Question

Roxta Biscuits and Seven Eleven Supermarkets enter a contract where the biscuit-making company will supply 1000 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 inflation, are $80. Seven Eleven Supermarkets sues Roxta saying that it has to oblige by the contract signed. Evaluate the case.

Answer

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