Question $3$

$(14$ marks$)$

$3\mathrm{.}1$ Peter opened a new coffee shop. He purchases his coffee beans from a supplier from Ethiopia. Gabriel approaches Peter to rather buy the coffee beans directly from him. He further threatens that if Peter does not enter into an agreement with him something might happen to Peter's family. Peter is aware of Gabriel's connection to a dangerous gang and to protect his family, Peter signs a contract with Gabriel to supply him with coffee beans at a higher price than what he is currently paying for the next twelve $(12)$ months.

Answer the following:

$3\mathrm{.}1\mathrm{.}1$ Discuss the requirements for a valid contract.

$(5)$

$3\mathrm{.}1\mathrm{.}2$ Referring to the case study evaluate whether a valid, enforceable contract was concluded and what Peter would have to prove to avoid liability for performance in terms of the agreement. Also, indicate what remedies Peter would have at his disposal under these circumstances.

$(9)$