Samuel Exports Pty Ltd ('Samuel Exports') is a registered corporation in Queensland,

Australia. Gerry is the sole director of Samuel Exports. Gerry is proud that his company is

the second largest exporter of live sheep in Australia.

In February 2019, Gerry received an order from Ahmed, the Managing Director at the

Shuaiba Catering Co, for 20,000 'fat' sheep to arrive in Kuwait no later than 10 August 2019.

Gerry is aware that there are two breeds of sheep commonly referred to as 'fat' sheep;

Muscat wethers and A-class wethers. But, as Samuel Exports only exports Muscat wethers,

Gerry decided not to raise this as an issue fearing that Ahmed might cancel the order.

Ahmed was unaware of this ambiguity and thought he was ordering A-class wethers.

During negotiations, Ahmed stressed that the shipment must not arrive after 10 August

2019 as the Islamic festival, Eid al-Adha (also known as the Festival of Sacrifice), ends on 14

August. The Shuaiba Catering Co must have the sheep slaughtered and prepared for a public

banquet, funded by the Kuwaiti Government, on 14 August 2019. The Shuaiba Catering Co

need at least 4 days to slaughter and prepare the sheep. Gerry agreed and sent Ahmed the

standard form contract used by Samuel Exports. Ahmed signed the contract and returned it

to Gerry. The written contract did not stipulate a delivery date that the sheep will arrive in

Kuwait.

The Australian Animal Liberation Front ('AALF') is an underground organisation that formed

in 1975 to oppose the exploitation of all animals for food, fibre, research, teaching and

entertainment. Recently, the members of the AALF have been frustrated by the lack of

progress towards the group's objectives and decided that more 'extreme' action is

necessary. The members decide to target the live export industry for economic sabotage.

On 5 July 2019, members of the AALF unlawfully broke-in to a stock yard near the

Townsville port. The stock yard was owned and operated by Samuel Exports and contained

21,000 'fat' sheep awaiting shipment the following day to Kuwait, in satisfaction of Ahmed's

order. The members of the AALF poured two bags of feed that were contaminated with pig

faeces into the feeding troughs where the sheep feed. During the operation, one of the

AALF members recorded the group's actions on a camera phone.

On 6 July 2019, the shipment of the 21,000 'fat' sheep proceeded as scheduled aboard the

MV Dorma, unaware of the AALF's actions the night before. During the five-week voyage,

1,000 sheep die due to inanition (i.e. failure to eat - sheep suffering from this syndrome are

often called 'shy feeders') and salmonellosis (infection with salmonella bacteria, which can

cause profuse diarrhoea, resulting in dehydration). Losses of this magnitude are common

and were offset by transporting additional animals. Days before arriving at the Kuwaiti port,

20,000 sheep were alive in satisfaction of Ahmed's order.

On 9 August 2019, the MV Dorma approached the port of Kuwait. However, the Kuwaiti

navy blocked the ship's passage and refused to allow the MV Dorma to dock. When Gerry

called Ahmed to discuss the navy blockade, Ahmed was very upset. Ahmed had seen the

AALF footage on YouTube. Ahmed told Gerry that he cannot use any of the sheep for the

banquet as Islamic law prohibits the consumption of pigs or any pork products. As some of

the sheep ate feed contaminated with pig faeces, and it is not possible to identify which

animals ate the contaminated feed, none of the sheep are fit for consumption under Islamic

law.

Communication broke down between Gerry and Ahmed and the 14 August deadline passed

without a resolution between the parties. News of the contaminated feed meant that Gerry

was unable to find an alternative purchaser for his sheep. After seven additional days at sea,

the sheep aboard the MV Dorma perish due to the hot weather.

Assume the law governing this contract is the law applicable in Queensland, Australia. Using

the IRAC (issue-rule-application-conclusion) method and only the principles of contract law,

answer the following questions in relation to the above fact scenario:

1. Assuming the AALF's actions had not occurred, was Gerry's promise to deliver the

sheep no later than 10 August 2019 enforceable?

2. On what grounds could the agreement between Samuel Exports and Shuaiba

Catering Co be unenforceable?

3. What legal principle best describes how this contract came to an end? In your

answer, state who incurs the financial loss for the sheep in this situation? Would

your answer change if Gerry was the secret leader of the animal rights group that

contaminated the feed?

You are required to articulate the legal issues, identify and explain the applicable legal rules,

apply these rules to the above fact scenario ('application') to arrive at a reasoned

conclusion. Do not use the words 'Issue', 'Rule', 'Application' as headings or subheadings

in your answer.