Question
A company in Newfoundland, Joey's Fish Ltd., enters into a contract with TastyFish Ltd., a British (UK) tum in which Joey's Fish agreed to supply
A company in Newfoundland, Joey's Fish Ltd., enters into a contract with TastyFish Ltd., a British (UK) tum in which Joey's Fish agreed to supply the British with regular shipments of dried fish. The parties used the standard form prepared by Joey's Fish; however, TestyFish objected to the provision that if shipping rates between NewFoundland and the United Kingdom increased by more than 10% in any six-month period, the price of the shipment would be adjusted to reflect the increased cost of shipping. The sales manager of Joey's Fish agreed during negotiations that the offending clause would not be applied against Testyfish, but no change to the standard form was made, and both parties signed the form without alteration. Shipping rates did rise during the life of the contract, but deliveries were made on schedule by Joey's Fish. Testy Fish refused to pay the increased price, and Joey's Fish sued Tasty Fish for the unpaid amount.
11. What law will apply to this contract? Will Joey's Fish succeed in this action? Explain your answer.
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