Nigel is the owner of a small drapery manufacturing business. He has several contracts with three fabric suppliers. Nigel believes the only obligations he owes to his suppliers are recited in the contracts. Under what circumstances would Nigel know immediately that his assumption was wrong?
A) a situation whereby a supplier's misconduct adversely affects his business interests
B) a situation that enables one party to eliminate the application of the Sale of Goods Act
C) a situation where an entire contract clause forestalls suppliers' arguments relating to his guarantee
D) a situation where a price-variation clause doesn't allow a supplier to offset increased costs

Question

Quizplus · Accepted Answer

Nigel may realize that his assumption was wrong if a supplier's misconduct adversely affects his business interests. In such a situation, Nigel may have to rely on other legal obligations or principles, such as tort law or the duty of good faith and fair dealing, to seek redress for the harm caused by the supplier's misconduct. This would demonstrate that the contracts alone do not exhaust all the obligations and rights that Nigel may have in his relationship with the suppliers.

Nigel Is the Owner of a Small Drapery Manufacturing Business