On 1 March, Phuong and Sabine signed a contract at Sabine's offices in terms of which...

 

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On 1 March, Phuong and Sabine signed a contract at Sabine's offices in terms of which Phoung agreed to sell a Ford Tractor, 2022 model at the price of $45,000. According to the agreement, the tractor would be delivered to Sabine's office in New South Wales. It was agreed that the tractor would be sent by a ferry on 5 April and would be paid for by bank cheque when Sabine received it. Phoung spends $2,000 getting the tractor ready for delivery. However, on 3 April Phoung was informed that under regulations issued by the Commonwealth government to prevent the spread of plant diseases, the supply of goods across all the states in Australia has been prohibited. Phoung advises Sabine that he cannot deliver the tractor as promised, however Sabine insists that Phoung must make arrangements to send the tractor to Sabine's office in NSW. Phoung now has received a letter from Sabine's lawyer threatening a legal action for breach of contract if Phoung does not comply with the terms of the contract. The letter clearly states that "The contract was concluded before the Commonwealth Regulations were issued, hence our client (Sabine) demands delivery of the tractor." Required Explain the liability of Phoung under the contract. Discuss whether the contract has been discharged due to Commonwealth Regulations. In your answer, you will assume that a legally binding agreement has been made between the parties on 1 March. In your answer examine the appropriate remedy (if any) which Phoung and Sabine may seek from each other. On 1 March, Phuong and Sabine signed a contract at Sabine's offices in terms of which Phoung agreed to sell a Ford Tractor, 2022 model at the price of $45,000. According to the agreement, the tractor would be delivered to Sabine's office in New South Wales. It was agreed that the tractor would be sent by a ferry on 5 April and would be paid for by bank cheque when Sabine received it. Phoung spends $2,000 getting the tractor ready for delivery. However, on 3 April Phoung was informed that under regulations issued by the Commonwealth government to prevent the spread of plant diseases, the supply of goods across all the states in Australia has been prohibited. Phoung advises Sabine that he cannot deliver the tractor as promised, however Sabine insists that Phoung must make arrangements to send the tractor to Sabine's office in NSW. Phoung now has received a letter from Sabine's lawyer threatening a legal action for breach of contract if Phoung does not comply with the terms of the contract. The letter clearly states that "The contract was concluded before the Commonwealth Regulations were issued, hence our client (Sabine) demands delivery of the tractor." Required Explain the liability of Phoung under the contract. Discuss whether the contract has been discharged due to Commonwealth Regulations. In your answer, you will assume that a legally binding agreement has been made between the parties on 1 March. In your answer examine the appropriate remedy (if any) which Phoung and Sabine may seek from each other.

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In addressing the situation between Phoung and Sabine we must examine the liability Phoung has under the contract how the Commonwealth Regulations impact the contracts enforceability and what remedies ... View the full answer