Theresa Booked a Flight Ticket with Airmalaysia

Issue

Theresa booked a flight ticket with AirMalaysia to fly her from Kuala Lumpur to Melbourne on the 1st of December 2009. She has booked and paid the ticket in advance and the flight has confirmed. However, on the 1st of December 2009 the flight was cancelled and the airline was unable to give Theresa an alternative flight on same day. Consequently, Theresa was forced to put up a night in Kuala Lumpur. The next afternoon, she able to flew to Melbourne on another airline. Due to the cancellation of flight she arrived in Melbourne late and she had lost a business opportunity which causes her losing a considerable sum of money. The main issue in this question is whether Theresa able to sue for her damages.

Law and Implication

For there to be a valid contract between Theresa and AirMalaysia, there must be a proposal, acceptance and consideration. Proposal is defined in Section 2 (a) Contract Act 1950 as when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal. The moment when Theresa booked the flight ticket online with AirMalaysia, acceptance was took place, Theresa have accepted the offer proposed by Airmalaysia. Acceptance is describe In Section 2 (b) Contract Act 1950 as when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Consideration refers to what one party to an agreement is giving or promising in exchange for what is being given or promised on the other side, it must be exist in every contract. Section 2 (d) Contract Act 1950 describe consideration as when, at the desire of the promisor, the promise or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.

On the 1st of December 2009, the flight that Theresa booked earlier was cancelled and the airline was unable to replace Theresa an alternative flight on the same day. Thus, there is a repudiatory breach of contract between AirMalaysia and Theresa. Breach of contract is defined in Section 40 Contract Act 1950 as when a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirely, the promise may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance. The breach of Contract by AirMalaysia has created a problem for Theresa to look for alternative way to fly herself to Melbourne. As a result, Theresa was forced to put up another night in Kuala Lumpur due to the change of flight to Melbourne with another airline. According to Section 76 Contract Act 1950 a person who rightly