QUESTION 3 [25 MARKS]

Imagine that Ted has to deliver goods to Fred's warehouse pursuant to a written contract, with no specified time for delivery. Imagine further that, after waiting a number of weeks for the goods to arrive, Fred terminates the contract for 'Ted's unreasonable delay and breach of contract'. Imagine finally that Ted sues Fred for damages on the basis that Fred's termination is 'an unlawful repudiation of the contract'.

a)How would a court decide each of the following?

i.What kind of term has been breached? [5 marks]

ii.Whether the delay by Ted is unreasonable? [10 marks]

b)Explain how it would make any difference if the contract had expressed a stipulated time for delivery, with 'time of the essence'? [10 marks]