Contract Law Sample Assignment - Doc

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Question 1No, by analysis, the term “OFFICE PRO X9 is an amazing chair and/or the best on themarket” was not a term of this contract. In the law of contract, negotiation statements can becontractual terms, representations, or mere puff. Contractual terms have contractual obligations.Also, mere representation which then turns out to be untrue yet the induced the customer maybecome contractual terms if they induce the customer to make the contract.1On the other hand,mere puff are unrealistic or exaggerated opinions that have no facts, and therefore they have nobasis of actions in the law of contract.In determining the status of each statement, the courts usually employ four factors. Thefirst one is the parole evidence rule.2This rule governs written contracts, and it restricts theparties only to the terms that written in the contract. Other verbal terms are just representations.Second is the relative expertise. This one governs contracts where the person who gives thestatement happens to be of greater knowledge.3In other words, statements from an expert madeto the customer may cause the client enter into the contract. So, if the client changes the positionfollowing those comments, that could likely be a term. For example, Schawel v Reade [1913]4The claimant told the defendant that he planned to use the horse breeding purposes. Thedefendant assured the claimant that the horse was good and there was no need for vetexaminations. The horse turned out to a breeding disease. The court held that the statementguaranteeing bleeding status was a contractual term.Next is the value of the statement. If the seller relies on that statement, then the statement1Kenneth W Clarkson et al, Business Law. Text And Cases (Cengage Learning, 13th ed, 2015).2Sarah Riches, Vida Allen and Denis J Keenan, Keenan And Riches' Business Law (Pearson/Longman, 9th ed, 2009).3"Contractual Interpretation In Indian Evidence Act Jurisdictions: Compatibility With Modern ContextualApproach?" (2013) 13(1) Oxford University Commonwealth Law Journal42 IR 81
becomes a term. An example of this is the case of Ecay v Godfrey [1947].5The claimant boughta boat from the defendant. The defendant said the boat was all right, but it needed anexamination. Later the inspection revealed that the boat was defective. The court found thestatement a representation since he even advised the claimant to inspect the boat beforepurchasing. The last factor is the timing of the statement.6The duration of the time between thecontract and the statement. Lengthy time gap signifies a representation while short time signifiesa term. Following these explanations, “OFFICE PRO X9 is an amazing chair and/or the best onthe market” is more of a trader’s puff meant for advertisements.Question 2Yes, it the term that the OFFICE PRO X9 provides sufficient lower-back support to allowPeter to work the whole day comfortably. This issue is a matter of applying one of thedetermining factors as discussed in question one. In particular, this question falls in the approachto the knowledge and skill of the seller, who is the party with advanced skills. The application ofthis rules works in two ways. For one, it can be a statement coming from the seller, who is theparty with special skills, then making a statement to the buyer who has no skills. On the otherhand, it can be a statement from the buyer who possesses no knowledge clarifying what hewants, and this information aims to help the expert decide on the best item to sell to the buyer.7In this case, if the response of the seller makes the buyer change the position, that statementwould become a term.A scenario similar to this situation is the case of Dick Bentley v Harold Smith Motors[1965].8Bentley asked Harold Smith Motors to find a car which should be in good condition.580 Lloyds Rep 2866Richard Stone, Text, Cases And Materials On Contract Law (Routledge, 2nd ed, 2014).7Richard A Mann, Barry S Roberts and Len Young Smith, Smith & Roberson's Business Law (South-WesternCengage Learning, 15th ed, 2012).8Dick Bentley v Harold Smith Motors [1965] 1 WLR 623
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