Tom owned several outdoor furniture stores across Sydney suburbs and NSW towns.Tom imported most of his furniture from Kiwi Pine Ltd (KPL), a New Zealand company with a world- wide reputation for the quality of its furniture made from radiata pine.Tom signed a contract with KPL for the supply of $100,000 worth of furniture. Upon signing the contract, Tom paid a deposit of $10,000 to KPL.

Shortly after the contract was signed, it was reported in the media that KPL treated its radiata pine products with a chemical which made the furniture highly flammable.The NSW parliament immediately passed a law prohibiting the sale of KPL products.Tom then advised KPL he could no longer accept the supply of its furniture products.KPL insisted that Tom must continue with the contract as the NSW parliament had no right to ban the sale of its products. Tom refused and demanded a refund of the $10,000 deposit.

Advise Tom of his legal position regarding the contract with KPL.Give reasons for your answer using IRAC method. Support your reasons by referring to appropriate legal rules and case law.