Law of contract questions and answers
Co A proposes to enter into joint venture arrangement with Co B to supply product developed by Co B (Product B). During preliminary discussions Co A was briefed on the features of Product B. The parties agreed to enter inti joint venture arrangement to appoint Co A to be the sole distributor of an product B called Product BA in Asia for period of 3 years. After undergoing testing, Co A accepted the delivery of the first batch of Product BA. After the first anniversary of engagement, Co A was still unable to move the product in the market.. reason was that the product was lacking one integral feature which made the product unmarketable. Co A also complained about the outmoded technology. Co B has since sent Co A letter of demand demanding payment for the first batch of goods delivered. Co A refused to make payment citing the problems and wants to terminate the contract.
Advise Co A