Question
Brekkie Food Company (BFC) is a cafe that serves western-style breakfast meals throughout the day. They are a socially conscious enterprise and they employ employees
Brekkie Food Company ("BFC") is a cafe that serves western-style breakfast meals throughout the day. They are a socially conscious enterprise and they employ employees who are differently abled. BFC obtains their raw materials from two main suppliers. They obtain their food ingredients from a supplier called Wholesome Foods ("WF"), and they obtain their environmentally friendly disposable cutlery from another supplier called Sustainable Foodware ("SF"). BFC has a separate contract with each of WF and SF for monthly supplies to be provided by them.
WF in turn obtains their agricultural produce from farmers in the United States. Unfortunately, there was a very bad drought recently that affected crops in those regions, and as a result, WF will not be able to deliver the usual contractual orders to BFC for the next two months.
SF faced a different set of problems. They had over-committed to various customers (i.e. they did not have enough stock to satisfy all their customer orders), and they were therefore unable to deliver their contractual order to BFC for the coming month. While SF could have cancelled their other customer contracts to fulfil their contractual order to BFC, SF chose not to do so.
- (a)Examine the circumstances in the given scenario and explain if BFC's contracts with (i) WF and (ii) SF would be discharged by the doctrine of frustration. In your answer, please also briefly state the consequences of a contract that is discharged by frustration, under the Frustrated Contracts Act (Cap. 115)
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