The legal issues involved in this case are in relation with Canadian Contract Law and agent principal relationship between mentioned below:
The contract is between Longhaul Transport Limited (Longhaul) and Transshipments Inc. and even previously Longhaul has billed Transhipment Inc. thus, Longhaul has the right to sue Transhipments for non-payment of transport charging for transporting the goods of Factorplus Product Inc.
In Bhasin v. Hrynew, the honourable Supreme Court stated the importance of performance in a contract along with implications of breach of contract. The Transshipments even though is the commission agent however, is responsible to make payment to the Longhaul thus, shall be sued by the later (Miller, 2015).
Since, Longhaul has performed its part of the contract thus, the company deserves payment for transporting the goods of Factorplus. Hence, the court will ensure that the Longhaul get it’s due for transporting the goods of Factorplus on behalf of Transshipments (Arthurs, 2018).
The contract agreement should clearly mention the parties to the contract including any agent if involved in such contract. It is the responsibility of the parties to a contract to correctly discharge the liabilities under the contract.
Arthurs, H. W. (2018). The hollowing out of corporate Canada?. In Globalizing Institutions (pp. 29-51). Routledge.
Miller, R. L. (2015). Business Law Today, Standard: Text & Summarized Cases. Nelson Education.
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