Fine Wines Limited (FWL) contract with Wine supplies Limited (WSL) to purchase regular supplies of fine wines for sale to the public. The wine is purchased by FWL on credit facilities provided by WSL. A consignment of wine is delivered in error to the local students union and mysteriously disappears. WSL insist that FWL pay for the consignment, threatening to cut off FWL's credit facilities (upon which FWL are dependent) if they do not pay. FWL protest to WSL about their harsh attitude, but pay for the lost consignment in order to protect their business. Later, FWL learn that WSL have not been paying Customs duty on wine imported from the continent. FWL threaten to report WSL to the Customs authorities if they do not refund the money FWL have paid for the lost consignment and, further, discount all further supplies of wine to them by 30%. 

Advise the parties as to whether, and if so how, their legal obligations are affected by the threats made.

Answer rating: 100% (QA)

In this situation the actions of both parties may have legal implications aFo... View the full answer