Question: Barry is a retired lorry
driver who has just set up his own distribution service called 'Deliveries R
Us'. Pencilbox PLC, his first customers, want to use Barry's service to deliver
stationery to some of their retail outlets. They reached an agreement and a
contract was signed whereby Barry would deliver a minimum of 3000 boxes of
stationery for Pencilbox over the next 12 months. The contract was to commence
on the 1st April. No maximum figure was specified in the contracts and a
delivery charge of £1.00 per box was laid down by Barry.
Barry expected to deliver a
higher amount than the minimum specified and so decided to take out a bank loan
in order to upgrade his existing fleet of lorries.
However six months later,
Pencilbox pic wanted to renegotiate the delivery charge threatening immediate
withdrawal unless the charge was reduced to 50p per box. They also told him
that they wanted him to enter a three year contract with 'Gadgets Ltd' a
subsidiary of Pencilbox pic or they would terminate their business arrangement
with his distribution service.
Barry has found that his
distribution service hasn't been as busy as he believed it would be and so
agreed to the new arrangements as he didn't want to lose their custom even
though he was aware he would be making a lose on the contract with Gadgets Ltd.
Barry has asked for your advice. You are a
junior partner of Patel and Brown Solicitors and have been asked by your senior
to write a report on whether he can claim the lost monies for every delivery he
made on the grounds that the modification made to the contract was due to
improper pressure.
