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Good afternoon Jo: we design and produce hotel vouchers which we sell business to business. We entered into agreement with a company who wanted to package the vouchers with other products. We then discovered that the company wanted to start selling the vouchers as a stand alone product, which was contrary what we discussed verbally. Hence the decision to terminate the agreement.
No, the other products should have come from other suppliers. I would have experienced problems with other distributors (to the extent that I would have lost business) as our agreement/s with them states that the product can not be sold directly to consumers as a stand alone product.
Can you please explain in more details what you mean with "If you lose on that point then you are in breach but they only have a claim for their actual losses which would be lost profits."?
They didn't even have a product but were in the process of putting a product together. That's what they told us when we signed the agreement Mid February. When they placed their first order Mid April we found out that we were the only supplier on their website (basically they took used our website contents and copied it into their own website). So I guess my question is, how are "lost profits" defined?
And for which duration can they claim the loss of profits? I guess this is for the court to decide ...