... 30 June 2002, PC contracts TTA to indicate that the cost of parts and fittings for the trams to be supplied to PC by overhead Cable Cars (OCC) has been increased under an escalator clause in the PC-OCC contract and that OCC is demanding an immediate Cash injection of 2 Million to ease cash flow problems. This means says PC that it cannot complete the trams for TTA at the agreed price of 20 million and needs a further 2 million. TTA agrees to pay PC this extra sum of 2 million provided that the money is paid over immediately to OCC. In consequence of having to pay the extra money, TTA approaches the Melchester City Council (MCC) for financial aid. MCC agrees to pay half of the additional sum, namely 1 million to TTA that it complies with its statutory obligations including it's duty to pay passenger rebates Discuss: 1) PC, having ...

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