What happens if a business runs out of stock and is unable to supply their customers

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Demi90
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What happens if a business is unable to supply customers? If a customer gets into an agreement with a supplier and then later finds out that they are out of stock? Will the court consider the 'limited stocks' argument like in Partridgev Crittenden?

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hkiani94
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If a business runs out of stock then you wont be able to make profits. If customers have prepaid for the items amd are awaiting for their product the you need to refund the money.



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(Original post by Demi90)
What happens if a business is unable to supply customers? If a customer gets into an agreement with a supplier and then later finds out that they are out of stock? Will the court consider the 'limited stocks' argument like in Partridgev Crittenden?

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If there is a contract to sell something then not selling it is a prima facie breach of contract. That should be pretty obvious. The point in Partridge v Crittenden was that there was no contract, because the advert was not an offer.

Of course on certain facts the contract may be frustrated. If I contract to sell you a first edition of my Contract Law notes when you give me the money next week, and they are destroyed in a fire tomorrow without fault on either of our parts, the contract is frustrated and so I will not commit a breach by not delivering them.
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