ILO B1] (2 marks)

[B] Witham tendered successfully for the supply of coal to the GreatNorthern over a period on one year. In his tender, Witham undertook tosupply such quantities as Great Northern may order from time to time. Assume that the tender was on Feb 15, the winner was announced on March15 and the obligations pursuant to the tender began on April 1. Suppose thaton May 15, Witham informed Great Northern of intent to opt out and 3 days later Great Northern received the registered letter to that effect. Suppose thatGreat Northern placed the following orders on Witham on the followingdates:

Date of OrderCoal (tons)

April 12	25,000
May 3	75,000
June 18	55,000
June 30	100,000
July 15	95,000
August 12	65,000
Sept 5	85,000

If in the tender the opt out notice period is stipulated as 60 days from date of the receipt by the tender awarder as evidenced by return receipt:

[1] On what date will obligations of the tender awardee ceasepursuant to the opt out? ___________ (date) [ILO A1] (1 marks)

[2] How many tons will the tender awardee be obligated to supply the tender awarder? ____________ (number) [ILO B2] (1 marks)

[3] Assume that the tender awarder supplied no coal to the tenderawardee and plans to sue the tender awarder. How much ordinarydamages is the tender awarder likely to be awarded if, in 1873, theprice of anthracite coal in the market (PM) was $4.27 but in the tender the price was stipulated contract price (PK) of $2.77 for that year.

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