Contract Law and Sale of Goods Act | Assignment
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Added on 2019-11-20
Contract Law and Sale of Goods Act | Assignment
Added on 2019-11-20
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Answer 1Issue: On the basis of the facts that have been provided in this assignment, the issue has to bedecided if Charlie can bring a case against EnviroPro Pty Ltd. in accordance with the generalrules of contract law, including the provisions of the Sale of Goods Act, (Vic). The issue arisesdue to the fact that EnviroPro Pty Ltd. had placed a very large sign in which it has beenmentioned that the company loads its liability regarding any type of damages except fromreplacing the goods that have been established as being faulty when they were sold. Rule: The provisions of Sale of Goods Act (Vic) are applicable in case of the sale of goods only.According to this legislation, there is a difference between the consumer contracts and the non-consumer contracts (Trade Practices Commission v Radio World Pty Ltd., 1989). It has beenprovided by this legislation regarding the consumer contracts that the terms are the same as theterms that are applicable and implied under the Trade Practices Act. The above-mentioned law isapplicable only in case of the contracts that have been concluded in Victoria. In the same way,similar legislations have also been enacted by the other States of Australia.This legislation provides that a consumer contract can be described as a contract that deals withthe sale of goods for less than many thousand dollars or when such contract deals with the sale ofgoods that are usually required for personal, domestic or household purposes and when the goodsare not purchase for the purpose of the sale or being used as inputs in manufacture (David Jonesv Willis, 1934). In this regard, there are certain terms that have been implied by the Goods Actregarding such contracts. Among these implied terms, there is a condition that the goods shouldmatch the description, when the sale is made by description. Implied terms are present in case ofa contract related with the sale of goods, expressly or impliedly when the purchaser had informed
the seller regarding the purpose for which the goods being purchased. In the same way, theseconditions also applied when it can be assumed under the circumstances that the seller shouldhave known regarding the fact that the buyer relies on the skill or the judgment of the sellerwhile producing the goods. What this purpose, it has been mentioned in section 20 of the Actthat there is an implied condition according to which the goods sold, should be fit for purpose incase of the circumstances mentioned above. The requirements related with the fitness for purposeoverlaps with the implied condition that is related with merchantable quality. For example, inGriffiths v Peter Conway, it was provided by the court that the buyer needed to reveal thepurpose for which the goods were being purchased.Application: Enviro Pty Ltd at least a large sign at the entrance. It has been mentioned in thissign that the company is not liable for any damages, except from a placing the goods when it isclear that the goods were faulty at the time of the sale. But in this case, while purchasing CleanAqua, Charlie had clearly told the salesperson of the company that he was looking for a source ofdrinking water and asked if clean aqua was a good product for this purpose. The salespersonassured Charlie that clean aqua will fulfill all these requirements. But the reality was that thewater produced by this product was unfit for drinking. After purchasing clean aqua, Charliestarted to use the water produced by it for drinking and cooking. After some time, Charlie fellsick. Due to the illness, he also had to miss work for five weeks. He also became a victim ofirritable bowel syndrome as a result of which, his long-term quality of life was going to suffer.Therefore in the present case, it can be said that EnviroPro Pty Ltd is liable to Charlie for thebeach of a condition. According to which the goods should have been fit for purpose.Conclusion: it can be concluded in this question that Charlie can bring a case against EnviroProPty Ltd under the general contract laws rules and the provisions of Sale of Goods Act (Vic).
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