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Bambi is an Mist who makes unique sculptures from a combination of rare gems and recycled materials. He entered into a contract with Atas
Bambi is an Mist who makes unique sculptures from a combination of rare gems and recycled materials. He entered into a contract with Atas All Galleries and Restaurants ("Atas"), to sell his sculptures to Atas_ The contract does not state what Atas intends to do with the purchased sculptures. Atas wanted a simple contract so that Bambl can focus on making and delivering the sculptures. Bambi presumed that Atas could either be displaying his sculptures in its restaurants or selling them in its art gallenes_ The contract is for a period of five (5) years and provides that payment of $200,000 shall be made for each sculpture. Clause 5 of the contract states that "Bambi shall supply a minimum of one (l) sculpture every month throughout the duration of the contract" the first year of the contract, Bambi supplied a total of twelve (12) sculptures. However, in some months, he supplied no sculptures and in some other months, he supplied more sculptures on a per-month basis than were stipulated in the contract. At the beginning of the second year of the contract, Atas wrote an email to Bambi, stating as follows: "We refer to Clause 5 of the contract. As you have committed a repudiatory breach ofa condition of the contract, we hereby exercise our right to immediately terminate our agreement. " Bambi was shocked when he read the email. He had just purchased $500,000 wonh of rare gems to be used for the sculptures that he was preparing to deliver for that second addition, he recently rented a large bungalow for 12 months. He felt that the contract With Atas was bringing him an excellent stream of income and he could afford to reside in more comfortable accommodations. If he terminates the lease now, he would have to forfeit his deposit of three (3) months' rental.
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