Breach of Contract due to act of third party. Can party sue third part
12-Oct-2023 (In Breach of Contract Law)
A(Supplier) and B (Procurer) entered into a contract and in one of the clauses of the contract mentioned that A should supply all the goods which are in compliance with all the laws of India and the clause also mentioned that it should ensure that all its sub-suppliers should be ensuring that no laws of India are violated. C who used to supply raw materials to A violated various laws and was caught by Govt. of Madhya Pradesh for violating various environmental norms, and it was in limelight that B’s products were produced by violating various environmental norms which lead to depreciation in the sales of B. In such a scenario, What are the remedies available to B against C and against A?
I have perused the contents of your query and would like to advise you to initiate a strongly worded legal notice to the concerned suppliers seeking consequential damages on account of loss of business. Further would advise you to share the copy of the contract. For further consultancy and legal services you may contact us.
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