Mahmud was in a business of hiring boats to people for fishing and leisure sailing. Under the standard contract, the boat hire was not only for the boat but also the relevant licence. It also provided for additional items such as binoculars and maps of local scenic areas with walking trails and restaurants.
In January, Eddie entered into a contract with Mahmud to hire a boat for one week in the summer paying 50% of the price in advance. In March for the first time ever, the local authority limited the number of fishing licences being issued. Mahmud was only given a small number of licences and decided to offer them to his customers on a first come, first served basis. When Eddie arrived, Mahmud told him that all the fishing licences were used/ assigned to other hirers. Eddie was furious because the only reason he hired the boat was for fishing. Mahmud said that there was nothing he could do as it was out of his control. Eddie refused to go ahead with the boat hire and told him he would be suing for the return of his deposit.
Advise Mahmud as to what his legal position is under the law of contract with respect to his contract with Eddie. .
