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Mr. Farhad is the owner of Farhad Unique Rugs (FUR), a carpet shop at BT Plaza. He imports high quality and durable oriental carpets from
Mr. Farhad is the owner of Farhad Unique Rugs ("FUR"), a carpet shop at BT Plaza. He imports high quality and durable oriental carpets from Turkey. The unique handmade double knotting Turkish carpets are especially popular and in high demand. On Saturday, Mr. Kanye East read an article in "Singapore Antiquing and Collecting Magazine" in which Mr. Jared Lee, a carpet connoisseur, highly recommended Turkish carpets from FUR. Mr. Kanye East visited FUR on Sunday morning and was personally greeted by Mr. Farhad. Mr. Kanye East selected a 400 knots per inch silk carpet and paid a deposit of $1,888 with the balance of $3,000 to be paid on Monday when the carpet is delivered to the house. Soon after Mr. Kanye East left the shop, Mr. Farhad instructed his workers to place Mr. Kanye East's carpet in the van for delivery on Monday morning. The van was parked in BT Plaza's basement carpark. Dark clouds rolled in on Sunday afternoon followed by a heavy downpour. The basement carpark in BT Plaza was flooded. The water level rose and went inside the vehicles in the basement carpark. The carpets in Mr. Farhad's van were destroyed resulting in several thousand dollars' worth of damage. The Meteorological Service Singapore reported that it was the wettest month in more than 40 years and attributed it to a phenomenon known as the Ocean Dipole. Advise Mr. Kanye East on the following: (a) Explain the 4 ways in which a contract may come to an end including the definition of discharge of a contract. (10 marks) (b) Discuss the LEGAL PRINCIPLES concerning the above case study. APPLY the legal principles, and CONCLUDE on whether Mr. Kanye East could treat the contract with Mr. Farhad as discharged and recover the $1,888 deposit. (35 marks)
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