Mondo Equipment Supplier (Mondo) entered into a contract agreeing to deliver a front-end loader to Jins Construction (Jins) for use in a road building project which Jins was engaged in with the City of Penticton (the City). Jins contract with the City provided for liquidated damages of $15,000 per week for every week the road project was late in completion. (Assume the liquidated damages contract is valid and enforceable) Mondo was made aware of the contract with the City and that the front end loader was to be used for that contract and of the liquidated damages clause at the time it signed the contract with Jins. Mondo delivered the loader two weeks after the date it was supposed to be delivered, and as a result Jins finished the road contract two weeks late and had to pay $30,000 in liquidated damages to the City for late completion of the project. Jins tried to locate another loader in Penticton but was not able to. Jins sues Mondo for the liquidated damages he had to pay the City. Will Mondo be liable for the damages which Jins owes for late completion of the road?

Explain by answering the following questions.

a. Identify two legal issues to be found in the facts of this case by stating each of them in the form of a question. (2 marks)

b. Name and then state the legal tests that apply to each of the legal issues you have identified. (4 marks 2 for each)

c. Make an argument for the Plaintiff (1 mark)

d. Make an argument for the Defendant (1 mark)