Problem
Amir runs a restaurant. He contracts with Ali, who runs a dairy farm business, for daily deliveries of milk, cheese and other products. The quantities to be delivered each day are specified in the contract, which also provides that "cancellation of contract is subject to 3 months' notice on either side". 6 months into the contract, a world food crisis leads to new governmental restrictions on the quantities that dairy farmers can supply. Ali initially promises to continue to supply Amir in full, but then decides that it would be fairer to reduce deliveries to all of her clients equally, which she does. The deliveries to Amir are therefore less than the contract quantities, and some of the products supplied are of low quality. A party of tourists in Amir's restaurant all suffer from food poisoning, an incident which leads to expensive court case and considerable damage to Amir's reputation and which is due to the products supplied to him by Ali. Amir takes this personally, bombarding Ali with e-mails protesting at "how you treat your most loyal customer". Not receiving an answer to his liking, he announces that he is cancelling his contract with Ali immediately, and has no intention of paying her even for last months' deliveries let alone any future ones. Advise Ali.
A. Discuss if the contract was valid from the beginning.
B. Discuss the importance of change of law and its effects on the performance of the contract.
C. Rights and responsibilities of both parties arising out of breach of contract.