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Case scenarios - need advice

Discussion in 'Contract Law' started by ac103, Dec 4, 2011.

  1. ac103 New law student

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    Hi law expertise,
    I really need some good advise on below case, i.e. the types of breach or non-performance would enable the non-performance to be excused from performing he contract, and if non-performing party is found liable for breach, what remedy would the court be expected to grant the innocent party?
    Let's discuss the issues..... many thanks.


    Question:
    A entered into a contract with B under which B promised to deliver vegetables to A for use in A’s resaurant for the period between January and December 2010.

    The price is agreed at $40,000 per week for 40 kilos of a mixture of fresh vegetables from Japan (pumpkin and cauliflower), Australia (carrots and celery) and Thailand (green vegetables).

    B performed his obligations under the contract in the month of January and February. But in March, due to floods in Australia, no vegetables are sent to HK from Australia. B substituted carrots from Japan and Malaysia for the Australian carrots. A learnt of the substitution at the end of the month after having used the carrots.

    In March, due to an earthquake in Japan, no vegetables were dispatched to Hong Kong from Japan. Pumpkin and cauliflower from Australia were used as substitutes. A reads the newspaper everyday and he should have known about the trouble with Japanese vegetables.

    In April, B announced that he would not be completing the contract due to a problem with the formation of the contract, to which he did not specify.

    I'm asked to ADVISE A
    ac103, Dec 4, 2011
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  2. Molineux Super Moderator

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    Tell us what you think, anything, and I shall offer my comments
    Molineux, Dec 4, 2011
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    admin likes this.

  3. ac103 New law student

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    I think B could exclude from the obligation as the breach of contract is due to the natural disaster, thus frastration could be apply to the contract.

    Besides, I am wondering about the foundament of the contract contains innomate terms, due to the uncertainty of the contract, I'm not sure under the circumstance that A is kind of knowing about the situations occurs. Sounds like B has no obligation. However, I do think that B should be liable for certain breach of contract and A should get reasonable remedy.

    I'm very confusing.... pls help.
    ac103, Dec 4, 2011
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  4. Molineux Super Moderator

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    Your starting point is to define Frustration . Having done that any events that are foreseeable or where one party has assumed responsibility or the obligation has become more onerous will not frustrate a contract. If the contract is not frustrated, you will go on to discuss remedy for a breach of contract. If you consider the contract is frustrated, you will discusss remedy under Law of Frustration Act.
    Molineux, Dec 5, 2011
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