I am a legal advisor of a Scottish soft-widget manufacturer, Widgisoft Ltd. I have been asked to advice Widgisoft Ltd on the financial liabilities they may face. Throughout this case, I will explain several legislations and other cases that are similar or related to this case. I will state whether or not Widgisoft Ltd will face financial liabilities and explain the reasons for it.
Widgisoft Ltd had sent widgets to a company called Brown and Co on the terms agreed that the customer pays the money within 90 days. However, the customers of Brown and Co want to claim their money back due to the fact that the widgets they received were of poor quality, so now Brown and Co are wanting to recover their financial loss.
Brown and Co asked Widgisoft Ltd about the cost of 30,000 widgets and they replied back by saying it would cost £15,000. Widgisoft Ltd have given their quotation of the price which is called an offer. By giving the quotation of the prices, it can potentially be a contract. If Brown and Co agree to the conditions that are written in the standard form of the clause, this would mean that they have accepted the offer. This can definitely be a contract if both parties accept the offer that has been stated by the company who are selling the products…show more content… This act only covers the exclusion clauses and applies to a business who are excluding liabilities, which is the situation in this case. To prove that the terms and conditions are fair and reasonable in the clauses itself, it depends on the company that are willing to consider it. The contract itself will not be voided, but it will only affect the clauses of the contract. Under this act, some exclusion clauses will be considered as being void and some will be considered to go through the ‘fair and reasonable’ test to further decide if it’s killed off or valid. This is stated in the Unfair Contract Terms Act 1977 s.17
