Contract Law Problem Question
The Problem Question is:
Astrid owns a chocolate shop, Shockchocs. Easter is one of her busiest and most profitable times of year. She has placed an order with a supplier, CoCobean, for £5,000 of cocoa for delivery by the end of February, to give her time to make the chocolates before Easter.
At the start of February, a neighbouring business, ChampionHampers, has also promised to give her five empty hampers to use for her Easter window display. Two weeks later, Astrid promises £750 worth of chocolates to ChampionHampers.
A week before the end of February, CoCobean says they are struggling financially. They explain supplies of cocoa are low due to extreme weather conditions in South America from where the cocoa is sourced. CoCobean say they could supply the cocoa in time, but it will cost Astrid £6,000. Astrid refuses to pay the higher price as it would cut her profits. However, having tried and failed to find an alternative supplier in time for Easter, she reluctantly agrees to pay the extra £1,000 to CoCobean, who then supply the cocoa on time.
At the beginning of March, ChampionHampers tell Astrid they need the five hampers promised to her.
Advise Astrid on:
a) Whether she is obliged to pay CoCobean the extra £1,000;
b) Whether ChampionHampers is obliged to supply the five hampers to Astrid;
c) Whether Astrid is obliged to give the chocolates to ChampionHampers.
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