COMMERCIAL LAW

COMMERCIAL LAW



Commercial Law

Introduction

United Kingdom commercial law is the law which regulates the sale and purchase of goods and services, when doing business in the United Kingdom. Commercial contract law covers a wide range of topics. Commercial contracts can be between businesses or businesses and their customers. Commercial contract law provides the framework for contracts to be drawn up and enforced to ensure they are legally binding agreements, and breaking a contract can be a serious offence.

Commercial contracts could be, for example, an agreement between two or more businesses to work together on a new project. Commercial contract law gives them the tools they need to formalise their agreement in a contract. In the business-to-consumer relationship, commercial contract law is used to create terms and conditions that the business and consumer will be legally bound by (Charlotte, and Paul, 2009).

As businesses now trade more frequently over international boundaries thanks to the internet, commercial contract law can also help businesses and consumers alike to protect their commercial interests, and also ensure they are protected by consumer law no matter which country they are based in. International commercial contract law can be highly complex, so it is always advisable to use qualified solicitors to draw up your commercial contracts.

If you are a consumer that has bought faulty goods, or has another complaint to make about a retailer, you can use commercial contract law (as it relates to consumer rights) to get a refund, or use the courts for other forms of redress. As commercial contract law can be complex - especially over international boundaries - never attempt to bring a lawsuit yourself. Always contact a qualified business solicitor to advise, help and support you throughout your case (Andrew 2008).

The Case

Exclusive winery UK Ltd (“Exclusive”) enters into a contract with Cuvée Ltd (“Cuvee”), a French champagne maker and supplier to buy champagne. The contract is for the supply of Cuvée's champagne including its rare vintage of 1995. Exclusive is an English distributor supplying high-end restaurants, bars and retail outlets. The contract stipulates that the agreement will last for an initial period of one year with a further option of 18 months at the discretion of Exclusive. Delivery of the champagne is to be by instalments every two months. The value of the contract is £1 million half of which Exclusive paid up-front. The balance is due upon delivery of the sixth instalment.

The first instalment was delivered and accepted on time. When the second instalment was delivered, Exclusive noticed that the wrong vintage year was delivered. Upon notification, Cuvée immediately rectified the problem and supplied the correct vintage. The fourth and fifth instalments were not only late but also the wrong vintage year. Three weeks before the sixth instalment, Cuvée informed Exclusive that it would not be able to make any further deliveries under the contract.

Exclusive is very angry about this development as it has lucrative contracts with a number of high-end restaurants and bars especially for the Vintage ...