ABC Ltd is a manufacturerof wood veneered panels as used in the production of caravans. On Monday, ABCLtd agreed to supply Bendit Ltd, a distributor of such panels, with 250 oakveneered panels (each 2440 x 1220mm in size) from their remaining stock of 300,on their normal credit terms. It was agreed that ABC Ltd would deliver thesepanels by rail to Nottingham railway stationfor collection by Bendit Ltd on Friday. On Thursday afternoon,Bendit Ltd received an e-mail from ABC Ltd informing it that exactly 250 oakveneered panels of the required dimensions had been loaded on board a train belongingto NottEast Railways and were now on their way to Nottingham. Bendit Ltd wasalso informed that Nott East Railways had been instructed to release the goodsonly upon the authority of ABC Ltd. Oak veneered panelsare currently in short supply and Bendit Ltd was aware that Carlton Ltd, amanufacturer and supplier of motorhomes and caravans, was keen to purchasewhatever amount of oak veneered panels that it could. Therefore, shortly after receivingthe e-mail from ABC Ltd, Bendit Ltd agreed to sell to Carlton Ltd “the 250 oakveneered panels (each 2440 x 1220mm in size) now in the process of being delivered by ABC Ltd to Bendit Ltd at Nottingham railway station.” Early on Fridaymorning, ABC Ltd was advised by NottEast Railways that the oak veneered panelshad arrived at Nottingham railway station. ABCLtd duly authorised NottEast Railways to deliver the panels to Bendit Ltd whichwent to the station to collect them. However, when Bendit Ltd arrived it wasdiscovered that thieves had broken into one of the containers and stolen 100 ofthe panels. This theft occurred shortly before ABC Ltd authorised NottEastRailways to deliver the goods to Bendit Ltd. The price of oak veneered panelsis continuing to rise and Carlton Ltd is insisting upon taking delivery of theremaining 150 panels at the contract price. Bendit Ltd has itself agreed toaccept delivery of the remaining 150 panels from ABC Ltd but now intends tosell these to another customer at a much higher price.
Advise Carlton
Please help!!