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Question - DACCF B7 CA2 Page 1


DACCF –B7 (Commercial Law)
CA 2

TERMINATION & REMEDIES


(a) State the 4 ways in which a contract can come to an end. (4 marks)

(b) Bob supplies shitake mushrooms to Chinese restauran ts. He entered into a contract
to buy 100 kilogramme of superior grade shitake mushrooms from Ah Seng for
delivery on 1 January 2011. Just before the delive ry, Ah Seng informed Bob that he
was unable to deliver any mushroom due to a severe shortage of mushrooms in the
market. As a result, Bob’s sales for the month of January fell by 40% compared with
his average monthly sales. In addition, Bob could not meet the extra demand for
shitake mushrooms for January which was the Chinese New Year s ...Read More eason. Bob’s
clients, reputable Chinese restaurants, usually pay good prices for good quality
shitake mushroom during the Chinese New Year period which is a peak period for
restaurants. (16 marks)
Discuss Bob’s right to damages against Ah Seng for his breach of contract.


(c) Further discuss Bob’s right to damages if, in the contract made between Bob and Ah
Seng, there is a clause which states that “In the e vent of delay or failure to deliver
the shitake mushrooms, the seller shall pay to the buyer compensation agreed at
$200 per day subject to a maximum sum of $10,000”. (5 marks)


Marks will be awarded for:
(i) Content :
a. Clear usage, statement and explanation of releva nt legal principles
b. Original, clear, logical and convincing discussi on on application of the laws to the facts
c. Statement of Conclusion
d. Appropriate referencing (in‐text and list of ref erences)

(ii) Number and quality of references: At least 5
(iii) Organization of answer and writing style (inc luding spelling, grammar, syntax etc). Please make sure you
use “Grammar and Spell check” functions to check yo ur submissions. ...Read Less

Solution Preview - contract is a written agreement between two parties which is enforceable in a court of law. However it can be enforceable in a court of law only if the contract must be an offer from one party to another CITATION Ros13 \l 1033 (Johnson). The party has to accept the offer and the contract must be consideration or it must be a document under seal. T

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