Question 2

Jerry opens a delicatessen specialising in selling sandwiches and rolls to health-conscious university students. He signs a one-year contract with Vogel Breads to supply him with bread made from organic wheat.Clause 1 of the contract specifies the quantity of bread to be delivered on certain days of the week. Also, the contract states that clause 1 "....is a condition of the contract".

On 1 April 2019, an outbreak of a virus ruins much of the organic wheat crop. Suppliescannot resume for a month. Jerry tries to find another supplier but is unable to do so. As aresult, Jerry has to close the business for the month, losing $25,000 in profit. He is also unable to fulfil a contract to supply the bread at a national scout jamboree that coincidentallyis scheduled for that week. Jerry loses$120,000 on that contract. Jerry wishes to terminatethe contract with Vogel Breads and sue for damages. Please (a) advise the parties whether Vogel has committed a breach of the contract allowing Jerry to terminate and sue for damages and (b) assuming there is a breach what damages would Jerry be entitled to?