Contract Law

a) Ben contracted in early July to supply Callie with gourmet coffee for Callie's new cafe. He was supposed to deliver 100 kg of gourmet coffee powder for 100 in 3 months' time on the 31st of October in time for opening in early November. In view of the shortage of coffee supply. Ben subsequently wrote to Callie advising that he would be unable to supply on the agreed date at the contracted price. Callie replied that she would get her gourmet coffee elsewhere. She managed to find another supplier, Kevin who agreed to supply the same quantity at 130. Callie is now suing Ben for the difference between the contracted price and what she had to pay Kevin. Advise Ben. (50 marks)

b) Assume that instead of saying she would obtain the gourmet coffee elsewhere, Callie refused to accept Ben's repudiation and demanded that Ben performs and delivers on the agreed date. The price of gourmet coffee dropped, and Callie then found she could obtain gourmet coffee from Kevin at 80 below the price of her contract with Ben. Ben is now happy to honour his contract with Callie. Advise Callie.

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