business law

pply Your Knowledge negligent conduct on the part of Niagara's Best. 1. Niagara's Best Organic Foods Wholesale Distributors Ltd but such liability shall in no event include any ("Niagara's Best") distributes organic fruit vegetables, indirect, incidental, or consequential damageh induding ary loss of profit." and other organic products to several stores in Toronto. On September 1. Niagara's Best entered into a oneyear - Weekly shipment price =$5001 " Price is let on contract with Organics for You ("Organics"), an upscale a sliding scale and will be automatically adjusted specialty food shop. The contract was negotiated by to reflect fluctuations exceeding 10 percent in Anton Kokovski, president of Niagara's Best and Ying costs associated with delivering the product.j Li, sales marager of Organics. Under the terms of the Niagara's Best employs Sam Singh on a part-time contract, Niagaras Best is to supply a minimum weekly basis to help with deliveries, On October 3, Sam quantity of products to Organics. Niagaras Best is to accompanies the company president for the weekly deliver two cases each of seven varleties of organic delivery of 20 cases of organic foods to Orgarica. Sam fruit and vegetables, two cases each of two types of and Anton arrive at Organics at approximately 4:30 packaged organic pasta, and two cases of pasta satuce, pm. The cases are unloaded into a storeroom at the back of the store. Sam inadvertently stacks the cases foratotalof20casesofgoods(the"quota?),toOrganicsonthefirstdayofeveryweek.Organicsagreestopaytoohigh.Theytipover,knockingovera10-gallondramoforganiccookingoilthatspillsontothefloorofthe Niagara's Best $500 for each weekly shipment payable. of organic cooking oil that spills onto the lloor of the storeroom and seeps into the rest of the store, creating within 14 days of delivery. If Oeganics wants to add more cases or to order fewer cases than the regularly a slippery mess. Organics is forced to close down for the scheduled quota, it must provide Niagara's Best with remainder of the day while the spill is cleaned up. The notice of the change at least two business days before the scheduled dellyery date Below are a number of cost of cleaning up and replacing products damaged by the oil is $1.200. In addition, Organics estimates that additicnal tems or clauses contained in the contract it lost $1,500 in profits because it was closed during is between Niagaras Best and Organics. busiest time of the day. a. What categories of typical business contract terms b. What impact do the problems associated with the does each of the following fall into? October 3 delivery have on the continuation of the - This contract will automatically terminate in the contract? event that Organics orders less than the quota c. Discuss the terms of the contract. Are they fair? Art for four consecutive weeks." they sufficient? Would you suggest any changes of - If Nisgara's Best fails to deliver the weekly supply of products to Organics on or before the first day additions to the contract on behalf of either party? of each week, Nisgaras Best shall poy Organics $100 for each day that the delivery is late." - "Niagara's Best shall not be liable to Organics in respect of any losses, damages, costs, or claims resulting from circumstances that are not within the control of Niagara's Best." - This is the entire agreement between the parties, covering everything agreed or understood in connection with the subject matter of this transaction. No oral promises, conditions, warranties, representations. understandings, or interpretations were relied on by either party to execute this contract." - "Except as othenwise provided in this contract, Niagara's Best's liability shall include all damages proximately caused by the breach of any condition or warranty in this contract or