Sara wanted to operate a live-bait kiosk during a week long fishing competition at Lake Katenben. Although

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Sara wanted to operate a live-bait kiosk during a week long fishing competition at Lake Katenben. Although she expected to sell some of the worms to recreational anglers, she assumed that most of her sales would be to the competitors. She entered into a contract with LJ, a local farmer, which required him to deliver 10 kilograms of worms to her each morning at 3:00 am for the seven days that the fishing competition was scheduled to run. LJ properly performed on the first day, but he did not deliver the second day's box of worms until 9:30 am. Although Sara was able to sell a small portion of the second day's shipment to recreational anglers, she sold nothing to the competitive anglers, who had all left the dock before sunrise. Sara is now in a dilemma. On the one hand, she knows that if she misses another day of trade with the competitive anglers, she will probably not earn a profit during the week-long competition. She also knows that if she discharges her contract with LJ, she can arrange an alternative supply of worms without difficulty. On the other hand, she is worried that if LJ's single late delivery does not really justify discharge, she will be liable to him in breach of contract. Should Sara attempt to discharge her contract with LJ? What if LJ's breach was caused by his difficulty in finding 10 kilograms of worms on the second night? What if his breach was caused by the fact that he was involved in an automobile accident at 2:00 am while driving to deliver the load of worms to Sara? Would it be relevant if the competition lasted one month rather than one week?

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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