Answer Happy

Ruawai Maaka, who runs a collectables store in Melbourne, is in dispute with Action Supplies (its action figure wholesaler) over its last delivery of action figures. Ruawal had ordered vampire action figures. The delivery from Action Supplies, arriving one week later, contained the overall correct number of action figures ordered. However, the action figures themselves were not of the correct type. The delivery was comprised entirely of werewolf action figures, instead of the vampire action figures that Ruawai had ordered. For the purposes of this question, please assume that the 'liability clause' (the exclusion clause) referred to in the previous question does not apply. Ruawai's store has a strong action figure customer base. Ruawai will still be able to sell the werewolf action figures. However, the retail price for werewolf action figures is less than vampire action figures. Ruawai will only be able to sell the werewolf action figures for $19.95 each, whilst vampire action figures sell for $29.95 each Ruawai needs to determine whether he has the right to terminate the contract, and whether or not that is the case, he also needs to determine whether he is entitled to damages (A) Does Ruawai have the right to terminate the contract for breach in performance, according to the law of contract? (2 marks.) (B) What damages can Ruawai claim from Action Supplies as a result of its breach of contract, according to the law of contract? (4 marks.) Do not discuss the Australian Consumer Law. Please refer to any relevant legal cases and/or legislation to support your arguments, and ensure that you fully explain your answer. Type your answers in the box below.