Reference no: EM133199993

Carefully read the scenario below.

Jerry and Nelly are friends. Jerry owns an upmarket restaurant in Cape Town and Nelly owns a farm in the Western Cape. Jerry has heard that people are greatly interested in organic foods, as a healthy lifestyle has become the new trend. Jerry knows that Nelly's farm produces the freshest vegetables and that he could significantly increase his profit margin if he contracts Nelly to supply him with fresh fruit and vegetables on a daily basis. Jerry approaches Nelly with his business offer. Nelly is thrilled at this offer, but he makes it clear that all legalities in the proposed business relation be done in the correct way to ensure that there are no issues in the future.

Question

Jerry has grown frustrated with Nelly's service, as Nelly disregards Jerry's concerns about the delays and recent poor quality of fruit and vegetables. The contract between Jerry and Nelly has been signed for a period of ONE (1) year. Jerry has a long-standing relationship with Nelly, and does not want to destroy the friendship. Jerry is curious as to the different ways a contract may terminate.

Explain and fully discuss FIVE (5) ways in which a contract may terminate. You may exclude breach from your discussion.