LAW ON OBLIGATIONS AND CONTRACTS

Ink, Inc. is engaged in the business of printing. Pay Per View, Inc. is a company that supplies printing paper to Ink, Inc. In the order agreement, Pay Per View, Inc. promised to deliver a certain quantity of paper to Ink, Inc. every month for a period of 12 months. In turn, Ink, Inc. agreed to pay Pay Per View, Inc. within a period of 120 day after each delivery. Pay Per View, Inc. has been consistently complying with its promise to deliver the orders for 6 months. However, it suddenly stopped making the deliveries, claiming that Ink Inc. has not made any payment for the past deliveries.

Meanwhile, Ink also has an existing contact with Pub Leasher which included an obligation upon Ink, Inc. for the printing of 5,000 volumes of law books. Pay Per View, Inc. was made aware of this contract. After printing 2,000 volumes, on account of the failure by Pay Per View to make good on its obligation, Ink, Inc. also thereafter failed to perform its obligation under its contract with Pub Leasher. Pay Per View filed a suit against Ink, Inc. for the value of the unpaid deliveries under their order contact. At the same time, Pub Leasher sued Ink, Inc. for damages for breach of contract with respect to their agreement.

In the civil case filed by Pay Per View, Ink argues that: (1) Pay Per View cannot validly demand for the payment of the deliveries until it has fully performed its obligation under their agreement; and (2) Pay Per View is liable to pay damages in favour of Ink for breach of contract. Are the contentions of Ink, Inc. tenable? Explain each contention.