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[B]Witham tendered successfullyforthe supplyofcoal totheGreatNorthern overa periodon oneyear. Inhistender,Withamundertooktosupply such quantitiesasGreatNorthern may orderfrom time to time. Assumethat thetenderwasonFeb15,thewinnerwasannounced on March15andtheobligations pursuanttothetenderbeganonApril1. Suppose that onJune1, WithaminformedGreatNorthernofintenttoopt

[B]Witham tendered successfullyforthe supplyofcoal totheGreatNorthern overa periodon oneyear. Inhistender,Withamundertooktosupply such quantitiesasGreatNorthern may orderfrom time to time. Assumethat thetenderwasonFeb15,thewinnerwasannounced on March15andtheobligations pursuanttothetenderbeganonApril1. Suppose that onJune1, WithaminformedGreatNorthernofintenttoopt out and 3 days later Great Northern received the registered letter to that effect.SupposethatGreatNorthernplaced the followingordersonWithamonthefollowingdates:

DateofOrder Coal (tons)

April12

25,000

May3

75,000

June 18

45,000

June 30

100,000

July 15

95,000

August 12

65,000

Sept5

85,000

Sept 15

35,000

Oct 8 110,000

If inthetenderthe optoutnoticeperiodis stipulated as45daysfromdateof the receiptby thetenderawarder as evidenced by return receipt:

[1]On whatdatewillobligationsofthe tenderawardeeceasepursuantto theopt out? ___________(date) [ILO A1] (1 marks)

[2]Howmanytons willthetenderawardeebeobligated to supplythetenderawarder? ____________(number) [ILO B2] (1 marks)

[3]Assumethatthetenderawardersupplied nocoal to thetenderawardeeandplans tosue thetenderawarder.Howmuchordinarydamages isthetenderawarderlikelytobeawarded if, in 1873,thepriceofanthracitecoal inthemarket (PM)was $4.27 butin thetender thepricewasstipulated contractprice (PK)of $4.02for thatyear.

Indicate the formula for ordinary damages (DO) = _______________________ [ILO A1] (1 marks) DO=$_______________(number) [ILO B1]

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