In: Accounting
Battcom was a laptop battery manufacturer. Fahue, a laptop manufacturer, entered into a contract with Battcom for the purchase of 500,000 units of battery. The battery were to be delivered before 1 April. Late delivery would attract penalty. On 18 March, Malaysian government announced Movement Control Order (MCO) for 4 weeks until 10 April due to Covid-19 outbreak. Battcom claimed that the contract was frustrated. Discuss whether the contract is frustrated or it amounts to a breach of contract ( 8 marks )