This is a scenario that I need some help with. Can anyone help me please?
‘Spinning Farm Limited have agreed to supply Maz’s Supermarkets with organic strawberries for sale in their supermarket at £1.00 a kilogram. During negotiations, Spinning Farms Director has told Maz’s Purchasing Manager that their strawberries are grown without using chemicals or fertilisers.
Maz’s Purchasing Manager also asked for confirmation that no chemicals or non-organic methods have been used after harvesting and the Director said, "Correct. No chemicals or non-organic methods are used."
Two weeks after these statements are made, a written agreement is entered into stating the agreed price, delivery dates between May and September and quantities. The contract also contains the clause: "Spinning Farm Limited does its best to ensure that all its products are supplied according to the Soil Association’s organic standards but excludes all liability for any claims arising from any product breaching those standards".
Spinning Farm is also starting a “Pick Your Own Strawberries” scheme next summer whereby customers can come into the fields and collect as many fruit as they wish for a price per kilogram. The Farm is setting up a website to advertise this and also they will have notices in the farm itself with instructions about picking the fruit.
Spinning Farm’s Director asks you about having a clause which will exclude liability for any claims made against them by “pick-your-own” customers arising from the fruit not being organically grown, and any loss, damage or illness caused by any chemicals used on the strawberries.
You are asked to:
1) Advise Spinning Farm whether the Soil Association’s Standards are part of the contract and whether the Farm is adequately protected by the exclusion clause from claims by Maz’s Supermarket if their strawberries turn out not to be totally organic (50 marks).
2) Also advise Spinning Farm as to how it must incorporate and draft the “pick-your-own” exclusion clause to make it valid, and whether it will, in fact, protect them from all claims by “pick-your-own” customers. (50 marks)
Be specific in the way you discuss how the law applies to the facts of this particular scenario, and consider the potential enforceability of the clauses under the Unfair Contract Terms Act 1977 for business to business contracts for part (1) and the Consumer Rights Act 2015 for business/consumer contracts for part (2).
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Contract Law Scenario Question watch
- Thread Starter
- 28-02-2016 16:11