Jerry owns a successful bakery caf in Nedlands, specialising in nutritious sandwiches, bagels and rolls. His weekly profit is consistently around $25, 000. Jerry recently signed a one-year contract with Vogel Breads to supply him with products made from organic wheat. Clause 1 of the contract specifies the quantity of each product to be delivered on certain days of the week. Also, the contract states that clause 1 "....is a condition of the contract". Unfortunately on the 1 November 2022, an outbreak of a virus ruins much of the organic wheat crop. Supplies cannot resume for a month. Jerry tries to find another supplier but is unable to do so. As a result, Jerry has to close the business for that month, losing his usual profit. Jerry is also unable to fulfil a contract that he won in a tender process, to supply the products at a national conference for accredited dieticians at the Perth Convention Centre that coincidentally was scheduled for that week. Jerry loses $120,000 on that contract. Jerry wishes to terminate the contract with Vogel Breads and sue Vogel Breads for damages. Using the IRAC method: (a) advise the parties whether Vogel Breads has committed a breach of the contract allowing Jerry to terminate and sue for damages and (b) assuming there is a breach by Vogel Breads, what damages would Jerry be entitled to? (You can do one IRAC answer here. In your Relevant Rules of Law, explain all the law for the issues and then apply separately a) and then b). (Note the questions are not asking whether the contract has been "frustrated" so do not raise this issue)

Answer rating: 100% (QA)

IssueWhether Vogel Breads has committed a breach of contract allowing Jerry to terminate the contract and sue for damages Relevant Rules of Law Breach ... View the full answer