ExpertACCA · Question 46 · The law of obligations
Section B - Scenario 1
SCENARIO: 'AeroKelp Ltd' is a deep-sea kelp harvesting company. They contracted with 'SubmersiTech' to repair their specialized underwater drones by 1st May. SubmersiTech failed to complete the repairs until 15th May. Because of this delay, AeroKelp could not harvest kelp during peak season, losing £20,000 in standard profits. Furthermore, AeroKelp lost a highly lucrative, secret contract with a pharmaceutical company worth £100,000, which required delivery of rare kelp by 10th May. SubmersiTech was completely unaware of this pharmaceutical contract.
QUESTION: What type of breach of contract has SubmersiTech committed?
Section B - Scenario 1
SCENARIO: 'AeroKelp Ltd' is a deep-sea kelp harvesting company. They contracted with 'SubmersiTech' to repair their specialized underwater drones by 1st May. SubmersiTech failed to complete the repairs until 15th May. Because of this delay, AeroKelp could not harvest kelp during peak season, losing £20,000 in standard profits. Furthermore, AeroKelp lost a highly lucrative, secret contract with a pharmaceutical company worth £100,000, which required delivery of rare kelp by 10th May. SubmersiTech was completely unaware of this pharmaceutical contract.
QUESTION: What type of breach of contract has SubmersiTech committed?
Answer options:
An anticipatory breach.
An actual breach of contract.
A fundamental breach.
No breach, as delays are implied in repair contracts.
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