In March 2008, David and Caleb enter into two contracts. The first contract is for Caleb to supply David with 150 barrels of orange juice in August 2008. Unknown to David, Caleb intends to import the orange juice from Jamaica. Early in May 2008, however, a customs regulation is passed forbidding the importation of orange juice. In these circumstances, Caleb writes to David advising him that he is unable to fulfil the contract. The second contract is for Caleb to construct a small warehouse for David. After the building is 70 per cent completed, it is destroyed by fire. Sparks from a burning cane field nearby ignites an oxygen tank used in welding which is carelessly left on the premises by Caleb. There have been several cane fires in the area in recent weeks.

Advise David