Case Study - Nick v Tony
Nick is a supplier of eco home pods: mobile units providing living accommodation, manufactured entirely from sustainable and renewable sources. The wood used in his designs is locally sourced cedar and is decorated with plant-based paints and varnishes. Tony sells wood for floors and cladding. Nick in his discussions with Tony explains how the whole of his business depends on his reputation as an ethical builder and any deviation from his environmental policies would destroy his credibility in the eco home pod marketplace.
Nick is therefore very strict that all wood must locally sourced and all varnishes and paints are plant rather than using chemical based product. Tony promises that this is not a problem and that he will be able to comply.
Nick and Tony enter a written agreement which specifies that the contract will last five years, the delivery dates, amounts, price and wood type. The contract does not include terms as to sourcing and paint/varnish requirements.
Three months into the contract, Nick discovers that when the locally sourced cedar is not available Tony has been making up the order with wood sourced from Canada, but was not charging any more money for it. It also comes to light that all the wood finishes supplied by Tony use the same chemical-based varnishes and paints.
Advise Nick, who wishes to terminate the contract and recover potential damages.