The effect of European law:
- Article 85 of the Treaty of Rome makes void any practices which
adversely affect competition within the European Union.
Questions
1 Fred orders some garden plants and seeds from Gardenwell, to be delivered in one
month’s time. He pays for these at the time of ordering. He also orders a quantity of
fireworks from the same firm, to be supplied in time for his 30th birthday party. George
is to pay for these on delivery.When the plants and seeds are delivered they do not have
the correct labelling, required by law, and by this time Fred has decided that he does not
want the plants anyway, as he can obtain them from another, less expensive, source.
Gardenwell supply the fireworks, but the delivery person does not ask for the
money. George enjoys his birthday party, during which someone informs him that
Gardenwell supplies fireworks without the required licence. George then remembers
that he has not paid Gardenwell, and decides not to do so.
Advise Gardenwell.
2 Critically consider the difference between a contract being found illegal and one being
void for policy reasons.
3 Analyse the circumstances in which the courts will uphold a contract in restraint of
trade.
Illegality 207