Scenario for Comfy Seating Ltd and Richmond Events Ltd.
The Claimants (‘Comfy’) specialise in the supply of temporary stands for seating spectators and the provision of temporary towers for television cameras for public events, sports tournaments, pop festivals and the like.
Comfy undertook to provide stands and towers for the Respondent (‘Richmond’) which, in turn, had been contracted by the Albion Golf Club to provide catering and other spectator requirements, as well as media facilities, in connection with the national Open Golf Championship to be held at the Club.
The work was undertaken on the basis of a ‘Letter of Intent’ from Richmond that provided in terms, among others, that it confirmed its intention to enter into a sub-contract for the package of works and that the sub-contract:
‘will incorporate INFO XV Works Contract (‘the Conditions’) … We hereby request you to commence the package of works forthwith.
‘In the event that a contract is entered into between us then the terms and conditions of the contract will apply retrospectively to all work carried out pursuant to this letter. In the interim you will be bound by and will comply with the Conditions.
‘In the event that the said contract is not entered into between us then we will reimburse you the proven costs reasonably incurred by you in complying with this authorisation, all of which must be substantiated in full to our satisfaction, up to the value of £285,379. You must request further authorisation from us before exceeding this figure.
‘Notwithstanding any other term in this letter, nothing herein confers or purports to confer any rights to enforce any of its terms on any third party.’
For those who are not familiar with the INFO XV Works Contract, it is divided into a number of separate documents, only one of which is entitled ‘Conditions’ (the other parts include the Invitation to Tender, the Tender, the Articles of Agreement and the ‘Agreement’).
In fact, no formal contract was ever signed. Comfy started work at the club in reliance on the Letter of Intent. Shortly after this, the Club discovered that a famous golfer was to take part in the Championship and that applications for tickets exceeded all expectations. The Club decided, therefore, to instruct Richmond to increase the number of stands to accommodate spectators; whereupon Richmond invited Comfy to supply the additional units.
On conclusion of the Championship, Comfy presented its invoice for about three times the amount of the figure mentioned in the Letter of Intent. Richmond refused to pay the amount sought on the grounds that there was no formal contract. Comfy have brought the matter to arbitration.
The post Discuss the issues are referred to an arbitrator for decision, U.K. Set out the questions/issues in the logical sequence and in the order that an arbitrator would consider. appeared first on Homework Aider.
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