Commercial Contracts/Contract Law in a Commercial Context-RESIT
Commercial Contracts/Contract Law in a Commercial Context-RESIT. Office Furniture Limited (OFL) supplies basic items of furniture to business customers. It built its business model on being able to supply orders quickly and cheaply mainly to businesses in its local area. OFL generally targeted businesses which needed a quick response on a one‐off basis and was not too concerned with building lasting relationships with such customers. OFL was careful not to be too exposed commercially and financially on a particular contract. In any event, the risks for each individual contract were always low. OFL’s managing director, Bob Lee was not too concerned about terms and conditions. The key was to get a large number of low risk orders. Bob has recently undertaken a review of the business and considers that it would be better to have repeat orders with some customers and to expand out of OFL’s local area. However, he thinks that OFL should still supply low cost furniture. He wants to make sure that OFL’s standard terms and conditions of sale effectively manage OFL’s exposure to risk with the new business model. Bob would like some advice on what amendments to OFL’s current standard terms and conditions of sale may be necessary to take into account the new business model.
Advise Bob on any amendments that you think should be made to OL’s standard terms and conditions to meet the company’s new business needs. You should explain why you think they should be made. You should use a wide range of sources to support your advice, including case law and journal articles.
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