Aldwych Legal advised James Carter, owner of a long-established London high-street retailer, in a commercial dispute after a supplier repeatedly failed to deliver exclusive seasonal stock on agreed terms. The matter concerned business law and commercial contracts, with urgent operational and financial consequences for the client.
What Happened
In late summer the retailer entered a supply agreement with Westfield Wholesalers Ltd for exclusive seasonal ranges. The contract set delivery schedules, minimum order quantities and a fixed pricing structure to align with peak trading weeks.
As the season approached the supplier missed several agreed delivery dates, sent partial consignments and sought to vary prices at short notice. Stock shortages led to empty shelves, customer complaints and a significant drop in sales during the key trading window.
Attempts by James Carter to resolve matters informally failed. Over a six-week period correspondence escalated, stock gaps widened and the retailer could not rely on future deliveries from the supplier.
Legal Issues
- Whether the supplier’s conduct amounted to a repudiatory breach, entitling termination and damages under common law.
- Construction of contractual clauses on delivery obligations, price variation and exclusivity (ordinary principles of contract interpretation applied to commercial terms).
- Quantification of recoverable losses: lost profits, wasted marketing spend and additional costs reasonably incurred in sourcing replacement stock (duty to mitigate).
- Appropriate dispute route: litigation, settlement negotiations or alternative dispute resolution, and compliance with the Civil Procedure Rules and relevant pre-action protocols.
Our Approach
Aldwych Legal reviewed the contract, all correspondence and the client’s sales data to build a clear chronology showing breach and commercial impact. We advised on preserving evidence and on actions that would avoid affirming the contract.
We issued a formal letter before action in accordance with the Civil Procedure Rules and relevant pre-action protocols, setting out the breaches and heads of loss. Parallel to the letter we assisted the client in sourcing alternative suppliers in Manchester to limit further disruption.
Accepting the commercial importance of reputation, we proposed and conducted without-prejudice settlement negotiations designed to achieve compensation and an orderly exit from the supply relationship.
Outcome
The supplier accepted it had failed to meet key contractual obligations. The parties reached a negotiated settlement: a financial payment for lost profit, a contribution towards replacement sourcing costs and an agreed timetable for winding down the supply relationship.
James Carter was able to transition to new suppliers with minimal further disruption, recover a proportion of his losses and protect customer confidence and brand reputation.
Result / Why It Matters
This matter demonstrates Aldwych Legal’s practical expertise in business law and commercial contracts: precise contractual analysis, early pre-action engagement and pragmatic negotiation delivered compensation and preserved the retailer’s long-term commercial position.