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We accepted a purchase order from a Polish multinational

Customer Question
Hi, we accepted a purchase...
Hi, we accepted a purchase order from a Polish multinational to a value of €800k by sending our order acceptance form with our standard T&C's. They have now informed us they wish to cancel the PO about 3 months after our acceptance. It is too late for us to sell the product to another customer, due to the seasonal nature of the product. Do we have a right to claim compensation for our loss of profit and costs?
Submitted: 2 years ago.Category: UK Law
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Answered in 16 minutes by:
6/3/2015
Solicitor: Alex J., Litigator replied 2 years ago
Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3,794
Experience: LLB, LPC, DELF
Verified
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Did your acceptance form say all orders are subject to your terms and conditions? Did they at any point reject your T and Cs?
Does your acceptance form contain a right of termination?
Does this multinational have a base in the UK?
Kind regards
AJ
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Customer reply replied 2 years ago

Did your acceptance form say all orders are subject to your terms and conditions?

Yes.

Did they at any point reject your T and Cs?
No
Does your acceptance form contain a right of termination?
No
Does this multinational have a base in the UK?
Yes

Read more: http://www.justanswer.com/uk-law/94k3b-accepted-purchase-order-polish-multinational.html?rpt=901#ixzz3bzUIcfcv

Solicitor: Alex J., Litigator replied 2 years ago
Hi,
Thank you.
With no right of termination by cancelling the order they are in breach of contract and you are entitled to sue them for all losses that are a) reasonably foreseeable and b) a naturally occurring consequence of the breach.
You also have an obligation to mitigate your losses - is there anything you can do to minimise the damage? What is the value of your loss?
Also what was the location of supply of the other party? If the Polish company has a UK establishment then you could sue them in the UK courts?
I look forward to hearing from you.
Kind regards
AJ
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Customer reply replied 2 years ago

Relevant part of our T&C's:


2. ORDERS


2.1 No quotation issued by the Seller shall constitute an offer to supply Goods but the terms contained in any quotation (including prices) will normally remain fixed if a contract is made within 30 days of the date of the quotation. 2.2 The Seller will be under no liability for any order received until the order is accepted by the Seller in writing on its Order Acknowledgement Form at which time a contract will be


formed between the Seller and the Buyer (a Contract"). 2.3 A Contract may only be cancelled or varied with the Seller's consent and the giving of this consent shall not in any way prejudice the Seller's right to recover from the Buyer full compensation for any loss or expense arising from such cancellation or variation. 2.4 These Conditions together with the Special Conditions constitute the Contract for the supply of the Goods referred to in the Special Conditions. No variation of or addition to such Contract shall be binding unless expressly agreed or confirmed in writing on the Seller's behalf by a Director or other duly authorised officer of the Seller.



I am flying to Poland next week to attempt to sell the product to another customer, but not hopeful. Looks like I should demand compensation for my losses and assume litigation! Thanks a lot!

Solicitor: Alex J., Litigator replied 2 years ago
Hi,
Thank you.
You did not agree to vary the order so they are in breach of contract it is as simple as that.
Even if you resell the goods you will still be able to claim your losses for breach of contract.
Can you quantify your losses?
What you need to prove in court:
- You have a contract - proved by the offer and acceptance;
- The contract was breached;
- That breach resulted in loss to you and you can prove the losses?
I look forward to hearing from you.
Kind regards
AJ
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Customer reply replied 2 years ago

Many thanks for this Alex. All that is left is for you to recommend a good lawyer in Southampton!

Solicitor: Alex J., Litigator replied 2 years ago
Hi,
Thank you.
You are in luck, Southampton is something of a legal hub and there are many exceptional lawyers.
I cannot recommend individual firms as it is against the rules of the site, but if you contact the Law Society www.lawsociety.org.uk they can recommend someone for you - you need a commercial litigation specialist.
Kind regards
AJ
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Alex J.
Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3,794
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Experience: LLB, LPC, DELF

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