As the paper discusses .there are two contracts existing between the parties. The first contract is between Military Supply Ltd and the British Ministry of Defense while the second contract is between the Military Supply Ltd and Motor Parts plc. The contract between Military Supply Ltd and the British Ministry of Defense is for the purchase and delivery of 500 vehicles which will be used by the Ministry of Defense in its field operations. The second contract on the other hand is a contract of service between Military Supply Ltd and Motor Parts Ltd where the former hire the services of the latter to manufacture the 500 vehicles for the client of Military Supply Ltd which is the British Ministry of Defense. The relationships of the parties are defined and limited by the contracts that they entered into.From the report it is clear that the obligations of the parties in this case vary according to their participation in the transaction. In the case of British Ministry of Defense, its obligation is towards Military Supply ltd. As buyer of the vehicles, the Ministry of Defense is obliged to deliver payments when the provisions and the objects specified under the contract are satisfied. On the part of Military Supply Ltd, its obligations are towards the Ministry of Defense as well as to Motor Parts. In the case of the Ministry, Military Supply Ltd is bound to deliver the 500 vehicles as per the specifications of the ministry in a timely manner. .
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