Rusty333
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Go 4 Gold Pty Ltd (G4G) manufactures a range of sports-themed T-shirts. Arun opened a Pop-up’ (temporary) store in Parramatta in June 2016, Selling souvenirs for the Rio Olympic Games. In March 2016, before opening his store, Arun ordered a range of T-shirts bearing the Olympic logo from G4G. Arun thought these items would sell well in his store, particularly just before and during the Rio Olympic(5-21 August, 2016). Arun spoke with G4G’s sales assistant, Anna, on the telephone when placing his order and managed to negotiate a special price for the T-shirts with her. The T-shirts were originally priced at $5 each, but Arun negotiated an arrangement with Anna to pay $3 per T-shirt by agreeing to order 1,000 of them. Before finalizing the deal over the telephone, Arun remembered that the Olympic logo can only be used by authorized traders. He asked Anna about this and she told him G4G is authorized to use the Olympic logo and to supply items with the logo on them. Anna emailed a sales order which stated the price per T-shirt ($3.00 per unit). The number ordered (1000) and that the T-shirts would be delivered ‘on or before’ May15,2016. The oreder form was not very detailed and, apart from this information. The G4G company logo and the product code for the T-shirts, it did not contain any other information. Arun signed the order form and emailed a copy back to Anna on 30 Mrch 2016.

The next day 31 March 2016. G4G discovered that they did not have the necessary authorisation to use the Olympic logo after all, and that it could take them several months to get it. G4G hoped they could still get authorization before the Rio Games began, so they called all the people who had ordered T-shirts to advise them there would be a delay. Arun agreed that he would still accept the T-shirts if they were delivered before his store opened on 3 June 2016. He sent Anna an email confirming the new arrangement, which he refered to as ‘an order for 1000 Olympic T-shirts to be delivered before 3 June 2016 (definitely)’. In the email Arun also said he would not accept delivery or pay for the T-shirts if they arrived after 3 June 2016.

After a lot work and stress .G4G got the Olympic authorization on 28 May at which point they started making the T-shirts. They had a large number of orders, many of which have very specific delivery deadlines, including Arun’s. G4G decided the best thing to do in the circumstances was to make as many T-shirts as they possibly could, and than divide them between their customers. That way each customer would receive some shirts, even if they are not as many as the customer had ordered. Arun’s order arrived on 2June 2016, but it only contained 750 T-Shirts and an invoice for $5 per T-shirt, instead of the $3 price he had originally negotiated.

a. Is Arun requied as a matter of contract law, to accept the T-shirts and pay for them? In your answer you should consider the following.
b. Whether G4G has performed their obligations under the agreement. (3 marks)and
Whether or not Arun has to perform his part of the agreement, by accepting delivery and paying for the T-shirts. What would you advise him to do in this situation? (4 marks)








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