Yotata cars GB PLC v motor retail and buyers case Analysis
Yotata Cars GB PLC contracted with Motor Retail Ltd for Yotata Cars GB PLC to supply Motor Retail Ltd with 100 Yotata Zaris cars; payment to be made on 31 January 2018. Yotata Cars GB PLC also contracted with Naza Ltd for Yotata Cars GB PLC to supply Naza Ltd with 600 Yotata Zaris cars, and with Ozzie Cars Ltd to supply Ozzie Cars Ltd with 300 Yotata Zaris cars. All 1000 Yotata Zaris cars from the three transactions above were shipped from their factory in Japan, and stored at Yotata’s distribution centre in Bristol, UK by 30 October 2017. The 1000 Zaris cars were shipped and stored in bulk, and had not been individually assigned to Motor Retail, Naza or Ozzie Cars. Motor Retail collected 100 Yotata Zaris cars on 10 November 2017 from Yotata’s distribution centre, and commenced selling them at their retail outlets from 12 November 2017. All 100 Zaris cars were sold by Motor Retail by 31 December 2017. Due to an unrelated fraud committed by Motor Retail’s Managing Director, Motor Retail became insolvent on 15 January 2018, leaving Yotata unpaid for the 100 cars. On 16 January 2018, Yotata instructed its lawyers to contact the buyers of the 100 Zaris cars from Motor Retail, asking them to return the cars to Yotata on the grounds that Yotata had not been paid for them. Naza’s contract with Yotata required Yotata to deliver their 600 Zaris cars units to Naza’s warehouse on 22 November; although Yotata had moved 600 Zaris cars into a different part of their distribution centre, and marked each one of the cars with Naza”s name, they had not yet been delivered to Naza. Naza has not paid for those Zaris cars to date. An explosion then destroyed Yotata’s distribution centre in Bristol, UK on 24 November 2017; amongst the items destroyed in that explosion were the remaining 600 Zaris cars which had been ordered by Naza and the 300 cars ordered by Ozzie Cars. Ozzie Cars had paid Yotata in full for its 300 Zaris cars on 23 November. Advise the parties as to the issues of payment and the passing of property and risk in the 1000 Zaris cars.