Chapman Furniture Pty Ltd enters a contract with the Leyland shipping company to use a ship for two years transporting furniture to various cities around Australia. The contract states that the ship will be "properly fitted out and maintained for full service with a well-qualified and efficient crew". When the ship arrives in Sydney for the first consignment to Melbourne the ship is in a terrible state and requires maintenance and repairs that take four months to complete. Chapman Furniture wishes to terminate the contract and use another shipping company for the two-year period.

1. Can they terminate the contract? 
2. Can they get damages? 
3. What principle of law will apply? 
4. Are there any cases that assist your arguments? 

Answer rating: 100% (QA)

Chapman Furniture may have grounds to terminate the contract if the ship provided does not meet the ... View the full answer