•JoeCo. recently made a relatively large sale of computers to a new customer, The Gamery. As part of the sale, the customer ordered 12 extremely fast and expensive ABC video adapters, which is not an item you regularly stock, so you would have to special order them.
•At the time for shipment of the computers per the agreement, you still hadn’t received the adapters from your vendor. Per instructions from the customer, you went ahead and shipped the computers and were to ship the video adapters separately when you received them from your supplier.
•When they came in, you packaged them all up and had them picked up by UBS (United Box Service) for delivery. That was two weeks ago and the customer has not yet received them. The customer is boiling mad that he hasn’t gotten the last of his order and is threatening to sue for breach of contract, to return the computers and to cancel the entire order.
– Can the customer cancel the entire order?
– It appears the adapters are lost. As between JoeCo. and The Gamery, who bears the loss?
– What could JoeCo. do to protect itself in advance of this type of shipping situation happening again?
Facts and issues:
Identify the parties; JoeCo (seller) and The Gamery (buyer) USB (carrier)
First issue: JoeCo jeopardize the entire order for some additional supply-the adapters- that he can’t stock or control.
Second issue: It seems that JoeCo (seller) has breach the contract when he has not include the adapters at the time of shipping then The Garmery (buyer) accepts his remedy to deliver them later when arrive.
Third issue: JoeCo has shipped the adapters using a carrier but there is not information who takes the risk of loss during delivery. It seems that JoeCo has breach the contract one more time.
Fourth issue: The Garmery (buyer) is threatening to sue JoeCo for breach of the contract because the adapters have not