of entering into contract, then contract does not form. There is need of mutual agreement between both the parties to enter into a contract and depicts clear intention of forming it. Any kind of informal agreements do not fall into the category of contract. The courts also consider the fact whether a promise or an offer of a reward in exchange of fulfilment of certain condition creates an enforceable contract. The parties can also show implied consent to enter into an agreement, for example, a person receiving medical treatment from a doctor shows his implied intention of enter into contract with doctor for availing medical service or help. There is an implied contract that doctor should offer best possible service to the patient, and, patient should also access and accept the services (M. A. Clarke, R. J. A. Hooley, et.al. 2017).
v) Competence to form contract: Contract law requires formulation of contract by parties who are competent to contract in terms of age and legality to enter into contract. Any minor and individuals incompetent to enter into contract are not allowed to form any contract. This is believed...