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Can they terminate the contract and can they get damages

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Reference no: EM133504895

Case Study: Chapman Furniture Pty Ltd enters a contract with the Leyland shipping company to use a ship for two years transporting furniture to various cities around Australia.

The contract states that the ship will be "properly fitted out and maintained for full service with a well-qualified and efficient crew".

When the ship arrives in Sydney for the first consignment to Melbourne the ship is in a terrible state and requires maintenance and repairs that take four months to complete.

Chapman Furniture wishes to terminate the contract and use another shipping company for the two-year period.

Question: Advise Chapman Furniture

  • Can they terminate the contract?
  • Can they get damages?
  • What principle of law will apply?

 

Reference no: EM133504895

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