Lecture notes
Commercial Law and Practice WS05 D3Y
- Module
- Commercial Law and Practice
- Institution
- City University (City)
Commercial Law and Practice WS05 D3Y
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LEGAL PRACTICE COURSECommercial Law and Practice
Workshop 5: Pre-Session Task
INSTRUCTIONS FOR GROUP Y
You are a trainee solicitor with Leman, Cross & Spiller Solicitors, at London Bridge, London
SE1. You have been instructed by Giles Standish of Standish & Co.
Giles runs a business called Standish & Co. in the south-west of England. He acts as agent
for a number of concerns, most of them connected with interior decoration. He has run the
business successfully for a number of years and has lots of local contacts with retailers,
particularly small chains of shops in the more affluent areas, and interior designers. His
daughter, Freda, helps him by running the administrative side of the business during term
time when her children are at school and he pays her in cash on Fridays.
Giles has a brother, Jack, who manages the premises of a private school in south London.
Jack read an article in a newspaper recently about eco-friendly, energy-saving floor tiles and
was interested to see mention of a local company, Seramica Limited.
Jack suggested that Giles contact Seramica to see if there was a business opportunity
available for Giles. Giles read the newspaper article and contacted Seramica, speaking to
Karim Khan, the managing director.
Giles and Karim have spoken a couple of times on the telephone and have got on well.
Karim has suggested that Standish & Co. should become Seramica’s agents in the south-
west of England, find customers and arrange contracts on Seramica’s behalf. Seramica will
then deliver the tiles direct to the customers and collect payment from them.
Giles would like to do business with Seramica provided that he can agree the following
terms:
1. Commission: in his experience 3% is the going rate in the high-end decoration
business but he knows that Seramica has never appointed an agent before so he
would like to try for 4%.
2. Payment of commission: it is trade practice for commission to be paid at the end of
every month.
3. Travel and other expenses: any such expenses associated with promoting, marketing
and setting up contracts for the sale of the tiles should be paid by Seramica.
However if Seramica agrees the 4% commission, Giles may be prepared to absorb all
or part of such expenses.
4. Length of agency arrangement: Giles reckons this should be a minimum of 4 years.
He will be spending time and money seeing people and promoting a new product in
the south-west and feels therefore that he should have a few years in which he can
benefit from his initial efforts.
5. Termination: if orders drop below 200 square metres of tiles per month, then Giles
wants to be able to end the arrangement.
6. From experience Giles knows that the retailers and designers will want credit
arrangements. Normally they want 6 weeks. As Seramica will be invoicing
customers direct, Giles knows he must make sure that Seramica agrees.
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