Instructions

Correctly identify 4 legal issues in bullet form that arise out of the fictional facts below. Do not use more space than provided for in the Answer sections of his document. Note the sample answer for the first bullet to guide you as to substance and approximate length. The TA has the discretion to raise your grade based on your participation in the tutorial.

Facts

Beta Inc. is a Canadian corporation located in Ottawa Ontario. It manufactures spare parts foraircraftengines and starts negotiations with a potential distributor located in New Delhi, India, called Para Inc.

Early in the negotiations, on October 15, 2017,it sends an email indicatingthat its pricing will be in USdollars. Almost two months later, on December 12, 2017, following further negotiations, it sends its standard template contract which obligates Para to buy 20,000 spare parts for $150,000, with the shipping date to be Mach 31, 2018. Both parties sign the contract and exchange them by email. Unfortunately, through an error, Beta forgets to show that the pricing is in US dollars and the contract is silent as to which national currency forms the basis of the contract. The contract specifies that the governing law is that of the Province of Ontario and the applicability of the UN Convention on the Sale of Goods is expressly waived.

In accordance with the contract, Beta places the goods on the ship in Montreal on March 31 2018, at which point Para wires Beta payment of $150,000 in Canadian funds. By this time, the Canadian dollar has tumbled 15% against the US dollar. Beta says that this in unacceptable and halts the shipment. Para threatens to sue as it needs the spare parts to honour a contract with the Government of India.

ANSWER

SAMPLE FIRST BULLET NO CREDIT

• The email of October 15, 2017 may not be admissible as evidence if the dispute goes to court or arbitration. . We do not know if there is an entire agreement clause. If so, it will be harder for Beta to introduce the email as evidence that the contract was intended by both parties to be in US dollars. Such a clause could make it hard for Beta to win unless Beta has other arguments.