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GoGo Ltd has contracted Reny Manufacturing to produce a bespoke piece of equipment for them.

GoGo Ltd has contracted Reny Manufacturing to produce a bespoke piece of equipment for them. It is an asset and costs a significant amount of money. A contract is drawn up which states that GoGo Ltd has the right to terminate the contract at any time for any reason. Halfway through production of the asset, GoGo Ltd calls Reny Manufacturing to cancel the order. Reny Manufacturing has incurred many costs already. Can GoGo Ltd cancel the order?

A.

yes- the order has not yet been delivered meaning that GoGo Ltd can cancel- there has been no transfer of ownership

B.

no- Reny Manufacturing will sue for damages

C.

yes- there is a termination clause in the contract

D.

no- the termination clause is unfair

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