2nd INTERNAL NEGOTIATION COMPETITION,

2020

GENERAL FACT SHEET

QUARTER FINAL ROUND

(MR. TAYLOR AND MRS. SMITH)

“Trend Setters” is a renowned boutique owned by Mrs. Smith. The boutique is famous for
providing the clients with the exact orders as demanded by them. The reason behind their great
ratings and reviews is that Mrs. Smith has never failed to satisfy her customers with what they
want. The boutique was opened sixteen years ago and has been purchasing its raw materials from
“Tie Dye Manufacturers” owned by Mr. Karl since the start. Due to old age and ill health, Mr.
Karl couldn’t handle the shop anymore and gave the responsibility to his son, Mr. Taylor.

Mrs. Smith was planning to further expand the reach of her business and on one fortunate day, she
finally got an order from a big celebrity client for her and her family’s tailor-made clothes. Since
the future of her business depended pretty much on this, she wanted everything to be smooth and
perfect. Mrs. Smith promised to deliver the order within 2 weeks.

Mrs. Smith without any delay called Mr. Taylor and ordered the required raw material and cloth
pieces as per the specifications of the client. She also made advance half payment to him with a
promise of timely delivery of asked raw material and clothes.

On the delivery, Mrs. Smith noticed that it was not the material that she ordered.

Ordered Delivered
1. Pure cotton shirt material Terry cotton containing Polyester
2. Blend-wool material for coat Cheap wool material
3. Hand woven pure Pashmina cloth Machine made Pashmina cloth
4. Pure silk suit pieces Artificial synthetic silk
5. 100% pure crepe fabric 80% pure crepe fabric
6. Navy blue suit piece Sky blue suit piece

She called Mr. Taylor multiple times and surprisingly he didn’t pick any of her calls. Keeping in
mind the shortage of time, she decided to reach out to other manufacturers. Since Taylor was the
only one to deal in all kinds of cloth material in her city, she had to find and go to the manufacturer
in another city all by herself which took a lot of her time. Not having connections and any prior
dealing with them, she had to purchase all the required material on expensive rates. She had to hire
extra tailors at short notice to complete the order on the promised time. All this made her
unavailable for entire 2 weeks which also affected her client base and loss of new orders.

A few days later, as Mr. Taylor still wasn’t picking up the calls, Mrs. Smith sent a letter through
the solicitor demanding compensation for breach of contract. In response, Mr. Taylor got shocked
and arranged lawyer to act on his behalf.

DISPUTE -

Mrs. Smith’s claims are clear and straightforward. She requires the money of advance payment,
extra expenses incurred in transportation, purchasing of material on expensive rates and hiring of
extra tailors due to wrong and untimely delivery by Mr. Taylor along with sufficient compensation
for breach of contract and lost client base.

On the other hand, Mr. Taylor responded that he had sent the same material as per the
specifications ordered by Mrs. Smith and there was no mix up of the order. Moreover, his father
was suddenly hospitalized due to ill-health and he was the only one to take care of him.
Preoccupied with the responsibilities of the house and having less experience in handling the shop,
he might have been unavailable for few days but there were other options available too to contact
him apart from calling.

According to Taylor when Mrs. Smith gave him order, he re-confirmed it and then only made the
delivery of the material to her. He doesn’t consider him liable to pay any compensation.