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November 12, 2022

Tobias Cash is the owner of a cash and carry warehouse.

Tobias Cash is the owner of a cash and carry warehouse. He is entering negotiations

with a new supplier of olive oil. Tobias has written out what he believes is a

‘satisfactory commercial contract’ that will control the commercial actions between

himself and the olive oil supplier. Tobias has had several broken contracts with other

suppliers leading to him losing money, so he has decided to place the following

clause into the contract: ‘The supplier agrees that on failure to meet their obligations

with regards to delivery, they agree to pay Tobias Cash several times the contractual

cash value of the original agreement in damages to cover loss and inconvenience’.

1. Is this clause an appropriate inclusion in Tobias contract? Explain

your answer

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