Ms. Cherry has entered into an agreement with Mr. Fox whereby Mr. Fox was to design and build a complex piece of machinery for delivery on or before 31 May 2021. The total contract price is $4 million and, as stipulated by the contract, Ms. Cherry has made an advance payment of $1 million to Mr. Fox. On 31 March 2021, when the machinery has almost been completed, Mr. Foxs factory was destroyed by fire. The machinery was damaged beyond repair. The cause of the fire has not been ascertained, although there was some suspicion that it started when inadequately maintained electrical equipment overheated. Ms. Cherry who was unable to obtain same machinery elsewhere, she asks for your advice.

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(b) Advise Ms. Cherry on her legal position and consequences