Question
Legal Problem Question 1 Luxe Events specializes in exclusive fine dining events and functions and only uses high quality, organic foods on its menus. Luxe
Legal Problem Question 1 Luxe Events specializes in exclusive fine dining events and functions and only uses high quality, organic foods on its menus. Luxe Events is having some difficulties with a new supplier, Black Bull. Luxe Events has a 12 month contract with Black Bull to supply 100 kilograms of organic, grass fed beef, each week. During negotiations prior to entering into the contract, Luxe Events informed Black Bull of its requirement for organic, grass fed beef, and explained that organic foods are central to the menus it offers. Clause 3 of the contract states specifically that the beef must be organic, grass fed beef. Clause 5 of the contract states that all deliveries must be made at the back of Luxe Events' business premises. For three weeks in a row Black Bull has delivered the beef at the front of the premises, making it difficult for potential customers to access the property for tours and function planning appointments, and creating problems for employees. Additionally, after the beef is delivered for the third week, it is discovered that the beef is not organic, grass fed beef. Luxe Events is unable to serve it over the following week, including the busy weekend period. Luxe Events is reluctant to cancel its upcoming events, as this would result in a loss of profits of $30,000. So Luxe Events contacts several other suppliers, but at short notice is only able to source suitable beef at a premium, and suffers a loss of profits of $8,000 for the week. Luxe Events is famous for its signature beef dish, and the chefs do not have enough time to present the beef dish as they normally would. As a result, Luxe Events loses a feature segment on a travel television show that was due to take place that weekend, and which was worth $5,000. Luxe Events made some inquiries about disposing of the non-organic beef and decided to donate it to a charity feeding homeless people, rather than sell it to a catering business who would have paid $4,000 for the beef. Luxe Events is furious and wants to terminate the contract with Black Bull and claim compensation for its losses. (A) Consider and discuss both clause 3 and 5 of the contract and advise Luxe Events whether there is a right to terminate the contract for breach in performance (explain why or why not in relation to each clause) (4 marks); (B) Advise whether Luxe Events may claim damages against Black Bull for any or all of its losses (5 marks).
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