Question
Acer Ltd ('Acer') is a company that specialises in the supply and maintenance of office reprographic machinery. Stringer & Co LLP ('Stringer') is a firm
Acer Ltd ('Acer') is a company that specialises in the supply and maintenance of office reprographic machinery. Stringer & Co LLP ('Stringer') is a firm of estate agents. On 21st April, Acer's representative, Sarah, attended a meeting at the offices of Stringer in Sheffield to consider Stringer's requirements for such machinery. At that meeting, Sarah discussed with Maggie, Stringer's office manager, the Sentinel and the Acer Desk Top Premium. As for the Sentinel, Sarah explained that the Sentinel was Acer's latest product. She said that it was the fastest and most economical machine of its class on the market. It could reproduce drawings of up to two square metres with outstanding clarity and precision. In light of the limited availability of these machines, the Sentinel was not available for sale but could be acquired by customers on a lease-only basis. As for the Acer Desk Top, Sarah explained that the Acer Desk Top was the most reliable printer of small documents on the market. European and American consumer research organisations had consistently recognised it as the most reliable printer on the market. At a second meeting, held on 31st October, Stringer entered into a contract with Acer for the leasing of a Sentinel for a period of five years at a cost of 10,000 per annum. Before signing the contract on behalf of Stringer, Maggie told Sarah that the Sentinel's capacity to copy large drawings would give Stringer a significant advantage over its local competitors with its capacity to produce large posters of properties that Stringer was offering for sale instead of the smaller A4 packages that were normally used by estate agents. On the same day, Stringer entered into a second contract with Acer for the purchase of 10 Acer Desk Top machines at a cost of 1,000 each. Maggie handed Sarah a cheque for that amount, 10,000 drawn on Stringer's account together with second cheque drawn on the same account which represented an advance payment of 5,000 for 6 months hire of the Sentinel. The Sentinel has now been delivered and installed at Stringer's head office in Sheffield. What is more, the 10 Acer Desk Top machines have now been installed in each of Stringer's 10 regional offices. In fact the Sentinel is slow, expensive to run and can copy drawings of only one square metre. In the two months following the purchase of the Acer Desk Top machines 10 of the 5 machines broke down and it has not proved possible to repair them. Stringer now wishes to obtain damages and sever all business connections with Acer. AdviseStringer on any action, based on breach of contract, that it might take against Acer in respect of the performance of (a) the Sentinel and (b) the Acer Desk Top machines. Use cases to support your answer. Tips:At this stage, you are not asked to consider any remedies that Stringer might have for misrepresentation.
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