Activity 3 - Contract

Read the following two scenarios and provide answers, based on the Laws of Contract

Scenario 1

Flagship Motels P/L is a large motel chain operating in Victoria. It has fifteen properties, all of which have a restaurant on site. Hi-Tech Culinary Supplies Ltd is a nation-wide distributor of kitchen equipment, based in Sydney. Flagship has previously bought kitchen equipment from Hi Tech.

On 1st September 2014, Hi Tech sent faxes to all the client on its mailing list saying "We can offer the latest in ceramic toasters for $57 each - in stock now"

The motel chain had been considering upgrading the toasters in all their rooms. After discussions with the food and beverage manager, the purchasing officer for Flagship faxed back to Hi Tech saying "We will have 300 toasters. We need delivery by 15th November, 2014"

Hi Tech faxed back saying "Thanks for your request, we will process it soon"

Hi Tech then proceeded to organise the despatch of the toasters, packed them into cartons and loaded them onto the delivery van.

On 10th November, just before the van departed for Melbourne, Flagship telephoned Hi Tech to say they no longer needed the toasters.

Can Hi-Tech sue for breach of contract? Explain.

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