(a) 'A mere Increase in costs will never constitute frustration.'

Discuss.

(b) Fiona, a famous businesswoman, contracts with Grot PLC, to give a speech at their annual dinner for a fee of 2.10,000, half of it payable on contracting and the other half on the day of the speech. Fiona also asks for a case of Krug champagne which Grot agree to send to her the week before the event.

The venue for the dinner fails its safety inspection the day before the dinner is due to take place. Grot PLC made the first payment of 5,000 to Fiona but forgot to send the champagne. Later they refuse to pay the second installment or to send the champagne. Grot have ordered 1,000 worth of flowers for the tables which they cannot avoid paying for.

Advise Grot as to their rights and liabilities.