Pintex Organics London Ltd Assignment Example | Topics and Well Written Essays - 750 words

Pintex Organics London Ltd - Assignment ExampleThe first problem emerged when the participation entered into a contract with Mixurs Ltd to add it with equipment, but the equipment was found not to be compatible with the installations in the companys premises, hence, cancellation of the contract. The second major problem concerning the contracts occurred when the negotiations for a contract under which the company would provide catering services to members of the International Olympics Committee collapsed because the parties could not agree on the contract scathe. As a result, the company lost the contract and the fiscal benefits that could shake up arisen out of it. Therefore, the company needs to ensure that its interests are in tandem with the English contract law. Also, there is need for the company to review its scathe of agreement to avoid a situation such as that of Miah where the former director of the company enters into contract with the immediate potential client of th e company. In forecast to the cancellation of contract offered to Mixurs Ltd, it was in order as the company was exercising the right to cancel a contract stated on the Cancellation of Contracts made in a Consumers Home or Place of Work Regulations 2008 Act Article 8(1-6) (The National Archives, 2008). However, it would be advisable that the company should exercise caution when entering in contract with other companies when intending to purchase. This will be crucial in ensuring that the company does not incur losses or get substandard equipments (Taylor, 2009, p. 101). Concerning the second scenario where the negotiations amidst the company and the International Olympics Committee collapsed, it is important that such occurrences should be avoided or minimized in the future. It is no doubt that such a contract would have not only offer the company financial benefits but boost its quest to becoming the leading provider of catering services in the forthcoming 2012 Olympic games. Los ing such a contract was not desirable for the companys business prospects. The company should know that it should not necessarily bid the able price but, rather, the consideration should be of sufficient value in the eyes of the law (Keenan, 2006, p. 29). As the Chappell & Co Ltd v Nestle Co Ltd (1960) AC 87 showed, the offeror needs to make a consideration that is sufficient and not necessarily adequate (Sealy and Worthington 2010, p. 45). Applying this in the contract might not have afforded Pedros company the financial rewards they intended but would have provided them with the opportunity to maintain International Olympic Committee as a client for future services, in particular in the forthcoming 2012 Olympics games, hence, more revenues in the future. Apart from that, hosting of such high profile clients would have boosted the reputation of the company thus attracting more clients which will reiterate to more revenues. It can be argued strongly that Miah was not comfortable with the contract terms of the POL Ltd to International Olympics Committee which he may have seen to embody the company both the revenues and the reputation. He was, thus, convinced that it was more worth to resign from the companys directorship and open his own restaurant in order to assimilate benefit from providing services to International Olympics Committee both at that time and in the future. As noted, the companys other problem arise from the terms of agreement for the