Prepare a full written answer to the following problem for presentation to the rest of the tutorial group and peer assessment. Dragon Retail Ltd imports and sells toys from China. Dragon contracted to buy 50, 000 at £5 each from China Link Ltd the UK agents. Dragon had £100,000 worth of orders for the toy before Christmas. Due to production problems in China, China Link said the price had to be increased to £7.50 each to ensure delivery before Christmas. Dragon agreed as they did not want to be unable to fill their orders. In addition, Dragon agreed to Trade Union demands just before Christmas to increase staff wages and holidays to avoid a threatened strike that would have prevented delivery of the Christmas orders and put them in breach of contract with their customers. Advise Dragon as to whether they can avoid the contracts with their employees and China Link and recover the extra money paid.