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In relation to contract law, explain how the Unfair Contract Terms Act (Cap 396) applies to exclusion clauses. (10 marks)
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Jane supplies sharks’ fi ns to Chinese restaurants. She entered into a contract to buy 100 kilograms of superior grade sharks’ fi ns from Fiona. The sharks’ fi ns were to be delivered on 1 January. On 1 January, Fiona informed Jane that she was unable to deliver the superior grade sharks’ fi ns due to a shortage of sharks’ fi ns in the market. As a result, Jane’s sales for that month plummeted to 40% of her monthly average sales. In addition, Jane could not meet the extra demand for sharks’ fi ns for the month of January, which was the Chinese New Year season. Her clients, reputable Chinese restaurants, usually pay exceptionally high prices for good quality sharks’ fi ns during the Chinese New Year period.Required:Discuss Jane’s right to damages against Fiona for breach of contract. (10 marks)
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