Wizard has contracted with Ace Engineering Pty Ltd ('Ace') to build the tracks of a new levitating ghost train ride. The building to house the tracks has already been built. The contract was validly formed on 1 July 2021 and contains the following provisions: Clause 1: Ace will build 100 metres of track made of neodymium magnetic alloy, following the course set out in the Ghost Train Specifications that have been provided by Wizard. Clause 2: Ace must provide weekly progress reports to Wizard. Clause 3: The contract price will be $500 000, with Wizard to pay $100 000 upfront as a deposit. Clause 4: Testing of the tracks is to commence on 1 November 2021. Clause 5: The tracks must be fully operational by 1 December 2021. Time is of the essence.

The contract was signed by both parties and Wizard paid Ace $100 000. Ace commenced building the track. After Ace had built 95 m of track there was a fire at the world's largest neodymium mine and the global price rose ten-fold. Ace is refusing to complete the last 5 metres of track. Required: i) Analyse how each term is to be characterised. ii) Ace told Wizard 'this track is as good as done' and is demanding to be paid the outstanding $400 000. Wizard told Ace 'the contract is frustrated, we owe you nothing.' Does Wizard have to pay Ace anything? If so, how much?