Roxta Biscuits and Seven Eleven Supermarkets enter a contract where the biscuit-making company will supply 1,000 biscuit packs a day at $50 each to the supermarket chain for the next six months.However,Roxta Biscuits stops their supplies to the supermarkets mid-way,claiming that the prices of each biscuit pack,due to severe inflation,are $80.If Roxta continued to deliver at $50,it would lose $20 per biscuit pack it delivered.Seven Eleven Supermarkets sues Roxta,saying that it has to oblige by the contract signed.Evaluate the case.

The court is likely to apply the doctrine of commercial impracticability in this case.While it is still possible for Roxta to deliver the number of biscuits as per the contract with Seven Eleven,it would come at a big loss for the biscuit company.Since the inflation is an unforeseen circumstance that does not undermine the contract,the court is likely to suggest that the parties enter a new contract mentioning the new prices of biscuits.In case Seven Eleven does not agree to do so,the court will practice the commercial impracticability and excuse the nonperformance of Roxta Biscuits.