This case highlights how Rural Protect’s Contractual Liability Cover protects businesses when agreements with suppliers break down. The cover ensured access to legal expertise and helped secure a positive resolution with minimal disruption.
Business Type: Agricultural Machinery and Grain Handling Equipment
Section of cover: Company Legal Liability
Applicable cover: Contractual Liability Cover
Circumstance: Business sells agricultural equipment and purchased an elevator which was mis-sold by the supplier.
Legal fees value: £5,109
The scenario:
A business specialising in agricultural machinery and grain handling equipment purchased an elevator from a supplier to meet customer demand. The equipment was expected to meet agreed specifications and play a crucial role in ongoing operations.
What happened?
After purchase, the business discovered that the elevator had been mis-sold. It did not meet the promised specifications and was unsuitable for its intended purpose. The business therefore faced a contractual dispute with the supplier over misrepresentation and sought to recover associated losses.
The outcome:
With the support of rradar’s legal advisers, the business pursued the supplier for breach of contract and misrepresentation. The issue was resolved through negotiation, allowing the business to recover its losses without the need for court proceedings.
Things to consider:
- Always ensure that supplier contracts clearly define product specifications and warranties.
- Keep written records of all communications and purchase agreements in case of dispute.
- Regularly review sales and procurement procedures to prevent mis-selling or misunderstanding between parties.
- Contractual Liability Cover can provide peace of mind where complex supply chains are involved.
To understand more about Rural Protect and how it can help rural businesses, call us on 01653 609090 or email enquiries@hbunderwriting.co.uk.
