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Contract Law Case against EnviroPro Pty

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Added on  2020-04-07

Contract Law Case against EnviroPro Pty

   Added on 2020-04-07

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1. Discuss whether Charlie has a good case against EnviroPro Pty?Issue: In this question, the issue is if Charlie has a claim against EnviroPro Pty Ltd. in view ofthe general rules of contract law, including the Sale of Goods Act (Vic). This issue arises due tothe fact that a large sign was present at the gate of the company according to which the liabilityof EnviroPro Pty Ltd. has been excluded regarding any damages suffered by the consumers apartfrom the replacement of the goods if it has been proved that the goods were faulty when theywere sold.Rule: It needs to be noted that the Sale of Goods Act (Vic), applies only in cases of sale ofgoods. Moreover, a distinction is made by this legislation regarding the consumer and non-consumer contracts. Therefore, when a consumer contract is involved, according to thislegislation the terms similar to the terms that can be implied under the Trade Practices Act arealso applicable to such contracts (Trade Practices Commission v Radio World Pty Ltd., 1989).The provisions of this legislation apply only to the contracts that are found in Victoria. However,other states also have similar legislation applying research contracts. The Sale of Goods Actdefines a consumer contract. According to this provision, any contract for sale of goods worthless than $20,000 or when the contract deals with the goods that are generally sold for personal,domestic or household purposes. On the other hand, when the goods were not sold for beingresold or used as input in the process of manufacture, it is also a consumer contract. In this way,certain terms can be implied under the Sale of Goods Act regarding the consumer contracts.Among these terms, there is a term according to which the goods sold by the traders shouldmatch the description, particularly when the sale is by description. These implied terms are
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present in the contract for sale of goods. In cases where the consumer has expressly or impliedlytold reseller, the purpose for purchasing the goods. In the same way, these terms can be impliedwhen the circumstances are of the nature that the seller is aware of or should have been aware ofthe fact that the consumer depends on the skill or judgment of the trader. It has been mentionedin section 20 of this legislation that an implied condition is applicable according to which thegoods sold should be fit for purpose in such a case. It is worth mentioning that the requirement ofthe goods being fit for purpose overlaps with another implied condition according to which thegoods should be of merchantable quality. In Griffiths v Peter Conway , the court has expressedthe opinion that the buyer needs to tell the particular purpose for purchasing the goods. Application: Enviro Pty Ltd. had placed a large sign at the gate. It has been mentioned in thisnote is that the company cannot be held liable for any damages apart from replacing the goods,that too, in cases where the goods were quality at the time of sale. On the other hand, Charlie hadinformed the salesperson that he was looking for a good source of drinking water and asked ifClean Aqua was a good product for this purpose. The salesman gave an assurance to Charlie thatClean Aqua was a good product for this purpose. On the other hand, in reality, the waterproduced by this device was not fit for drinking. After consuming the water for some time,Charlie falls sick. As a result of these illness, he is forced to quit work for five weeks. He alsodevelops irritable bowels syndrome, which will have any effect on his quality of life for long-term. Consequently, it can be said in this case that a breach of contract has taken place. Conclusion: in view of the above-mentioned reasons, it is clear that Charlie can sue Enviro PtyLtd in the waters with the general rules of contract law and the provisions of Sale of Goods Act(Vic).
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