Business Law

1-A is Contracting Company Owns Trucks.

2-B is Car Maintenance and Repair Company.

A has contracted with B to repair and maintain its trucks in January 2013. It was agreed between the parties that A would send the trucks to B for maintenance and repair. B prior the maintenance and repairs, will examine the trucks and provide A with a report. The report will indicate the type of maintenance, repairs required for each truck and the cost. A has to communicate his approval before starting the repairs. This was going on for several months until October 2013. B had repaired three trucks and delivered them to A and received from A part of the repair cost. The next day of the delivery, one of the trucks has stopped working, and it was sent back to B for repairs. The new report from B showed that the truck has the same defect, which it had before sending it for repairs the first time. A has refused to pay the remaining amount of the repairs and B has refused to repair the truck and also refused to hand over it to A. accordingly A was obliged to rent a truck instead.

You are B Please answer the following:

1.Identify A and B according to the law and their responsibility.

2.Does B have the right to stop the repairs and hold the truck in their custody? And why?

3.What do you qualify the action taken by A? And what action B should take to recover the payments?

4.What do you qualify the action taken by B in holding the truck and is it permissible for B to claim compensation and remedies?

5.Please in your conclusion, could you explain how could A and B avoided this misunderstanding.