Stellar Pte. Ltd has been getting supplies from Techno - Z Pte. Ltd. in Singapore for one of its machine parts. Techno - Z Pte. Ltd. imports its goods from a foreign source. However, of late Techno - Z Pte. Ltd. has been charging a lot, making use of a price variation clause, in the contract between Stellar Pte. Ltd and Techno - Z Pte. Ltd., which is for three years. After doing a lot of searches on the Internet, Stellar Pte. Ltd is able to source directly for some suppliers who are based overseas. However, Stellar Pte. Ltd is not

sure of the quality and hence orders a small amount online from each of the two suppliers it finally chooses. The first is Patterson Pte. Ltd. , who is based in Hong Kong. When the products arrive, they are found to be defective and are totally unusable. The other supplier is Destiny Pte. Ltd., who is based in America. When the products arrive, they are found to be satisfactory and can be used by Stellar Pte. Ltd. Thus Stellar Pte. Ltd decides to directly import from Destiny Pte. Ltd. in future and wants to terminate the contract with Techno - Z Pte. Ltd. immediately as Destiny Pte. Ltd.'s rates are much lower. However, in the meantime, Jack, an employee who has been given notice of termination orders a huge quantity of supplies from Techno - Z Pte. Ltd. the day before he leaves, just to cause Stellar Pte. Ltd a little bit of trouble.

Advise Stellar Pte. Ltd as to its rights and liabilities.