Ahmed runs an oriental and middle eastern carpet and rugs business in Toorak. His business imports hand-woven carpets and rugs from Afghanistan, Iran, Turkey and India.

Ahmed has just conducted a large mid-year stock-taking sale in his business and is hoping to replace sold stock with new stock from overseas. He has already placed an order for the stock some months ago and he now needs the carpets and rugs urgently as the sale was very successful and 85% of his stock has been sold. He knows that if he does not get the stock in on time from overseas, he is going to lose a great deal of money in sales. That means that his cash flow will be very slim and he will not be able to pay his accounts for rent on the business premises, telephone and electricity bills, employee wages, and he will not be able to make substantial payments on his overdraft with his bank.In fact, if his orders from overseas are not delivered on time to his business, Ahmed is likely to face bankruptcy.

Ahmed contacts the delivery company, ZoKwik Pty Ltd, with which he has been dealing for many years. The director and owner of this company, Margaret, has heard of Ahmed's financial problems and instead of charging her company's normal delivery fee of $2,000 per delivery, which the parties have already agreed upon, Margaret now advises Ahmed that her company cannot deliver the goods for the agreed price and that if Ahmed wants them, he is going to have to pay $5,000 per delivery.

Ahmed is very unhappy with this news and very reluctantly agrees because of his financial position.

It takes ten delivery trips for the carpets and rugs to be received at Ahmed's business and he pays the higher price for each delivery. The total payment is $50,000.

Ahmed is distressed and seeks your advice.

REQUIRED:

Advise Ahmed as to his rights under both common law and statutory law against ZoKwik Pty Ltd.