Question
Q1. You are a procurement manager for Accord Company Limited. Your company entered into a contract with Metallic Limited for the supply of 500 laptops
Q1. You are a procurement manager for Accord Company Limited. Your company entered into a contract with Metallic Limited for the supply of 500 laptops of a specified grade for distribution to its agents across Ghana to enable it to efficiently keep its records and effectively track sale at its distribution outlets across the country. The contract was awarded through competitive tendering and as aprt of the bid requirements, the items were delivered within 30 days of award of the contract. Metallic supplied the first consignments of 80 laptops on the 20th day after the award and failed to supply the rest. When Accord Limited contacted Metallic Limited, the Managing Director, Mr. Kweku Bentil indicated that they could only import the laptops after they had won the contract and it would take not less than 6 weeks for the items to reach Ghana, as such there was nothing they could do about it. He told Accord Company Limited to count itself lucky, because the 80 they supplied were old stock meant for another customer which they diverted to them. Eventually, after 70 days of the award of the contract, a truck full of laptops arrived at the premises of Accord Company Limited with only the driver who claimed it was not his duty to offload the items. When Metallic was contacted, he claimed that his workers who should have come to offload the items had been sent out on an assignment and so if Accord could get people to offload the items, they Metallic would be prepared to pay them. Because it was threatening to rain, Accord quickly mobilized its workers to offload the truck. .In the process, 20 laptops fell and got damaged. Now both Metallic and Accord are claiming that they are not responsible for the damaged laptops . Accord subsequently distributed the rest of the laptops to its agents and five days after, 10 of the agents called to complain that the laptops were of lower grade and could not support the software that was to be installed on them and as such they could not be used.
a. With the aid of decided cases , discuss the legal issues raised with respect to:
i. Risk;
ii. Time of delivery;
iii. Defective goods
b. Your Managing Director wants to take Metallic to court on this transaction and is seeking your opinion before he calls the company lawyers to instruct them. You are to convince your MD on the remedies available to Accord, if any.
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