Amanda lives in a flat in Causeway Bay and pays rent of $12,000 per month. She lives alone. As there are 3 bedrooms in the flat and Amanda is living in 1 room, she advertises in the South China Morning Post (SCMP) to sublet the remaining 2 rooms. After reading the SCMP by her sister Betty, Betty asks if she can rent one of the bedrooms. Amanda says she is very happy to have her sister to live with her and Betty orally agrees to pay rents and other miscellaneous charges. Betty then moved into that bedroom.
Two months later, Betty tells Amanda that she has found a job in Tuen Mun and immediately moved out. During the past 2 months, Betty has paid nothing to Amanda.
Advise Amanda whether (1) there is a legally binding contract, and (2) she can sue Betty for the last 2 months’ rents and miscellaneous charges.