Project Procurement Management Case Study 1st October 2018 James Signed Booking Proforma P Q34234671

Project Procurement Management Case Study

On 1st October 2018, James had signed a booking proforma for thepucrhase of an oil rig with an onwer, Jericho. The proformaexpressly states that when the purchaser opted to purchase the oilrig, the parties should thereafter sign the sale and purchaseagreement. In 1st December 2018, the government had raised theprice of petrol by 40% and this had caused prices of oil rigs toincrease as well. Since then, the economy went through a veryserious crisis that had caused the whole oil and gas unesconomicand great loss to the owner. On 15th December 2018, Jericho sent aletter to James terminating the sale and purchase agreement forreason of frustration caused by the economic crisis. James refusedto accept the termination arguing that economic down turn was not afrustrating event.

Based on the case above, discuss the followings in an essayformat:

1) Was the booking proforma a contract?

2) Does “economic crisis” considered a frustration to thecontract?