Contract – quality problems
This article looks at the contractual and commercial issues that can arise as between a producer (P) and his agent or distributor when wine proves to be of unsatisfactory quality. For a more complete overview of product liability see defective products.
Agency relationship
If the agent/distributor is actually an agent (A — see terminology) the rejection by a customer of any quantity of the producer's wine, small or large, may not impinge on A in an immediate and direct financial sense. The sale contract will have been between P and the customer, and any dispute over payment or compensation for sub-standard wine will be between the two of them.
But A will want to maintain the best possible relationship with the customer, to whom he may supply a wide range of products, from numerous producers. That relationship could be damaged if P does not adequately address quality problems and/or their financial cost to the customer. If the customer loses confidence in A, he could suffer .....
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