LST2BSL- Introduction To Business Law And Ethics
Added on 2019-10-30
8 Pages1872 Words131 Views
1. Under the law of contract, the rights and obligations of a party are decided on the basis of theterms of the contract. Search terms can be expressed or implied. In this regard, there are certainrepresentations that are considered as mere sales puff. For example, a number of claims are madein the advertisements of a particular product or service. In this regard, a sales puff can bedescribed as exaggerated sales talk. While making such statements, it is not the intention of thespeaker that they should be taken literally by the other party (Beatson, Burrows and Cartwright,2010). This would also be recognized by any reasonable person. As a result, no reasonableperson will believe that such a statement was intended to be relied upon. The result is that underthe law of contract, such statements do not amount to a representation of a term of the contract(Baxt, Fletcher and Fridman, 2008). The result of this situation, under the contract law is that noremedy is available to the other party if such a statement turns out to be a false one. In thepresent case also, the statement made in the advertisement that Office Pro X9 is an amazing chairand the statement made by Samantha that it is the best in the market are mere sales puff. Thestatements were not intended to be relied upon by the other party. Any reasonable person wouldnot have relied upon the statements in order to enter into the contract. Therefore, it can beconcluded in this question that the statements were not a term of the contract that was concludedbetween Peter and Forever Furniture regarding the Office Pro X9 chair.
2. While evaluating the terms of the contract, it is significant consider the pre-contractualstatements made by the parties and also their post contractual conduct which may give rise torights and obligations that are in addition to, or independent from the terms determined by theparties to the contract. Generally a false pre-contractual will result in giving rise to the liability ofthe other party. In this context, the terms of the contract can be classified as express terms andimplied terms. Express terms are the ones that have been determined by the parties while inbringing to the contract. The law provides that whenever there is a breach of any term of thecontract, remedies may be available to the other party. In order to be considered as a term of thecontract, it should be the intention of the parties to consider the term as promissory in nature. Asis done by deciding the intention of the parties to create regulations, in this context also, theintention is determined objectively (Ellul & Ellul v Oakes, 1972). Therefore, it has to be seen,what would be thought by any reasonable person, to be the intention of the parties under thecircumstances. In the same way, a pre-contractual statement that amounts to a term may alsoconstitute a representation. There are certain cases, where it was not intended that therepresentation will be promissory in nature. And as a result, they do not amount to a term of thecontract. But in case, such representation is found to be false, the party to whom suchrepresentation has been made has some remedies provided by the common law or under statue.Under the common law, if a contract has been created as a result of a false representation, theparty to whom representation was made can rescind the contract (Atiyah, 2000). In the presentcase also, Samantha had made a statement to Peter according to which the chair providedexcellent back support. In this way, it can be said that Peter had entered into the contract after
Samantha assured him that the chair provided good back support. As a result, this statement hasbecome a part of the contract, and Peter can claim remedies if the statement turns out to beuntrue.
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