I am writing in respect of your last visit requesting advice on certain issues you raised at our previous meeting. In few words, this letter will address the concerns you raised and advice on the available legal means to seek redress, including the probable cause of action to be taken against Arco Limited.
Background/Facts
In our last meet you told me that you purchased an electric cooker from Arco Limited for the cost of ?12,000 including VAT, with serial number 987654 to run your new restaurant.
You confirmed that the purchase of the cooker was done over the telephone with Joan Taylor, the assistance sales director of Arco Limited.
In addition, you said Joan Taylor recommended one of the company’s own name model, the Arco T450, which was ready for immediate delivery. You acted on the recommendation and order the cooker which was delivered the next day. After delivery, you engaged the service of an electrician to install the cooker. You shortly tested the cooker, and everything looked all right.
Issue
- You said you received s defective electric cooker from Arco Limited which resulted into several problems as stated below:
- The heat supplied to the inbuilt kept cutting out, causing the food to cool and stick to the griddle.
- The door to one of the ovens kept springing open part away throughout the cooking time, resulting in drop temperature and food spoilage.
- You said in the middle of the lunchtime service at the restaurant, the cooker suddenly burst into flames. Though you tried to get the staff and customers to safety, but the fire caused an irreparable damage to most of the kitchen equipment.
- You had to close the restaurant and it was unlikely to be re-opened for at least two weeks. Consequently, you lost money and suffered professional embarrassment as one of the customers at the grand opening ceremony published a review in the Foodie Magazine.
Total cost of loss suffered
You said the total costs of loss you incurred is ?65,000, which is broken down as follows:
- Cost of the cooker ?12,000
- Replacement of kitchen equipment ? 30,000
- Redecoration ? 10,000
- New carpets and curtain ? 8,000
- Lost of profit ? 5,000
Legal Position
However, based on the weight of the available evidence, it can be said that the cooker supplied by Arco Limited did not serve the purpose it was bought for. At the grand opening ceremony, the heat supplied to the inbuilt griddle kept cutting out, which made the food to cool and stick to the griddle. Also, the door to the oven kept springing open part away leading to the drop in temperature and food spoilage.
On this ground, the cooker supplied by Arco Limited was not of satisfactory quality, therefore Arco Limited has breached the implied terms of the contract as provided for under the law in England and Wales. The law clearly states that any goods and services supplied in the course of business must be of satisfactory quality.
Effects of the breach of contract
Now that the breach of the implied terms of the contract has resulted into loss, there is a possible cause of action to take against Arco Limited to enable you recover some of your losses.
To help you achieve this, I must explain the possible options you have, including their benefits and problems. You may choose litigation or reach settlement through an alternative dispute resolution. Choosing litigation is very expensive, time wasting, stressful and is conducted in the public glare. But the decision is binding, and the court can enforce it on the losing party. Alternatively, you may choose an alternative dispute resolution to reach settlement which is cheaper, flexible, less stressful, quicker and confidential; but the decision is not binding. I would recommend the Alternative Dispute Resolution, especially mediation.
Next Step
It is advisable you put all relevant receipts and documents in place pertaining this matter as they would be used to succeed in your claim. Before we end the meeting, I will let you know that there are pre- action protocols to follow in making your claims, and it also has cost implications.
Meanwhile, I look forward to your further instruction on this matter. You may either call me on the telephone, email me or book an appointment to talk over the mater.
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