In December, Charles contracted with Lucy for a shipment of 15,000 Florida roses to be shipped to Toronto from Miami, Florida in the first week in February. Because of a regional hail storm in January, Lucy's growers in Miami were not able to provide any roses and Lucy could not obtain sufficient quantities from other suppliers in Miami to meet all of her contracts. Lucy arranged for a shipment of roses from Cuba from which she supplied Charles. When the shipment arrived in Toronto, Charles initially accepted it, but, when he discovered that the roses came from Cuba he immediately advised Lucy that he would not pay and was returning the roses because she had lied, or neglected to tell him the roses were from Cuba. Charles claimed that he would never sell "Cuban" roses even though the variety was identical to that grown in Miami. In fact, Charles had arranged for an alternate source of supply at a 25% discount and was looking for a way out of the contract. Lucy sues Charles for breach of contract.

Required:

(i) Discuss the issues which will be raised by the parties, the applicable principles and likely result of the litigation.

(ii) Assume that Lucy was unable to make arrangements for the importation of Cuban roses and Charles had no alternate source of supply. Charles sues Lucy for lost profits of $45,000.00 and expenses of $1,000.00 that he had incurred to advertise a "Valentine's Special" since he had no roses to sell. Lucy claims that she has no liability since the hail storm was unforeseen and it was not her fault that the roses were not available. Examine the issues that will be raised, the applicable principles and likely result of the action.