LW372 - Commercial Law

Instructions

Please take heed of the instructions in tutorial 1.

Tutorial 2 Question

Bulk Storage Enterprises is a major distributor of a wide range of household goods. It has two

large warehouses in downtown area where it stores imported as well as locally manufactured

household goods ready to be packed and sold but only on orders.

It engages in wholesale and not retail trade. In April 2014, Smart Purchases Limited ordered 2

tons of high grade plain wheat flour from Bulk Storage Enterprises at a price to be fixed just

before delivery of the goods in June 2014.

The flour is stored in large silos in the warehouse. A week before delivery Bulk Storage

Enterprises asked its store manager to process the 2 tonne- order put in by Smart Purchases

Limited and to also ensure that delivery took place as agreed.

The machines which fill the sacks with flour were only able to process 1 tonne of the order

before breaking down due to mechanical failure. The other tonne of the order could not therefore

be processed.

On the delivery due date, Bulk Storage Enterprises loaded the 1 ton of plain wheat flour (made

up of 200 fifty kilogramme sacks) into a specially designed delivery truck to be conveyed to

Smart Purchases Limited.

On reaching the premises of Smart Purchases Limited, it was discovered that half a tone was

damaged by rainfall that seeped through the tarpaulin. Smart Purchases Limited refused to take

delivery of the whole consignment of 1 tonne delivered by Bulk Storage Limited.

Advice Bulk Storage Limited.