Question
Punsi Lalwa is a young entrepreneur desirous of engaging in the manufacture of cassava fries. Punsi decided to invest $150,000.00 to purchase a specialized piece
Punsi Lalwa is a young entrepreneur desirous of engaging in the manufacture of cassava fries. Punsi decided to invest $150,000.00 to purchase a specialized piece of equipment from Adri Star for cutting, frying and vacuum sealing the fries. The terms of the purchase were $75,000.00 down payment and $75,000.00 within 30 days of successful installation. At the same time, she entered into a contract with Ram Gobin to supply her with $150,000.00 worth of raw cassava. The equipment arrived in the country and Punsi paid a further sum of $30,000.00 to Micheal Bureaux to assemble and commission the new equipment. She had also agreed to pay Ram Gobin within 24 hours of placement of an order. Punsi visited Ram Gobin very excited after the equipment was successfully tested, with her last remaining money being a cheque of $150,000.00 to place the order for raw cassava. Ram Gobin had been quietly told by Ricardo, a supposed friend of Punsi, that Punsi was required to pay Adri Star within 30 days of successful installation of the equipment and that Punsi needed to purchase cassava as soon as possible in order to generate the required sales to pay for the equipment. When Punsi approached Ram Gobin with the cheque of $150,00.00, Ram Gobin indicated that he was no longer willing to sell the required the poundage of cassava for $150,000.00 as he now wanted $180,000.00. Punsi begged him indicating that she needed the cassava, and there was no other supplier currently supplying the market. Punis stated that without the cassava she would not be able to make the fries and generate the income to pay Adri Star, the balance of $75,00.000. Punsi indicated that if she failed to repay Adri Star within the 30-day period, he was contractually entitled to seize the equipment and forfeit the $75,000.00 deposit. Ram Gobin was not moved by her pleas and insisted on the increased price. Desperately Punsi sought to borrow money from Ronaldo, a loan shark at a very high interest rate. She then signed an amendment to the contract with Ram Gobin agreeing to pay the $180,000.00. Punsi received the cassava, processed it and made sufficient sales to pay off Adri Star. However, Punsi would like to commence legal action against Ram Gobin to set aside the amended agreement and recover monies paid for the increase in the price of the cassava.
1. What is the issue
2. What is the law?
3. Please advise Punsi.
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