Exercise 1

Tony, a dairy farmer enters into a contract with Pita for a supply 200 cartons of fresh milk every Monday to Pita's bakery. A month later, Pita went to the next town to visit an old friend Polly and found out that Polly is also a dairy farmer. He agrees to buy 200 cartons of milk from Polly every week. Tony supplies milk to Pita the following week, but Pita, who has already purchased milk from Polly, returns Tony's 200 cartons of milk to Tony. Tony becomes aware that Pita had purchased milk from Polly and sells the 200 cartons to a local supermarket and the supermarket contracts Tony to supply milk for the entire year. In the third week, Polly fails to deliver 200 cartons of milk to Pita due to an increased order from one of her old clients. Pita then asks Tony to supply milk but Tony informs Pita that there is no milk as he now supplies all his milk to the supermarket. Pita sues Tony for breach of contract. Advise Tony.

Exercise 2

Alvin has a two year contract with Mana Island resort to supply 100kg of fresh lobster for $5000 every month. Mana Island resort made a direct deposit of the payment directly into Alvin's bank account at the beginning of each month. Due to bad weather in August, Alvin could only supply 75kg of lobster. Mana Island resort agreed to accept 75kg of lobster and agreed not to enforce the terms of the contract. Mana Island Ltd then requested Alvin to supply 25kg of mud crabs instead of lobster. Alvin supplies the mud crabs. Mana Island Resort later repudiates the contract and sues Alvin for breach of contract. Advise Alvin.