Legal Issues in Business Essay Example | Topics and Well Written Essays - 1000 words

Legal Issues in Business - Essay lessonAs the plaintiff had to purchase concrete from a different supplier at higher prices, the terms differentials were charged on the defendant and were deducted from the c wholeables. The plaintiff allowed the defendant to resume supply on a assure that the supply would come only from a single plant. On resuming the supply, the defendant failed to supply the ordered measurement of concrete on numerous occasions (at least 42). Shortage of raw materials and plant breakdowns were the two firsthand reasons cited and on some occasions no reasons were cited by the defendant for non- or short supply of concrete. The plaintiff was again forces to purchase concrete from a different supplier and again at higher prices. The plaintiff charged the defendant for cost differentials and deducted it from the outstanding dues. The defendant on the other hand, maintained events leading to non- or short supply of concrete would fall under Force Majeure and hence the defendant was not credible for the cost differentials. The defendant had to avoid supply of concrete due to plaintiffs non payment and discount of cost differentials from outstanding dues. ... 2. Analysis Issues Following are the issues that were raised in the effort woo and several(prenominal) findings that the court has to decide on Issue (a) Was the withdraw sole supplier or exclusive centralise? The finding of the trial was that the contract was not a sole supplier or exclusive contract. Issue (b) Was the Plaintiffs claim for cost differentials, incurred due to purchase from an alternate supplier to due defendants inability to meet quality requirement, during the suspension period justified and allowed? The finding of the trial court was that the Plaintiff was not allowed to claim cost differentials during the suspension period. Issue (c) Can the defendant habituate force majeure clause to exempt itself from the liability for non- or short supply? The finding of th e trial court was that shortage of raw materials would fall under force majeure but not plant breakdown. Hence, the defendant was conjectural only non- or short supply due to plant breakdown. Issue (d) Is the defendant entitle to suspend the supply? The finding of the trial court was that the defendant was entitled to suspend the supply. Issue (e) Was the Plaintiff entitled to terminate the contract? The finding of the trial court was that the Plaintiff was not entitled to terminate. The Plaintiff has appealed against all findings of the trial court. Judgement Following is the judgement of the court on the respective issues. The authorities that have been followed and elevated have been discussed accordingly Issue (a) The judgement arrived was that the contract was not a sole supplier or an exclusive contract. The judgement was reached based on the reasons that there was no mention in the contract beingness an exclusive one neither was