SQE

Objective: establish whether the client can reject the stock or claim damages. Issues: inspect the goods, preserve evidence, check the contract and assess the limitation clause. The client should notify the supplier promptly, avoid selling the goods and obtain photographs and an independent report. If the clause excludes negligence or limits liability, its wording and statutory reasonableness must be assessed. The client should also check the contractual notice and dispute-resolution provisions. Next steps: send a reservation-of-rights letter, quantify the direct loss and diarise the contractual and statutory deadlines.

The answer identifies the commercial objective, preserves evidence and gives sensible immediate steps. It applies the possible statutory control but does not identify the relevant sale-of-goods terms or distinguish rejection from a damages claim clearly enough.

Model answerObjective and facts: confirm the delivery date, inspection, use or resale of the stock, the defects and the client's preferred remedy. Law and application: check the express terms and implied terms as to satisfactory quality and conformity, then assess whether the breach permits rejection or supports damages. Construe the limitation clause and consider any statutory reasonableness control. Advice: notify the supplier promptly, preserve the stock and evidence, avoid further loss and reserve the client's rights. Next steps: obtain an expert report, calculate the loss, check notice and limitation periods, and consider negotiation or proceedings if the supplier does not respond.