ABSTRACT
Peter owns a garage where he sells and repairs Sporta cars. He has a contract with Sporta plc under which he is obliged to buy from Sporta all the spare parts required for his repair business. This agreement was entered into last year, and is to last for 15 years. It is linked to a mortgage agreement under which Sporta lent Peter £20,000 to refurbish the garage. Peter has just discovered that Sporta are supplying Delia, who is the Sporta dealer in the next town (five miles away), with spares at a 10% discount. As a result, Peter’s repair business is unable to run at a profit. He would be able to buy spares from other suppliers much more cheaply.
