Question

Raudhah plan to set up an E-Games centre where she provides service for customer to play PlayStation 5 at the game centre. She entered into a contract with Adam to supply 50 sets of PlayStation 5. Raudhah promise to pay Adam upon approval of her loan application from Tiger Bank. However, after 2 weeks of waiting, Raudhah was informed that her loan application was rejected by Tiger Bank. Adam demand for payment from Raudhah as agreed in the contract, but Raudhah claim the contract was frustrated because her loan application was rejected by TIger Bank. Thus, she refused to pay the amount agreed to Adam as she claim the contract is now void due to frustration.
What is the issues . Explain?​

Answer 1

The problem, in this case, was that Raudhah established a contract with Adam before he knew if the loan application would be approved.

What should be done in this case?

• Raudhah should have made the contract with Adam after the loan application was approved.
• Raudhah cannot keep Adam's products without paying for them.
• The contract between Raudhah and Adam must be in writing and accurately determine the payment date.

Raudhah bought Adam's products not sure if he could afford them. This became an issue as Raudhah's funding was not approved.

Adam should have reviewed the contract and not agreed to deliver the goods without assurance of payment.

More information about contracts is in the link:

brainly.com/question/14315509