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"Your company, Brasilia Cachaça, sells its cachaça (alcoholic beverage) worldwide. Brasilia Cachaça has a contract for 100,000 bottles of cachaça to be shipped to the United States. The price stated in the offer and acceptance is $1 per bottle. During the production of the cachaça, the price of the main ingredient, sugarcane, increases by 25% due to a shortage of sugarcane production. In addition, these bottles are due for shipment on June 15 and arrival in San Diego, California no later than July 1. Yet, on June 15, a stevedores' strike begins, which lasts for 60 days.

Issue: Are either, or both, of these factors - the material price increase and the stevedores' strike - an excuse for Brasilia Cachaça’s non-performance? (Discuss under CISG law only).

You must provide an answer using the format RULE/ANALYSIS on the issue of breach of contract, and excuse to non-performance only.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92495202

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