QUESTION 6

Harry is a truck driver who has entered into a one-year contract with Chloe, a florist, to collect 500 red roses each Thursday at 4.00 am from a Sydney flower market and deliver to her Coffs Harbour shop no later than 4.00 pm on Thursday afternoon. Harry had calculated that he would make a handsome profit on the contract based on the seven hours it normally took him to travel the Pacific Highway between the two points. After much public criticism of the highways condition following several major accidents the NSW Premier announced that it would undergo major repair work near Taree and for eight months all trucks would be required to use a detour. Harry wants to be discharged from the contract for frustration and seeks your advice in the following scenarios: a) The detour adds four hours to Harrys trip which means he will only arrive at Chloes an hour before the deadline. He has calculated that the additional costs (in fuel and time) mean that he will now incur a loss on the contract. (5 marks) b) The detour adds eight hours to the trip, which means Harry, will be unable to deliver until Thursdays at 7 pm at an even greater loss. (5 marks)