Business and Corporate Law Case Analysis

Business and
Corporate Law
Student’s Name

Part A
Issue
Issue involved in the case is to check that Whether the purchaser of the car,
Ms. Belinda has any right in the subjective contract and if yes that what
rights these are.
Rules
According to provisions of Contract Law, consent involved in a case must
be a valid and free consent. Misrepresentation is a term that is closely
connected to a valid consent. This is a situation where an offeror shows a
fact or law to offeree to obtain the acceptance in the contract and these facts
and laws are not true in actual (Business Dictionary, 2018).
Misrepresentation can be of many kinds and according to the type of
misrepresentation, remedies are prescribed under law (Davies, 2018).

In the case of Fraudulent Misrepresentation, an innocent party can cancel
the contract. In addition to this, the same can also ask for the damages.
Consideration is also an important factor of a Contract. It was held in the
case of Chappell v Nestle [1960] AC 87 that consideration in a contract
need not to be adequate always but the same must be sufficient. Further,
consideration can be anything as decided by the parties but the same must
be according to the provisions of law.
Application
In the given case, Belinda has purchased a car from American Car Sales.
The sales person made a misrepresentation to Belinda about the
manufacturing year of the Car.
Belinda has come to know about the existence of misrepresentation of sales
person after 3 months of the purchase of the car.