Naoki owns a valuable racehorse. He is going overseas for 4 weeks and enters into a contract with Mary for the horse to stay at her farm during his absence. Mary's farm includes two large paddocks each containing a dam.

The only agreed terms in the contract are that Naoki will pay $1000 for the exclusive use of the farm's two large paddocks for the 4 weeks he is overseas.

When Naoki delivers the horse he discovers that Mary's dams are completely empty and, with no other available source of water, he has to cancel his overseas trip because there is no time to find another farm where he could send his horse.

Naoki now wants to sue Mary for a breach of contract. Advise Naoki as to whether the contract has been breached.

Do not discuss the issues of remedies.

a)What is the issue you need to consider? (1 mark)

b)State the relevant legal rule or rules relating to this problem. (1 mark

c) State the main case or cases related to this problem. (1 mark)

d)Based on this information, if Mary sued Naoki for a breach of an implied term would she win in court? What is your answer - yes? or no? Explain your answer.(2 marks)