Axel is a German manufacturer who uses hydrochloric acid in his manufacturing process. In January 2010 he entered into a contract with Boris, a Russian wholesaler of chemicals, for the supply of 100 tonnes of hydrochloric acid to be delivered to his factory in Germany by 1 April. In March Boris found out that his supplier, the company, which actually manufactured the acid, was engaged in a long-standing industrial dispute and would not be able to supply the acid.When Boris failed to deliver the acid by the agreed date Axel was forced to buy an alternative supply of acid to keep his production process operating. The cost of the replacement acid was considerably higher than the price agreed in the contract with Boris. As a result Axel intends suing Boris for breach of contract, claiming compensation for damages, consisting of the difference between the price of the acid established in the contract and the price at which he was obliged to purchase the acid from the third party. Boris denies any liability, claiming that the failure to supply the acid was due to circumstances beyond his control.Required:Within the context of Article 79 of the UN Convention on Contracts for the International Sale of Goods, advise the parties on the extent to which an impediment beyond their control may allow a person to avoid liability for breach of contract, and whether or not Boris will be liable for the damages suffered by Axel. (10 marks)
