Floidex Case Summary

Good Essays
The followings are my explanations to the requested issues.

• The grounds for Ellis' claim against Floidex in relation to the contaminated Agri-Therm:
Ellis's claim is on the ground that Floidex has breached the condition of their contract. That Floidex sent a defective consignment to Ellis of which as a result Ellis lost sales to its retailers. Therefore, Ellis believes Floidex has breached the express terms of clause 7.1 and 7.1.4 of its Standard Terms and Conditions (sale of Goods) (the Terms) and the implied term of section 14(2B) of Sale of Goods Act 1979.
Under clause 7.1 and 7.1.4 of Floidex express Terms, Floidex warranties the quality and fitness of its consignment; this may impose liability on Floidex. Moreover, the implied term
…show more content…
Despite Ron Ellis was unhappy about the exclusions in Clauses 7 & 8 of the Terms, he was aware of its implications when he agreed to the Terms as Ellis uses similar exclusions in its own standard terms and conditions of sale. We will assume the Terms were incorporated into contract by signatures of both parties.
However, Floidex did breach the terms of their agreement. Floidex did supplied Ellis with goods of no satisfactory quality, and the goods were not fit for purpose.
Floidex did not deny the fact that the contamination of the consignment of Agri-Therm was its fault; it had traced the contamination to one of its blending
…show more content…
For breach of condition, Ellis is entitled to reject the goods as it intended although is not obliged to do so. Ellis is also entitled to claim damages if it has suffered further loss as it claimed because "damages might reasonably be within the contemplation of the parties at the time the contract was made" Hadley v Baxendale (1854).

• Floidex's attempt to exclude liability for the claim under its standard conditions of sale:
Floidex Standard Terms and Conditions (sale of Goods) which both parties agreed has a 'Limitation of Liability'. In clause 8.2.1 of the Terms, it exonerates Floidex of any loss of profit as a result of breach of contract. Clause 8.2.2 of the Terms also limits Floidex total liability to the cost price of the goods only. Floidex may rely on these exclusion clauses as they have been incorporated into the Terms when both parties expressly agreed to its implementation.

Floidex exclusion clause will cover the breach of the statutory duty that would have implied and the express terms of the agreement. The exclusion will cover remedy for loss of profit as both parties contemplated at the beginning of their

Related Documents

  • Decent Essays

    A breach of business contract is a term used when one or more conditions specified in business contract are not completed by first party or the second party. Consequently, it takes the issue of breach of contract to the court where the responsible party is sued to provide certain amount of money as substitute to damages that occurred because of their action. Moreover, Simon can claim his damages as well as discharge himself for any other conditions that he was further responsible to follow and complete. Even if Payn does not leave the band, but deliberately performs in inadequate or disappointing way can lead to legal actions against him. According to English law, when breach of contract occurs, the first party receives opportunity to address the issue of breach of contract in following ways: Monetary compensation: Payn will be responsible if Simon’s TV show receive low viewership or get into a loss.…

    • 904 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Indian Oil Case Study

    • 1064 Words
    • 4 Pages

    In fact, when the goods have been delivered only for a storage purpose, there is no intention that the property passes to the keeper so “the mixed bulk will be owned in common by the contributors […] in proportion to the amount of [their] contribution . This conclusion has been confirmed in Indian Oil Company Ltd v Greenstone Shipping to the situation where oils of an original owner were wrongfully and irreversibly mixed with other oils of the same nature since they were still identifiable as a part of the mixed bulk owned in common . However, when goods of different kinds and from various owners are wrongly blended in a way that they are transformed in a new product, the original owner will still be able to trace its property even it its identify has changed. For example, in Glencore, blended bulk made of different grade of oils was also owned in common by the contributor in proportion of their contribution. As innocent parties, contributors were also entitled to recover damages from the wrongdoer.…

    • 1064 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Distinctiveness Of Trademark

    • 5384 Words
    • 22 Pages

    they are saying something about themselves which is calculated to mislead. The law on this matter is designed to protect traders against that form of unfair competition which consists in acquiring for oneself, by means of false or misleading devices, the benefit of the reputation already achieved by rival traders. [14]Passing off is not defined in the Trade Marks Act, 1999 though is referred to in ss. 27(2), 134(1) (c) and 135 of the Act. As seen above, a passing off action prevents Trader A from passing off his goods as that of Trader B in the market.…

    • 5384 Words
    • 22 Pages
    Decent Essays
  • Decent Essays

    Liquidated Damages Essay

    • 891 Words
    • 4 Pages

    • Section 74 read with Section 73 and, therefore, in each case of default, and the aggrieved person to prove that he suffered before he can apply for a decree does not require a breach of contract, the actual loss or damage. Under the circumstances the Court has the ability, even without proof of actual loss suffered the consequences of breach of a violation of a reasonable award of compensation. • In some contracts, it would be impossible to court, in order to assess the breach, if we consider the compensation will not be punished or unreasonable manner, the court may grant the same, if it is a genuine pre-estimate of the parties arising compensation As a reasonable compensation…

    • 891 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Generally, A plaintiff can sue for either liquidated or unliquidated damages or both of them because of breach of contract, whereas liquidated refers to an amount specified in the contract, while unliquidated is not. The general rule for plaintiff get remedies for the loss for breach of contract are not covered any disappointment, distress, injured feelings or mere inconvenience arising from the breach (e.g. Jarvis v Swan Tours (1972) 3 WLR 954). (P 280) There are three types of misrepresentation: fraudulent misrepresentation, innocent misrepresentation and negligent misrepresentation. Firstly,…

    • 1378 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    The issue at hand here, is that the key tenants are leaving, and this was not made known to William Byrd and his partners before the contract was signed. Ultimately, this resulted in the judge deeming Putnam Construction & Realty Co.’s conduct fraudulent. The reason being, once these major tenants left, the USBC no longer possesses the profit potential Byrd and the partners bargained for. More importantly, the requirements of restitution state, “that it commonly remedies parties that suffer from fraud, misrepresentation, mistake and duress”(Beatty & Samuelson,2015, p. 414).This tells us that based upon the definition alone that the buyers should at least be made whole. In other words, they should be entitled to at least…

    • 702 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    The manufacturer should be liable for the negligence if their product to cause harm to the users. In such a type of case, it is not necessary for the customers to give notice within a reasonable time to the sellers. While the purpose of the 1769 section of the Civil Code is to protect the seller, and product liability protects the customers’ rights regarding defective products. Another issue arose from this case was whether to emphasize on the Civil Code (section 1769) or product liability when viewing this case. While both parties had their own reasons to defense themselves, it is hard to make a…

    • 1564 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    O’Neal’s legal action against the Colton School, suing on the grounds that he is discharged from his duties because his performance became impracticable, is objectively implausible. His condition was not sudden. He could have chosen not to agree to another term of his employment contract if he found his vision too burdensome. Although O’Neal’s legal action will be unsuccessful, if the Colton School were to counter sue for a material breach, seeking damages for the expenses incurred from his breach mid academic year or contractual term, O’Neal would find himself liable for those…

    • 757 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    This is especial considering the more lenient stance on the doctrine of a ‘lost chance’ in the commercial realm. This begs the question, how does one quantify a chance or opportunity, in monetary value? Especially in awarding damaged for a loss of a chance less than probable. Their honours decided that the very concept of doing so with regards to claims of medical negligence would be contrary to the principles of common law and negligence and the law of causation specifically. In finding this and the reasons to be discussed, one may understand that…

    • 1021 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    This is a breach of duty because Odwalla did not act in a reasonable manner when given the facts. Another example of breach of duty is when Odwalla’s head of quality assurance told them to add an additional layer of contamination protection by employing a chlorine based wash after having the U.S. Army reject the sale of their juice because of the high risk of contamination, but the management team was too concerned with the taste. Odwalla had a breach of duty by not adding additional contamination protection which did breach the duty of producing a safe product for their…

    • 1416 Words
    • 6 Pages
    Decent Essays