Dispute Resolution in Contract

Description
Khadija Nazari is a first year law student. To help fund her studies, she has started her own
small business, designing, making and selling unique fashion garments.
On 8 March, Ms Nazari entered into a signed, written contract with Sheffield Silks, pursuant
to which she agreed to purchase 30 yards of their “Premium Silk”, for a total price of £1,000
+ VAT.
The order was delivered to Ms Nazari on 16 March, and she immediately began to use the
material to make six bridesmaid dresses that she had designed for one of her customers
who was getting married on 11 April.
To her surprise, Ms Nazari found that the material was pre-cut into individual lengths of three
metres each. She also found that the material was very difficult to work with and that it would
tear easily. The combined effect of these factors was that more than half of the material
ordered had to be discarded during the dress making process.
As a result, Ms Nazari ran out of material on 2 April, and was unable to fulfil her customer’s
order in time for the wedding.
Ms Nazari is seeking compensation from Sheffield Silks as follows:
Original price paid to Sheffield Silks £1,000 + VAT
Loss of profit on the bridesmaid dress contract £28,000 + VAT
Reputational damage £100,000
Sheffield Silks denies any liability and rely on clause 7.1 of their standard terms and
conditions, which reads:
“We accept no liability whatsoever for the quality of goods supplied.”
With reference to legal authority, advise Ms Nazari on the strength of herlegal
position.