Question
Sonnic Transportation Limited (Sonnic) entered into a contract with Ho Mang Limited (Ho Mang) which Ho Mang agreed to ship Sonnic's goods from Hong Kong
Sonnic Transportation Limited (Sonnic) entered into a contract with Ho Mang Limited (Ho Mang) which Ho Mang agreed to ship Sonnic's goods from Hong Kong to Ireland.Ho Mang arranged to ship the goods through the Suez Canal.
Before the shipment date, a war broke out in the Middle East.The Suez Canal was therefore closed to shipping.The only way to ship the goods was by sailing round Africa.This would substantially increase the costs of shipping.Ho Mang would lose money by shipping the goods through that route.
Ho Mang wanted to argue that the contract was frustrated and therefore cancelled because of the closure of the Suez Canal.
Required:
Advise Sonnic (word limit: 200).
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