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ILEX Part II Law of Contract Assignment 4
Task
Claude & Co were importers of wine, which they bottled at their plant near Dover. They entered a particularly lucrative contract with Vine Life, a large chain of retail wine merchants, for the supply of red table wine. In order to meet their obligations under this contract Claude & Co decided that they needed to purchase new equipment which could bottle wine at the rate of 1,000 bottles per hour.
They approached Corkram Ltd suppliers of bottling and packaging equipment, with a view to such a purchase. Godfrey, Corkram's sales manager, recommended the Corkram ZJ6, which he said could process a maximum of 1,200 bottles per hour. He then proceeded to demonstrate the machine to Claude & Co's representative. Claude & Co then purchased a ZJ6 from Corkram.
In fact the ZJ6 could process only 600 bottles per hour. Godfrey had confused the capacity of the ZJ6 with that of the ZJ8, a larger and more expensive machine. When Claude & Co failed to deliver wine at the agreed rate to Vine Life, Vine Life repudiated the contract.
Discuss Corkram's possible liability to Claude & Co.
(ILEx, Q8 June 1996)
Guidance
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