The topic for this week is discharge of the contract and remedies

Case Study 1

The Case Study Basic Facts

Abigail Apple and Zane Banana own and operate a business called Pies Peas and

Mash which is a small business located in Devonport in Tasmania.

The business currently operates out of Abigail's home in Devonport where she and Zane make vegetarian pies for sale through both a food van and a small number of cafes based in Devonport and Launceston in Tasmania.

The business is independently owned and operated by Abigail and Zane with the help of paid employees.

Currently the business employs the following people:

1. Abigail Apple - Full time Manager and joint owner of the business
2. Zane Banana - Joint owner of the business
3. Ben Carrot - Pastry chef employee of the business
4. HeathTurnip-Driveremployeeofthebusiness
5. Bobby Beetroot - Casual employee of the business

Please read the basic facts about the business Pies Peas and Mash set out on page 4 above. Jericho Smith is one of Pie Peas and Mash's best customers. He is however very demanding in what he orders and specific as to the ingredients that goes into any pies he orders from the business. On the 12 March 2019 Jericho orders 75 Castilla Pumpkin Pies. This is one of the most expensive pies made by the business because the pumpkin used in the pies is 100 percent Castilla squash. This squash (a form of pumpkin) is hard to acquire being grown in quantity only by a few farmers in Queensland. This make the pie very light and sweet tasting and lower in calories

Abigail takes the order knowing she has enough pumpkins in stock having only received a delivery 2 days ago. She agrees to have the order ready on the 18 March and is specifically told that these pies are to be used in Jericho's boutique bed and breakfasts and for a specially catered vegan lunch he is holding on the 18 March 2019

for 200 of his richest clients. The pies are to be the main meal on the day. These clients are very particular expecting top quality food to be provided to them. The agreed price is $19 per pie for a total cost of $1425.

Ben and Barbara commence preparing the pies, but it is soon discovered that the Castilla pumpkins delivered by the pumpkin supplier (which were stored in the cool room at the back of the shop) have started to mold and some of them are useable. Abigail decides to use butternut pumpkins as well so that the pumpkin used ion the pie are 25% Castilla Squash and 75% butternut pumpkin. Abigail has done this in the past with orders for this pie and knows that previously Jericho has accepted delivery and commented on how nice the pies were.

The pies are ready for collection and Jericho sends in his son David to collect the pies. David accepts the pies and pays for them in full. On the way to deliver the pies to Jericho David decides to eat one. He immediately notices that the pumpkin used in the pie was not 100% Castilla as was expected. David rings Jericho and tells him what he has discovered and Jericho (who never tastes any of the pies) tells David to drop the pies back and ask for a full refund

Abigail now has sought your advice if she has to accept the good back and give a full refund of the purchase price of the pies. What options does she have in relation to the pies if she does take them back?

Case Study 2

Please read the basic facts about the business Pies Peas and Mash set out on page 4 above and read the fats given in Case study one above. Jericho has now returned the goods and is waiting for this refund from Pies Peas and Mash. Further he has had to order 75 more pumpkin pies from a pie making business in Hobart and given that he needs them for the lunch he is holding on the 18 March, the cost for the pies which included delivery to Devonport is $2600. Jericho is now threatening to claim this extra money from Pies Peas and Mash.

Abigail seeks your advice. Does she have to pay this additional cost for the pies bought by Jericho from the pie maker in Hobart? Jericho is also threatening to sue Abigail for a refund of the purchase price of the pies that he has had in the past that he now believes were not made of Castilla Squash. Can he do this?

Question 14

What are the major ways that a contract may be discharged?

Question 15

What is meant by 'frustration' and how has the law changed over the last twenty years in relation to this principle?