The Farmers Mart Feb-Mar 2019 - Issue 61 | Page 5

FARM NEWS 5 • FEB/MAR 2019 MANUFACTURE AND SUPPLY OF AGRI- TECH - WHEN THINGS GO WRONG It is not hard to predict that those British farmers who innovate will be better placed to deal with the challenges both post-Brexit and longer term. Many farmers will be keen to invest in software and hardware agri-tech to support innovation on farms - encouraged by the influence of a younger farming generation of digital natives. This provides a solid market base for agri-tech companies both large and small. BUT what happens when things go wrong? As a supplier, hardware and software faults will happen, but what makes a difference (to the reputational and financial impact) is how you deal with those issues - and a good place to start is equipping yourself with some of the legal basics. Consumers have enhanced legal rights in response to faulty goods or services, but usually if you supply to a farmer, it will be deemed a 69945 business to business - BelmontRegencyLtd - HALF.pdf 1 transaction. The comments in the article assume there is a business to business relationship. The first step is to identify the contractual terms - this is a legal issue, and may not be as straight forward as you think. Did you use standard or bespoke terms? Were those terms incorporated into the contract? Were the purchaser’s terms incorporated instead? You (or your lawyers) will need to complete a factual investigation to ascertain whether any terms were incorporated, and which terms apply. 04/04/2018 14:29:21 You will then be able to get an idea of your rights as a manufac- turer/supplier, with respect to the alleged faulty goods or services. For example, there might be a provision allowing you to repair or replace your product before having to give a full refund. Whether or not there are any written terms related to your supply contract, legislation implies terms that goods should be of satisfactory quality and fit for purpose, and that services should be provided with reasonable care and skill. You could be in breach of these terms if your hardware/ software is not up to scratch, and a breach would allow the purchaser to claim damages for losses arising in connection with the fault. If you put exclusions or limitations of liability into the writ- ten contractual terms, that might assist in protecting your position, however there is legislation (the Unfair Contract Terms Act) which requires those provisions to be reasonable, otherwise they can be deemed void. Where the agri-tech is crucial or detrimental to the purchaser’s key business operations, the damages which can be claimed may be substantial (and in which case, a timely resolution of the dispute will often benefit all sides). We are always interested in meeting our agricultural contacts on site to see what you are doing to innovate your business and how we can help you. Joanne Saye is an Associate in the Commercial Dispute Resolu- tion Team, specialising in disputes within the agricultural sector. [email protected] / 0117 321 8037 FARM Sample Comprehensive Premiums from: Pickups, vans and lorries can be added to fleet policies If you want us to search for the most competitive rates, contact us for a quotation – Hundreds of Farmers have benefited from savings. C M Y CM MY CY CMY K Value: £7,000 On Fleet: £122.52 Value: £15,000 On Fleet: £231.18 Trailers and implements included cover @BelmontRegency from: £175.00 Comprehensive FINANCIAL ADVICE Our advisers can provide advice on all the services shown below Leek Farmer reduced premiums from £1,357 to £941 Chester Farmer reduced premiums from £5,100 to £3,812 Address: Victoria House, 24-28 St Peter’s Churchyard, Derby, Derbyshire DE1 1NN ::   MOTOR : : TRACTORS THE FARMER’S INSURANCE BROKER SINCE 1982 T H E FA R M E R ’ S I N S U R A N C E B R O K E R Since 1982 t: (01332) 362367 e: [email protected] www.belmontregency.com Authorised and regulated by the Financial Conduct Authority @BelmontRegency