Withdrawing from the dealership agreement

Assignment Help Accounting Basics

Reference no: EM13969534

Lynx Cars Ltd, the manufacturer of a revolutionary fuel-efficient small car, enters into a five-year dealership agreement with Roadstar Ltd, a northern-based company of car dealers, in November 2003. A clause in the agreement states: ‘This agreement is not intended to be legally binding but the parties honourably pledge that they will carry out its terms.' Roadstar Ltd places an initial order for 2,000 cars to be deliv- ered by the end of 2007, which is accepted by the manufacturer. One month after the successful launch of the car at the Motor Show, Lynx Cars Ltd writes to Roadstar Ltd informing it that, owing to production difficulties, the company estimates that it will be able to deliver only 200 cars by the end of 2007. It further states that it will be withdrawing from the dealership agreement from the end of 2007 to be able to con- centrate its resources on its south of England car dealers.

Advise Roadstar Ltd.

Reference no: EM13969534

Questions Cloud

Was the wait long before you placed your order : Was the wait long before you placed your order. When your order was received was it prepared correctly. Once the order was placed did you have to wait long before it was received.

Can ted enforce the promise : Mrs Harris, the owner of three rented houses in Extown, asks her next-door neighbour, Ted, to collect rent from the tenants for her while she is abroad on business. Ted collects the rents and when Mrs Harris returns she says to him, 'I'll give you..

The saas solution uses a multi-tenant architecture. : Your manager has asked you to investigate a Customer Relationship Management (CRM) solution offered as COTS software for in-house installation and as a Software as a Service Cloud solution. Assume the SaaS solution uses a multi-tenant architecture.

Provide a common and consistent office solution : A school decides it wants to provide a common and consistent "office" solution (a software package that includes word processing, spreadsheets, presentation capabilities, and drawing capabilities) to all students and teachers in the school. The schoo..

Withdrawing from the dealership agreement : It further states that it will be withdrawing from the dealership agreement from the end of 2007 to be able to con- centrate its resources on its south of England car dealers.

At what speed relative to the cart and at what angle to the : A cart is moving horizontally along a straight line with constant speed 30 m/s. A projectile is to be fired from the moving cart in such a way that it will return to the cart after the cart has moves 80 m. At what speed relative to the cart and at wh..

Average joes competing to make an impact : Directions: You are a brand new coffee chain, Average Joes competing to make an impact on the coffee industry through an application similar to Starbucks.com. You are required to provide a design of the program that includes: a pseudocode, and a comp..

Explain how edm could be used in your ais class : Explain how EDM (Electronic Document Management) could be used in your AIS class to eliminate all paper flow between the students and professor

How important is cultural communication in treating patients : How important is cultural communication in assessing, processing, or treating patients? How important is it to understand verbal or non-verbal communications?

User Account

All Pages