Lulo Incorporation ordered 100 large trampolines (30 ft) from Jump Up Trampolines (JUT) for their indoor children's playground in Barrie, Oshawa, Kingston and Ottawa, Ontario. Lulo told JUT that they required trampolines that were enclosed to make sure the kids did not fall off and hit their head on the floor.

Lulo Inc. signed a contract that JUT would supply 100 large, enclosed trampolines at $6,000 plus HST. This cost included set up. The trampolines were guaranteed for 5 years or 1000 jumps

JUT delivered the first 10 trampolines to the Barrie playground in March 2020. Just after delivery, the COVID virus hit, and children stopped going to school and attending indoor playgrounds. JUT delivered the other 80 trampolines to the other playgrounds and demanded payment for all of the trampolines $6, 000 x 100 x 13 =$678,000.

Lulo Inc refused to pay as they their playgrounds had been shut by the government.

question

Lulo Inc argued that because they could not use the trampolines they did not have to pay but JUT said they performed the contract as it was written -who is right?

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Assume JUT was not able to obtain the rubber from Australia used in the trampolines because COVID affected supply chains and delivery.

JUT can claim that the contract is _______________________

If JUT cannot supply the trampolines, can Lulo Inc. just sit back and allow damages to increase against JUT, why or why not? _____________________________