Ashtown Foundry Co. entered into an agreement with Hygrade Iron Mine Ltd. to supply it with 50 tonnes of iron ore each week for a period of one year. The first week, Hygrade delivered 60 tonnes, the next week only 45 tonnes, and in the three weeks that followed 40 tonnes, 42 tonnes, and 40 tonnes. Ashtown Foundry Co. has heard rumours that the mine is in financial difficulty and may close down operations. Management of Ash town contacted their lawyer for advice.
What advice might their lawyer provide?
(Note: The Book: Fundamentals of Canadian Business Law, Second Edition; Unit Performance and Breach of Contract.; Please turn to page 131 of the textbook to the Ask a Lawyer feature box. Reflecting specifically on the types of breach of contract introduced to you in the second half of this unit, please isolate the issue facing Ashtown Foundry Co. and critically analyze the scenario.)