Commercial Law Help!!!!!!!!

crucial1994

I have a problem question, unsure how to go about answering it, anyy advice would be really really helpful. I need to get it into about 800 words, it's about agency in general, but i'm strugglng for ideas!!!

Clean Food Limited is a company specialising in the supply of organic food to retailers of such produce. The company is based in Lincolnshire and has sold its produce in North and West Yorkshire but decided two years ago to expand into South Yorkshire and the Midlands. To assist this expansion they used the services of Ray Charles who was experienced in the organic food market. He was expected to obtain orders for them from health food shops and was engaged under a three-year contract with a 10% commission on all orders that he brought in. His expenses, which were anticipated as being motoring costs, would also be refunded.

With respect to marketing the agreed approach was for Clean Food Limited to identify possible health food outlets that they thought they could do business with. The idea was that they sent them a mailing shot that introduced themselves before saying that their representative Ray Charles would personally contact them to arrange a visit. At these visits he would explain more about Clean Food Limited and their terms of business. Ray Charles managed to make appointments with most of the targeted food outlets and then went onto achieve a high success rate for orders. At this stage, the relationship between Clean Food Limited and Ray Charles seemed to be successful with the expansion programme becoming profitable earlier than anticipated andRay Charles earning good commissions. However, certain matters have now been drawn to Clean Food Limited’s attention.

(A)That Ray Charles entered on their behalf into a one year contract with Ceres Limited. Under the contract Clean Food Limited would supply all the organic produce that Ceres Limited would need (subject to a few exceptions). The price would be the lowest that Clean Food Limited would sell such produce to any other outlet. This contract is doubly annoying as the terms for Clean Food Limited are very poor, and secondly they told Ray Charles never to enter into any medium / long-term supply contracts. Clean Food Limited contracted Ceres Limited and tried to renegotiate this contract but Ceres Limited refused and demanded that it be honoured;

In relation to the above, using agency law, advise Clean Food Limited of their legal position