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A company enters into a contract with a supplier for the purchase of some bricks to be delivered to the company by a stated date (‘the Delivery Date’). The company’s terms (accepted by the supplier) state the time for delivery is: “of the essence” (‘the Term’).
Two weeks before the Delivery Date, the supplier tells the company that it will not be able to deliver the bricks by the Delivery Date.
The company seeks legal advice as it wants to immediately terminate the contract before the Delivery Date and buy the bricks elsewhere. The type of bricks ordered are only available from another source at a higher price. The company therefore also wishes to claim damages from the supplier.
Which of the following statements best represents the advice the solicitor should give the company?
A. The contract can be terminated immediately and damages claimed from the supplier without having to wait for the Delivery Date to pass, as the Term is likely to be a condition.
B. The contract cannot be terminated until after the supplier has failed to deliver by the Delivery Date but damages can be claimed immediately, as the Term is likely to be a condition.
C. The contract cannot be terminated and damages cannot be claimed until after the supplier has failed to deliver by the Delivery Date, as the Term is likely to be a condition.
D. The contract can be terminated immediately and damages claimed from the supplier without having to wait for the Delivery Date to pass, as the Term is likely to be an innominate term.
E. The contract cannot be terminated until after the supplier has failed to deliver by the Delivery Date but damages can be claimed immediately, as the Term is likely to be an innominate term.
A - The contract can be terminated immediately and damages claimed from the supplier without having to wait for the Delivery Date to pass, as the Term is likely to be a condition.
Candidates who answered correctly: 66%
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