Dongfang Import &ExportCoDongfangCo) and Lidar SteelCompany (SteelCo) entered into a cooperation contract.According to the contractDongfangCo was responsible for the importation of 10,000 metric ton (M/T) of iron ore and exportation of pig iron 6,000 M/T, while SteelCo was responsible for the processing of iron ore into pig iron; SteelCo was also under the obligation to complete the processing within 10 days upon the arrival of iron ore and then carry the pig iron to Tianjin port for export byDongfangCo.On 10 March 2008 the first shipment of 5,000 M/T iron ore arrived at the designated port and was promptly carried to the premises of SteelCo for processing.10 days later the second shipment of 5,000 M/T arrived at theChinese port. HoweverDongfangCo found that several bank accounts of SteelCo were frozen by the order of the court in a dispute with a third party. Therefore, it immediately despatched a written memo to SteelCo, stating that it would detain the second shipment of iron ore until SteelCo delivered the processed pig iron.Upon the receipt of the notice, SteelCo sent back a fax to express its sincere regret for its delay to deliver pig iron. SteelCo emphasised, however, that it suffered from insufficient funds to buy coke for the processing. It promised to make efforts to deal with this problem, but failed to specify any concrete measures to be taken or give the necessary security for the performance of the contractual obligation. SteelCo also urged thatDongfangCo deliver the remaining 5,000 M/T of iron ore.Considering the date for the shipment of pig iron was approaching but SteelCo did not deliver any processed pig iron,DongfangCo declared the dissolution of the cooperation contract and sold the remaining 5,000 M/T of iron ore to a third party. Under such circumstances SteelCo brought an action againstDongfangCo for damages on the ground thatDongfang refused to deliver the second shipment of 5,000 M/T iron ore for processing.Required:Answer the following questions in accordance with the relevant provisions of theContract Law ofChina, and give your reasons for your answer: (b) State whetherDongfangCo was entitled to dissolve the cooperation contract and sell the remaining iron ore to a third party; and (3 marks)