ABSTRACT
Answer both parts: (a) Apex plc have a contract with Nadir Ltd. Apex tell Nadir that unless Nadir enter into a
five year contract with Apex’s subsidiary, Crux Ltd, on terms which are particularly advantageous to Crux, they (Apex) will ‘terminate their agreement’ with Nadir. Despite the fact that the terms suggested mean that Nadir will make a loss on the deal with Crux, they agree because of the value which they place on their contract with Apex. Two years later, Apex go out of business. Nadir now want to escape from the contract with Crux. Advise Nadir. Would it make any difference if Apex’s threat, rather than being to terminate their agreement, was not to renew their contract with Nadir?
