Amritha Singh is a middle manager with Coaster Plus Ltd (Coasters), a company that designs and manufactures roller coasters for amusement parks across North America. She has been appointed one of the project managers for the design and delivery of a special roller coaster for the Ultimate Park Ltd, an American customer.A major component of the project is the steel tracking, andone possible source is Trackers Canada Ltd (Trackers).Amritha's supervisor has asked her to negotiate the necessary contract.Amritha began negotiations with Jason Hughes. Jason is a representative of Trackers, the steel tracking manufacturer willing to supply tracking to Coasters, Amritha's employer. Amrithaprovided Jason with the plans and specificationsfor the roller coaster, and they negotiated a number of points, including price, delivery dates, and tracking quality. A short time later,Jasonofferedto sell Coasters a total of 900 metres of track in accordance with the plans and specifications provided.Jason's offer contained, among other matter, the purchase price ($1.5 million), delivery date, terms of payment, insurance obligations concerning the track, and a series of warranties related to the quality and performance of the tracking to be supplied.There was also a clause, inserted at Amritha'sexpress request,whichrequired Trackers to pay $5000 to Coasters for every day it was late in delivering the tracking.

After renewing the offer several days,Amrithafor several days, Amritha contacted Jason and said, "You drive a hard bargain, and there are aspects of your offer that I'm not entirely happy with. However,I accept your offer on behalf of my company. I'm looking forward to doing business with you."

Within a month, Trackers faced a 20% increase in manufacturing costs owing to an unexpected shortage in steel.Jason contacted Amritha to explain this development and worried aloud that without an agreement from Coasters to pay 20% more for the tracking, Trackers would be unable to make its delivery date.Amrithareceived instructions from her supervisor toagreeto the increased purchase price in order to ensure timely delivery. Amritha communicated this news to Jason, who thanked her profusely for being so cooperative and understanding.

Jason kept his word and the tracking was delivered on time. However,Coasters has now determined that its profit margin on the American deal is lower than expected, and it is looking for ways to cut costs Amritha is told by her boss to let Jason know thatCoasters will not be paying the 20% price increase and will remit payment only in the amount set out in the contract. Jason and Trackers are stunned by this development.

Applying the relevant principle(s) of contract lawdiscuss the following questions:

Discuss specific applicable ways by which each party mentioned above could have avoided the contract and as well as the implications of each way identified.?