Question

George Company Limited (GCL) is desirous of purchasing ventilator machines to enhance its operations of its employee’s medical service company, due to the increase of the Covid 19 related illnesses in Trinidad. The Operation Manager of GCL has located an ideal ventilator machine in China from Wuhan Machine Services Limited (WMSL). GCL has dealt with WMSL over the last 10 years on several business matters, but never with respect to ventilator machines.

Mr. Noitall from GCL, developed specifications of the ventilator which they required and emailed it to WMSL. WMSL submitted an offer to GCL which consist amongst other information the following,” the ventilator will be of the same type submitted to other companies in Trinidad and Tobago” It also included information on price, freight on Board etc.

GCL accepted WMSL’s offer via official letter dated the 3rd March 2020.

Mr. Noitall on a subsequent visit to Jetson Incorporated saw that they had the same ventilators that GCL ordered from WMSL and requested from Jetson’s management to take a closer observation at its engineering capabilities. However, to his amazement, it was of a very poor standard and he subsequently reported that fact, to his executive management. GCL immediately decided via email to inform WMSL that they are no longer interested in purchasing the ventilator machines.

WMSL responded shortly thereafter to GCL’s email and advised GCL that they had a valid agreement with WMSL and they will treat any decision by GCL not to proceed with the transaction as a breach of contract.

Kindly advise GCL whether or not they can avoid this agreement.

Answer 1

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