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First Principles of Business Law |
| Performance and breach of contract |
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6. Risk and Frustration |
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6.5. Taking the risk of changed circumstances |
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Read the facts and the question and then choose the best answer. A, supplier of grains in NSW, agrees to sell 5,000 tonnes of wheat to B, a miller, for $250 per tonne. But just when sunny weather is needed to ripen and harvest the crop, an unusual shift in weather patterns causes widespread rain in Australia and the national wheat crop is devastated. There is insufficient wheat in the country to meet demand. Imported wheat costs twice the price. A tells B that in these changed circumstances he cannot perform the contract. In these circumstances has performance of the contract has become frustrated? |
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