Discuss the relevant law, and the legal position of all the parties.?

Your whole case was flawed from the get go, verbal contracts mean nothing in a business negotiation if you don't have documentation backing it. Gadgco Ltd’s purchasing director should be fired on the spot for gross negligence for not know that you make business deals with contract on paper not words. Ex prate communication outside of written agreement specially in a business deal has no value. Only thing that matter is whats in a written contract.