Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TermiFab is a steel fabrication business operating in Adelaide. The business is owned by Pedram. The business has a current 10-year lease of the factory

TermiFab is a steel fabrication business operating in Adelaide. The business is owned by Pedram. The business has a current 10-year lease of the factory where its manufacturing operations are run. Pedram has just been awarded a contract to supply steel frames that will be used in the building a commercial shopping centre in the Adelaide CBD. Under the contract, Pedram will start supplying steel frames to the shopping centre developer in 90 days. The construction period is estimated at 24 months, and Pedram is expected to supply steel frames for 16 of those months. Two months before the delivery date of the first supply of steel frames to the shopping centre developer, the South Australian Government compulsorily acquires the site of Pedrams factory. The factory happens to be along the route of a new tunnel link system that the government will start building. 4 Pedrams lessor advises him that he has to leave the premises within four months as provided by the lease contract. Pedram now has a massive problem: he must find new premises for his factory, and it might be another two to four months to establish the factory before it can start making steel frames. It is now clear that he cannot deliver the first supply of steel frames to the developer in time. Pedram comes to you for advice. You are expected to advise on whether his contract to supply the steel frames with the shopping centre developer can be discharged by frustration. You must cite relevant provisions of law and cases in support of your answer. (Maximum 650 words)

Legal problem-solving questions must be answered using the IRAC (Issue, Rule, Application and Conclusion) method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-30

Authors: David Haddock, John Price, Michael Farina

16th Edition

1260247902, 978-1260247909

More Books

Students also viewed these Accounting questions

Question

Is this the best time to buy?

Answered: 1 week ago

Question

What is Agency Problem ? explain with example .

Answered: 1 week ago

Question

What is the major competition for your organization?

Answered: 1 week ago

Question

How accurate is this existing information?

Answered: 1 week ago