Case-study. B owns a fruit shop. A tells B that he can supply B with 2000 kilos of apples at a price of $2 per kilo. This is a dollar per kilo cheaper than other apples that are available. When B asks A how he can supply apples so cheaply, A says that he has a licence to import fruit from New Zealand. Relying on what A has told him, B cancels his order with another supplier and contracts to buy 2000 kilos of apples from A for $2 per kilo. However, despite what he told B, A does not have an import licence. He has applied for one, expecting to get it, but his application is unexpectedly refused and he cannot legally import the cheap fruit. If B tries to enforce the agreement, will the fact that A has no licence provide A with a defence?
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