First Principles of Business Law
Performance and breach of contract

3. Discharge of a contract by performance

3.2. Specific performance

 

 

 

Read the facts and the question and then choose the best answer.

A, a miller in New South Wales, agrees to pay $50,000 to B, a wheat farmer in Victoria, for a purchase of 1,000 tonnes of wheat. The wheat is to be delivered within three weeks. Within the agreed time, B supplies A by purchasing and delivering 1,000 tonnes of Canadian wheat that unexpectedly becomes available very cheaply.

Has B performed his obligations under the contract?

(a) Yes. The contract is simply for 1,000 tonnes of wheat and any wheat will do.

(b) No. When a wheat farmer sells wheat, he must deliver wheat grown on his own farm.

 

 

 

 

 

 

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