Moot Proposition 2

Amixent Corporation v. Rehin Enterprises

1. Amixent Corporation, a manufacturer of high-tech components, entered into a contract

with Rehin Enterprises, a leading electronics retailer, to supply a large quantity of
specialized microchips for use in their latest line of consumer gadgets.
2. The contract stipulated strict delivery timelines and quality standards, with penalties for
any delays or deficiencies in performance.
3. Shortly after the contract was executed, unforeseen circumstances arose that disrupted
the production and supply chain of Rehin Corporation. World was affected by COVID-19.
4. As per contract the raw materials were to be supplied from China which was hot bed of
COVID-19.
5. A global shortage of key raw materials essential for manufacturing the microchips,
coupled with logistical challenges exacerbated by the COVID-19 pandemic, resulted in
significant delays in fulfilling the contractual obligations.
6. Despite their best efforts to mitigate the impact of these disruptions, Amixent
Corporation found themselves unable to meet the agreed-upon delivery deadlines.
7. A Hyderabad based firm Labsense Limited had enough raw materials when Rehin
approached they asked for higher price.
8. Recognizing the gravity of the situation, they promptly notified Rehin Enterprises of the
delays and proposed alternative solutions, such as sourcing the microchips from
alternative suppliers or revising the delivery schedule.
9. Rehin Enterprises, however, refused to entertain any modifications to the contract
terms and insisted on strict compliance with the original agreement.
10. Faced with mounting pressure from their own customers and stakeholders, Rehin
Enterprises eventually terminated the contract and sought damages from Amixent
Corporation for breach of contract.

Issues for Consideration:

1. Whether the unforeseen disruptions in the production and supply chain of XYZ
Corporation constitute grounds for frustration of the contract, rendering performance
impossible or radically different from what was originally contemplated?

2. Whether Amixent Corporation took reasonable steps to mitigate the impact of the
disruptions and fulfil their contractual obligations in light of the unforeseen circumstances?
3. Whether the doctrine of commercial impracticability applies in this case, considering the
extent of the disruptions and their impact on Amixent Corporation's ability to perform under
the contract?

4. Whether Rehin Enterprises acted reasonably in refusing to entertain modifications to

the contract terms proposed by Amixent Corporation, considering the nature and severity of the
disruptions?

5. Whether Amixent Corporation should be held liable for damages resulting from the
termination of the contract, or whether they are absolved of liability due to the doctrine of
frustration or impossibility?

Parties:

Amixent Corporation (Plaintiff) vs. Rehin Enterprises (Defendant)

Legal Framework:

1. Doctrine of frustration under contract law, as codified in Sections 32 and 56 of the

Indian Contract Act, 1872.

2. Doctrine of commercial impracticability and impossibility of performance.

3. Principles of mitigation of damages in cases of contract breach.

4. Relevant case law precedents addressing contract frustration and impossibility in

commercial contexts.

5. Applicable statutory provisions governing the interpretation and enforcement of

contracts in India.