Question: Save The Eanh Pte Ltd. (STE) is a socially conscious enterprise that seeks to recyzle plastic waste matenals obtained from local collection centres located


Save The Eanh Pte Ltd. ("STE") is a socially conscious enterprise that seeks to recyzle plastic waste matenals obtained from local collection centres located m Southeast Asian countries, and use them in the manufacture of a special fabric called "Corduron" which can subsequently be used in the manufacture of laboratory coats that STE sells to research laboratories around the world. STE obtains its supply of plastic waste materials from a company called Plastic Waste Collectors Ltd ("PLWC")_ Under the contract between STE and PLWC, PLWC is required to supply STE with 5 tonnes of plastic waste matefials for a total pnce of $10,000. Unfortunately, a typhoon stmck certain areas in the Southeast Asian region and affected PLWC's ability to collect plastic waste materials from its local collection centres. The typhoon persisted for a month. Coincidentally, PLWC has a buffer stock of plastic waste materials in its warehouse and is m a position to use this to hulfil the order to STE. However, PLWC decided that it would not use its buffer stock to Hilfil its order to STE, as PLWC wanted to use the buffer stock for other more profitable purposes. PLWC therefore infonned STE that PLWC was not going to fulfil the order due to the typhoom STE has already made payment of $10,000 to PLWC under the contract, but PLWC refirsed to return this sum of money, claiming that It has incuned significant expenditure in the performance of the contract. PLWC did not reveal to STE that the expenditure comprised only $6,000 for employee salaries.
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