Question

Using the IRAC Method I need help answering this:

Background:

Carmen runs a business that buys wood from Spain, makes toys in Russia, then sells these to Australian companies for resale. Carmen runs her business from Russia. One day, the company she purchases the wood from in Spain fails to make a delivery Carmen had paid for in advance. The very next day, despite making a shipment of toys to her largest Australian client, the company refuses to pay for the toys. Neither company provides a reason for their actions to Carmen.

Advise Carmen on the remedies available to her under the relevant international convention.

Note: All countries are treaty members of the relevant convention. Please cite specific principles and related international conventions and articles in your advice.

Answer 1

Ans. Issue- (i) Wood supplier fails to make delivery on time causing distress in business     (ii) Australian company refusing to pay for the toys

Rule- Where a business faces any problem in business due to some other person, he can sue such other person in the court of law provided that they are bound by a legal contract and the power to sue is present in the contract between the parties.

Analysis- In the given scenario, Carmen has faced difficulties due to: (i) Failure of Supplier company to deliver goods on time causing a delay in production of toys. Therefore, resulting in loss of business. (ii) Refusal of Australian company to pay for the toys. Therefore, causing financial crisis to Carmen.

Conclusion- Therefore, the following remedies are available to Carmen: (i) To sue both the companies for loss in business and financial distress. (ii) To claim for damages caused.