Which of the following is correct?

AB Ltd contracted to deliver two desks and three filing cabinets to CD Ltd. On the day when delivery was due to take place AB Ltd did not have a vehicle with sufficient capacity to hold all the goods. As a result AB Ltd delivered the two desks only

Which of the following is correct?
A . The contract between AB Ltd and CD Ltd is frustrated.
B . CD Ltd is legally entitled to refuse delivery of the desks
C . The failure to deliver the filing cabinets is a breach of a warranty which entitles CD Ltd to claim damages
D . The delivery of the desks amounts to substantial performance of the contract and CD Ltd is obliged to pay the contract price less an amount for the defects in performance

View Answer

Answer: B