Zoe and Brandon are the owners of a business that supplies
Zoe and Brandon are the owners of a business that supplies pasta to… Zoe and Brandon are the owners of a business that supplies pasta to restaurants in Toronto. They recently signed a contract with a famous chef for a one-time purchase of “00” pasta flour. Zoe and Brandon are thrilled, because they see this as something that they can potentially develop into a long-term relationship. However, a couple days later, their supplier in Italy calls them. She informs them that due to a global shortage of durum wheat and increased shipping costs, she is having trouble filling orders. She tells them that if they want their order filled, she will need to charge them $300 more than the original agreed upon price. Zoe and Brandon are shocked and angry. They are just starting out their business and if they fail to supply the famous chef, word could get out that they aren’t reliable. Zoe and Brandon agree to pay the additional $300, but only if their Italian supplier can deliver two weeks early. She promises to do so. Fortunately for Zoe and Brandon, the flour is delivered two weeks early, as promised. However, they subsequently receive an email from their supplier that she has only received partial payment (i.e. not the additional $300). She informs them that she has contacted a lawyer who has advised her that she that can successfully sue Brandon and Zoe for the remaining amount. (A) This advice is true or false? (B) Explain. Business Management Business Law CLAW 122
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