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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70508
Experience:  Over 5 years in practice
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I am an online retailer . I recently came to an exclusive agreement

Resolved Question:

I am an online retailer . I recently came to an exclusive agreement with one of my suppliers to exclusively sell their products on Amazon uk. I have emails between us that reflect this agreement but no formal contract other than these emails. This supplier has written to me to advise me that they are now selling direct to Amazon.
As part of the exclusive agreement I have invested in substantially more stock . I will be left unable to sell this stock unless I heavily discount. This supplier was one of our biggest sellers and the loss of their products will impact our business significantly. Do I have any grounds for enforcing our agreement or at least, compensation ?
Submitted: 1 year ago.
Category: Law
Expert:  Jo C. replied 1 year ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
Did you negotiate a cancellation clause?
Customer: replied 1 year ago.
No
Customer: replied 1 year ago.
?
Expert:  Jo C. replied 1 year ago.
Did they give you any notice at all or just immediate effect?
Customer: replied 1 year ago.
immediate effect, no notice
Expert:  Jo C. replied 1 year ago.
Ok.
Clearly there was a contract and they are in breach.
However, contracts can never be binding for life. Even if you didn't agree a means of giving notice the law will imply one. That would usually be one term of the agreement or, more commonly, one month.
If the agreement isn’t divided up in terms of months then I do think you could argue that you are entitled to be compensated for the stock you bought that is exclusive to them. The law of contract seeks to put both parties in the position they would have been in if the contract had been fully performed - in this case you would have sold the stock. You could argue you have a lost profits claim too but I wouldn’t pursue that.
What you cannot do though is binding them to you forever.
Can I clarify anything for you?
Jo
Jo C. and other Law Specialists are ready to help you
Customer: replied 1 year ago.
No, That's ok. Thanks for your help