Urgent Commercial Law Question

Paul Roger winery UK Ltd (“Roger”) enters into a contract with Gosset (“Gosset”), a French champagne maker and supplier to buy champagne. The contract is for the supply of Gosset’s champagne including its rare vintage of 1990. Roger is an English distributor supplying high-end restaurants, bars and retail outlets. The contract stipulates that the agreement will last for an initial period of one year with a further option of 18 months at the discretion of Roger. Delivery of the champagne is to be by installments every two months. The value of the contract is £1 million half of which Roger paid up-front. The balance is due upon delivery of the sixth installment.
The first installment was delivered and accepted on time. When the second installment was delivered, Roger noticed that the wrong vintage year was delivered. Upon notification, Gosset immediately rectified the problem and supplied the correct vintage. The fourth installment was on time but the wrong vintage year. The fifth installment was not only late but also the wrong vintage year. The fourth and fifth installments were sent back to Gosset by Roger. Three weeks before the sixth installment, Gosset informed Roger that it would not be able to make any further deliveries under the contract.
Roger is very angry about this development as it has lucrative contracts with a number of high-end restaurants and bars especially for the Vintage champagne. Roger estimates that it has lost about £4 million because of Gosset's breach and £ 2 million of that is due to the loss of the lucrative contracts. Roger wants to recover the loss. You have been approached by Roger about its position.
Advise Roger.

Hi all,

The plan is this, any ideas are much welcomed :smile:

PLAN
Remoteness of damage
Rescind
repudiate
Warranty
Condition
Damages and Remedies in Contract
Consideration
Advise your client on damages- put you in a position you were in had the other side agreed. Remoteness of damage- courts wont award you damages. ALL law firms have liability insurance- premium goes up- in cars too
S29- rules of delivery- agreed, implied. A definition of a Condition: repudiate +/ claim damages- time/ delivery is of the essence.
Remedies- as a buyer + seller
Specific performance – is an order
30 is delivery by instalments. 11 is when the condition has to be treated as a warranty.
Time is of the essence.
Think back to goldring east bourne cases- title/ ownership of car.
35a- right of partial rejection- contrast with delivery by instalments.

S50 (3)- non acceptance-
S41- sellers lien- you have become an unpaid seller- s38- your in possession of the goods.
S44- if the goods transit, not yet delivered , seller can take poss of goods, if buyer is not insolvent, can rely on s44.
S45- duration of transit. Resale s48- (3+4)- key. A seller can resell goods in his possession. 4) rescind- diff to repudiate, can recover his price, if you don’t pay me within x amount of time, i will sell the goods. Reasonable depends on the facts of the case. Loss occasioned... sell goods at a loss... difference- get it back.
D48 (4)- doesn’t take away your right to sue for damages.

Any advice please?

Reply 1

jacketpotato

20

Be careful to focus on whats relevant to the question. Things like "ALL law firms have liability insurance" are not relevant. Specific performance only deserves very brief consideration since most of the loss has already been suffered and its very unlikely it would be granted. Seller's remedies aren't relevant because it is the seller that is in breach, it is the buyer who has suffered loss.

Other than the inclusion of irrelevant material in your plan you seem to be on the right track. Just be sure to take it really systematically.

Reply 2

sweetgyal24

OP

16

Original post by jacketpotato

Be careful to focus on whats relevant to the question. Things like "ALL law firms have liability insurance" are not relevant. Specific performance only deserves very brief consideration since most of the loss has already been suffered and its very unlikely it would be granted. Seller's remedies aren't relevant because it is the seller that is in breach, it is the buyer who has suffered loss.

Other than the inclusion of irrelevant material in your plan you seem to be on the right track. Just be sure to take it really systematically.

Thank you so much :smile:

Anything else I could add in? (As in other the sections of the Sale of Goods Act)??
Strengths and weaknesses can be added?

(edited 12 years ago)

Reply 3

sweetgyal24

OP

16

Does anyone else have any advice? Thanks

Reply 4

jacketpotato

20

Original post by sweetgyal24

Thank you so much :smile:

Anything else I could add in? (As in other the sections of the Sale of Goods Act)??
Strengths and weaknesses can be added?

Perhaps s13 and s30

Reply 5

sweetgyal24

OP

16

Original post by jacketpotato

Perhaps s13 and s30

Thanks! Was just going to go through SOG at some point.. as for the structure, does it have to be starting from the lower sections? or just in terms of the problem question? Every word has been put in there for a reason I assume. :smile:

Reply 6

jacketpotato

20

Original post by sweetgyal24

Thanks! Was just going to go through SOG at some point.. as for the structure, does it have to be starting from the lower sections? or just in terms of the problem question? Every word has been put in there for a reason I assume. :smile:

No structure it as per the problem question. What are the contract terms? What are the breaches of contract? What are the remedies?