661816_A24_T1: UK and Transnational Commercial Law

Assignment
Module Title
UK and Transnational Commercial Law
Module Code
661816
Assessment Element
Hypothetical Problem Question (100%)
Module Leader
Dr Misbau Lateef
Word Count
4,500
First Sit or Resit?
First Sit
Reassessment by resubmission or new assessment?
Resubmission
Submission Date
Trimester 1 Assessment period 6 January to 17 January 2025
Thursday 9th January 2025
Assignment Title
Hypothetical Problem Questions
Instructions:
Answer ALL questions. The questions carry equal weighting. It is recommended that you allocate approximately 1,500 words to each question.

Question 1: UK (Domestic) Sale of Goods
Global Innovations Ltd, a UK-based company specialising in eco-friendly products, has recently encountered several challenges with their business transactions. In July 2024, they sold 5000 bamboo chairs to GreenStadium Ltd for a new sustainable sports venue. The contract specified delivery by 15 August 2024, which Global Innovations met. However, GreenStadium Ltd has now informed Global Innovations that they are facing financial difficulties and cannot pay for the chairs.
2
In a separate transaction, Global Innovations purchased a state-of-the-art recycling machine from EcoTech Solutions in May 2024. The machine, which cost £200,000, was advertised as capable of processing 500 kg of plastic per hour. However, since its installation, the machine has consistently underperformed, processing only 300 kg per hour. Global Innovations reported this issue to EcoTech Solutions, who sent engineers to inspect the machine in June and July, but the problem persists.
Lastly, in September 2024, Global Innovations ordered 500 recycled plastic sheets from LocalPlastics Ltd. The contract specified sheets of 1m x 2m, but upon delivery, Global Innovations found that about 50 sheets varied significantly in size, and the total delivery was short by 10 sheets.
Advise Global Innovations Ltd on the following:
a)
What are their legal rights regarding the unpaid chairs sold to GreenStadium Ltd? Can they reclaim the goods, and if not, what other remedies are available?
b)
Do they have grounds to reject the recycling machine from EcoTech Solutions? If so, what is the process for this, and can they claim any damages?
c)
What options do they have regarding the inconsistent delivery from LocalPlastics Ltd? Can they reject the entire shipment, and what factors would influence this decision?

Question 2: International Sale of Goods (CISG)
SunPower Systems, a solar panel manufacturer based in Birmingham, UK, entered into a contract with ElectroSol, a company in Morocco, on 1 June 2024. The contract was for the supply of 1000 high-efficiency solar panels for a new solar farm in Morocco. According to the contract, the panels were to be delivered by 15 November 2024, with a total price of £500,000, payable in two equal installments. The first installment was due upon signing the contract, and the second was to be paid within 30 days of delivery. The contract also specified that the solar panels should have a minimum efficiency rate of 22% in converting sunlight to electricity.
SunPower Systems delivered the panels on 10 November 2024. Upon inspection, ElectroSol found that 50 panels were visibly damaged, likely due to poor packaging. Furthermore, initial testing showed that 100 of the undamaged panels had an efficiency rate of only 20%, below the contracted specification. As a result, ElectroSol has refused to pay the second installment of £250,000, claiming that the goods are not in conformity with the contract.
SunPower Systems argues that the damage to 50 panels is minimal considering the total order, and that the efficiency rate of 20% is within acceptable industry standards. They insist on full payment and have threatened legal action.
Assuming the United Nations Convention on Contracts for the International Sale of Goods (CISG) applies to this contract, advise SunPower Systems on the following:
a)
Analyse ElectroSol's right to refuse payment and the remedies available to them under the CISG for the issues with the delivered panels.
b)
Evaluate SunPower Systems' position in compelling ElectroSol to accept the goods and pay the full contract price, considering the relevant CISG provisions.
3
c)
If SunPower Systems is found to be in breach of contract, what options do they have to remedy the situation under the CISG?

Question 3: Applicable Law and Jurisdiction
WindTech Innovations, a wind turbine manufacturer based in Hull, UK, entered into a contract with GreenEnergy Solutions in March 2024. GreenEnergy Solutions is a company registered in Germany but operates primarily in Spain, with no physical presence in the UK. The contract is for the sale of 10 advanced wind turbines, valued at €5 million, to be installed in a new wind farm in northern Spain.
The contract was negotiated via email and video conferences, with the final agreement written in English. However, it does not contain any clauses specifying the applicable law or jurisdiction for dispute resolution. The contract stipulates that WindTech Innovations is responsible for the delivery and installation of the turbines in Spain, with the work to be completed by December 2024.
In August 2024, a dispute arose when GreenEnergy Solutions claimed that the first two installed turbines were not performing to the specified standards. They have threatened to cancel the contract and seek damages. WindTech Innovations disputes these claims and wants to ensure that any legal proceedings take place in the UK.
Advise WindTech Innovations on the following:
a)
Analyse which country's law is likely to govern the contract and whether the English courts would have jurisdiction over this dispute, explaining the basis for your answer.
b)
Discuss the factors the English courts would consider in determining whether to accept or decline jurisdiction, including the potential impact of relevant regulations (such as the Brussels I Recast Regulation or its UK equivalent post-Brexit).
c)
Recommend steps WindTech Innovations could take to strengthen their position regarding their preference for UK jurisdiction in future international contracts.
Assessment Submission (for student information)
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