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Plantation Green Limited is a major producer of processed coffee. On the 17 July 2018, it agreed to sell 200 kilograms of coffee to



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Plantation Green Limited is a major producer of processed coffee. On the 17 July 2018, it agreed to sell 200 kilograms of coffee to Grey-Drinks Restaurant. Both parties are located in X country in the South Pacific. The price of the 200 kilograms has been fixed by the agreement. The 200 kilograms of coffee have been packed in 4 bags, each weighing 50 kilograms. The 4 bags of coffee were then loaded into a truck belonging to Plantation Green Limited for onward transmission to Grey-Drinks Restaurant, at a distance of 100 kilometres away. Grey-Drinks Restaurant was notified of the deliver of the 200 kilograms of coffee. In the meantime, Grey-Drinks Restaurant had found a cheaper source of coffee supply and has just telephoned Plantation Green Limited to inform it that it no longer wishes to pay the price of the 200 kilograms of coffee. (a) Advise Plantation Green Limited. (10 marks) (b) How would your answer differ from (a) above, assuming that Grey-Drinks Restaurant had taken delivery of the 200 kilograms of coffee but discovered that the quality was below their expectation. (5 marks) Answer ALL parts in this question. Delta Traders is a distributor of cosmetic goods in X country in the South Pacific. Delta Traders operate a current account with Siplo Bank Limited. On the 10th of April 2018, Delta Traders made three deposits by cheques into its current account. On the 17th April 2018, Fresco Cosmetic Ltd, a major supplier of goods to Delta Traders wrote to Siplo Bank Limited asking it to provide a financial reference of Delta Traders. Fresco Cosmetic Ltd is planning to increase their volume of supplies to Delta Traders but need to establish whether Delta Traders is in a position to pay for the order of goods. Delta Traders have defaulted some suppliers in the past, but since all the other cosmetic outlets have closed; Delta enjoys monopoly in the country. A junior bank officer was asked by the manager to prepare the financial reference. The bank officer hurriedly printed out the statement of account of Delta Traders and mailed it by post to Fresco Cosmetic Ltd. He later telephoned Fresco Cosmetic Ltd to say that "As the Bank officer who just sent you a statement of account regarding your request for financial reference of Delta Traders, I also wish to inform you that in spite of the state of account of Delta Traders, my bank will pay cheques drawn by Delta, as they have been one of our long standing customers." When Fresco Cosmetic Ltd presented a cheque as the payee, drawn by Delta Traders, Siplo Bank Limited refused to honour it. Advise: (a) Delta Traders, (b) Fresco Cosmetic Ltd on their rights, if any, and (c) Siplo Bank Limited on any defences it might rely upon. (5 marks each)

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