Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help needed with this problem question Facts: Pharmfast is a distributor of medical supplies. One of their key customers is Chemway Chemists who run a

Help needed with this problem question

image text in transcribed
Facts: Pharmfast is a distributor of medical supplies. One of their key customers is Chemway Chemists who run a chain of pharmacies. Pharmfast's main supplier is Medilab who is a major medical equipment importer. Each of the parties is headquartered in Sydney. Chemway needed 40,000 surgical face masks.' Chemway contracted with Pharmfast to provide Chemway with the 40,000 surgical face masks for $40,000. The contract was executed on 25 February. Pharmfast did not have any in stock in hand but Medilab did. Pharmfast contracted with Medilab to supply the face masks in two lots of 20,000 priced at $10,000 each. In the course of dealing between Pharmfast and Medilab, Medilab was always aware that Pharmfast was a distributor of goods to third parties. The contract was executed on Thursday 27 February. The first lot of masks was delivered to Pharmfast on Monday 2 March, and then on the same day delivered to the Chemway distribution warehouse by Pharmfast. The second lot of masks was delivered to Pharmfast on Tuesday 3 March. But prior to delivery to Chemway it was revealed a worker in the Medilab warehouse had been diagnosed with COVID 19 on the morning of Monday 2 March and had been working at the warehouse on two shifts over the weekend. Chemway refused to take delivery of the 2"d lot of the surgical masks. Because of the irony of a medical supplies importer having an infection control incident in its warehouse, there was wide news and social media publicity during the week. As 'Imported by Medilab' was prominent on all the packaging, both wholesale and retail customers could see the source of the masks. Because of a national shortage, surgical masks they could not be procured from anywhere else. Both Chemway and Pharmfast now have masks which might be difficult to sell and no other source of masks. Chemway could have sold out of all the masks at $5.00 each. Medilab has assured both Pharmfast and Chemway that as all the products were sealed in tamper proof packaging there was no danger to any customers. Questions: (1) What rights might Pharmfast have in respect of the transaction with Medilab? (2) What rights might Chemway have in respect of the transaction with Pharmfast? (3) Does Pharmfast have any enforceable rights against Chemway

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contract Law

Authors: Ewan McKendrick

13th Edition

1352005255, 978-1352005257

More Books

Students also viewed these Law questions

Question

A How do reversing entries simplify recordkeeping?

Answered: 1 week ago

Question

7. One or other combination of 16.

Answered: 1 week ago