Contract Law

New Fads Ltd, (the seller) agrees to sell computer components on “fob” terms to Bell Ltd., (the buyer) a company based in Nigeria. Shipment scheduled for October, fob Liverpool. The following fax was received from the buyer on 07 April: “We intend to nominate The Moyvale which will be entering port on 13 April. Ship will be ready to load on 15 April”.

 

Owing to an oversight of an employee of New Fads Ltd (the seller) the fax was not brought to the attention of New Fads Ltd. until the 15th April. It is uncertain if normal loading rate (specified in the contract) will enable completion of loading before the expiry of the shipment period.

 

In the interim the goods are kept in a warehouse in Manchester. On 14 April a massive strike was called by rail workers which paralysed the rail network.

 

Advise the parties to the fob contrac

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