Sign In
Not register? Register Now!
Essay Available:
Pages:
4 pages/β‰ˆ1100 words
Sources:
Check Instructions
Style:
APA
Subject:
Law
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 19.44
Topic:

LAW OF CONTRACT Law Essay Research Coursework Paper

Essay Instructions:

PLEASE REFER TO DECIDED CASES
PROBLEM QUESTION
QUESTION B1
Shims are components used to achieve precise tolerances during the assembly of
aircraft and similar structures. Precision Tooling plc (“Precision”) is a manufacturer of
shims for the aerospace industry.
On 1 March, at an air show, Jim, Precision’s managing director, had a discussion with
Stacey, production director at Missile Systems plc (“MS”) about the supply of shims for
the new Smash 3 missile. Stacey explained that MS had a number of contracts with
the Ministry of Defence for sales of Smash 3, and had also obtained a number of export
licences for it. Jim agreed to put together a proposal for the supply of shims for MS.
Later that week, he submitted Precision’s proposal, extracts of which are contained at
Documents A and B.
Stacey read the front of the proposal, but, pre-occupied with other matters, put it to one
side. Jim rang later that day to check her progress. Stacey explained that she had not
yet looked at the proposal. Jim said that Precision “would be liable for almost anything
that might be wrong with the shims, and we’re a big enough outfit that we don’t need
to carry insurance for defects”. Re-assured, Stacey signed and e-mailed the proposal
back.
Owing to manufacturing problems, Precision could not deliver the first two batches of
shims until the middle of May. As a result of this delay, MS had to employ additional
agency staff at a cost of £50,000, and missed out on a routine deal to supply Smash
3’s to a South American state, which would have produced a £700,000 profit.
Unfortunately, the third batch of shims supplied by Precision were of a type normally
used in aircraft fuselages, and not developed to withstand the intense forces of missile
launch. As a result, many of them cracked in tests, sending missiles haywire. None of
the missiles they have been incorporated into can be used.
Precision has now written to MS demanding payment pursuant to the contract. MS
has refused to pay, and wants compensation of £750,000 in relation to the late delivery
of the first two batches of missiles, and £2,000,000 of lost profit from a Middle Eastern
customer who had bought missiles containing defective shims which have had to be
returned.
Advise MS, explaining its legal position in relation to Precision.

Essay Sample Content Preview:
Contract Law
Introduction
In the modern commercial environment, it is essential to have a proper grasp of potential legal suits that can be imposed to a company whenever there a is a contract breach. One of the most important aspect is ability to understand and have quick resolutions about the various legal issues that may arise due to failure of a company to meet its obligations. In the case presented, we can see that Shims are components that are used to achieve precision tolerances during aircraft assembling and other similar structures. Precision Tooling PLC (Precision) manufactures these shims for the aerospace industry. On 1st March, at an air show, Jim, the managing director of Precision discussed with Stacey, the production director at Missile Systems PLC (MS) about the supply of shims for the new smash 3 missile. Stacey explained that MS had established several contracts with the Ministry of Defense for the sales of Smash 3 missiles. Moreover, there were several export licenses for the products.[ADDIN CSL_CITATION {"citationItems":[{"id":"ITEM-1","itemData":{"ISBN":"1405846712","author":[{"dropping-particle":"","family":"Elliott","given":"Catherine","non-dropping-particle":"","parse-names":false,"suffix":""},{"dropping-particle":"","family":"Quinn","given":"Frances","non-dropping-particle":"","parse-names":false,"suffix":""}],"id":"ITEM-1","issued":{"date-parts":[["2007"]]},"publisher":"Pearson Education","title":"Contract law","type":"book"},"uris":["/documents/?uuid=b0315613-7036-4ba7-b4d3-2ed37d3242a4"]}],"mendeley":{"formattedCitation":"Catherine Elliott and Frances Quinn, Contract Law (Pearson Education 2007).","plainTextFormattedCitation":"Catherine Elliott and Frances Quinn, Contract Law (Pearson Education 2007).","previouslyFormattedCitation":"Catherine Elliott and Frances Quinn, Contract Law (Pearson Education 2007)."},"properties":{"noteIndex":1},"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"}Catherine Elliott and Frances Quinn, Contract Law (Pearson Education 2007).]
Facts
Through the conversation, Precision managing director agreed to write a proposal for the supply of shims for MS. The proposal from Precision stated the actual number of Shims to be supplied and the price and the payment period, which was 30 days after delivery of the Shims. There were also specific dates on the delivery of batch 1 and 2. The documents also included terms of business, which were stated that: “No liability is assumed for any indirect loss, damage or expense arising from any delay in the delivery of the Products; and the maximum liability assumed for loss of profit or business resulting from any failure of the products to comply with any express or implied terms of this contract shall be £100,000.”
Stacey perused through the front pages of the contract, and because he was preoccupied with other matters, put it into another side. Later in the day, the CEO of the supplier company called her to check the progress. Stacey stated that she did not have an opportunity to go through the proposal. Jim stated that Precision would be liable for almost anything that might be wrong with the shims, and and that they were a big enough outfit that we don’...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

πŸ‘€ Other Visitors are Viewing These APA Essay Samples: