Charles contracts to supply peter with 1000 widgets per month for 24 months for a fixed sum of 20000, payable in advance. After six months there was an outbreak of war in the main widget producing country riritiana. Peter, hearing that as a result of this Charles has started to cancel similar contracts,suggests t o Charles that he will be prepared to take 7000 widgets per month in satisfaction of their contract. Charles agree and delivers 7000 widgets per month for the next 5months. The war in riritiana then ends and the market price of widgets collapses. Peter now demands:

A. 15000 short fall in delivery in relation to the past five months, and

B. 10000 widgets per month for the rest of the contract

Asked by Patricia Adu