QUESTION 3 (10 MARKS)

3.3 At a coffee shop on the 30th of April 2021, Freddy, a licensed diamond dealer, entered into a contract with Sylvia for the purchase and sale of 10 twenty one carat diamonds at a purchase price of N$ 25 000. It is agreed between the parties that Freddy will deliver the 10 diamonds to Sylvia on the 2nd of May 2021. When Freddy returned to his shop in order to package the diamonds he discovered that he had insufficient stock to meet his obligations in terms of the contract as he only had 2 twenty one carat diamonds in the safe. On the day of delivery he advised Sylvia that the contract is void because it is impossible for him to perform and as such not liable. Advise Sylvia whether or not Freddy is correct about the status of their contract.(2 marks)