In developing and implementing a business plan, your client needs to understand Australian contract law. To manage commercial and legal risks, business people need to recognise the legal obligations created by the common law of contract in creating a legally enforceable contract. Your answer in Part C must answer the following two questions.

$1.$ Terms of a contract and remedies

Daniel requires advice on how to identify and manage the commercial and legal risk associated with entering business agreements as he is unfamiliar with Australian contract law. You must advise Daniel how contract terms and remedies impact business arrangements.

In Part C$\mathrm{.}1$ of your report you must:

$1.$ Identify one legal reason and one commercial reason why Daniel needs to understand the terms of contracts entered into by Robusta Coffee Pty Ltd$.$

$2.$ Evaluate the legal differences between the classification of a term of a contract as either a condition or a warranty. In your answer describe each type of term and identify the relevant legal remedies available for breaching that type of term. Your answer must be supported by common law of contract legal principles and cases. Do not discuss statute law.

$3.$ There are multiple forms of dispute resolution for resolving commercial disputes. Describe litigation and mediation. In your answer describe the feature of litigation and mediation. Then, evaluate the benefits and limitations of both litigation and mediation.