Question: QUESTION 2 [ 2 5 ] Read the scenario and answer the following questions: Lindiwe owns a small bakery in Cape Town. She enters into

QUESTION 2[25] Read the scenario and answer the following questions: Lindiwe owns a small bakery in Cape Town. She enters into a written agreement with Golden Grains (Pty) Ltd, a local flour supplier. The contract stipulates that Golden Grains will supply 1,000 kg of premium wheat flour to Lindiwe every month for 6 months, starting from 1 March 2025, at a fixed price of R10,000 per month. After receiving flour for the first two months, Lindiwe discovers that the flour delivered in May was of poor quality and caused her baked goods to spoil quickly. She immediately notifies Golden Grains and stops payment for that month. Golden Grains insists that the flour was within the standard specifications and demands payment, threatening to terminate the contract and sue for breach. Lindiwe is considering terminating the contract altogether and suing for damages, claiming loss of business and reputational harm. As Lindiwes legal advisor provide a legal opinion addressing the following issues: Whether Golden Grains has breached the contract, and what constitutes a material breach in this context. Whether Lindiwe is entitled to withhold payment and/or cancel the contract. Determine the legal remedies available to Lindiwe, including damages and specific performance. Discuss how the principle of good faith (bona fides) may apply. Determine whether Lindiwe has an obligation to continue accepting flour deliveries while the dispute is unresolved.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!