Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Issue 1
Issue
The issue is to ascertain if the statement made by Jimmy in regard to the MowMaster 6000
would be held as a part of the contract of sale
Rule
A statement made in a contract of sale could be divided into four categories for assessment,
such as:
 Term of contract
 Representation
 Puffery
 Opinion
Term of contract comprises of a term clause or condition of a contract which is an essential
part of the contract, forming a contractual obligation. While, representation refers to a
statement, which cannot be considered as a promise. Puffery is a statement usually made by a
seller in order to allure a buyer. Opinion on the other hand is a person’s own perspective upon
a particular thing. A term of contract out of all the parts of the statement should be held as
valid.
Terms of contract should be differentiated from representation as per:
 Significance
The importance of a statement determines whether it is to be implemented or not. A
term of contract is more important than representation as a contract would not exist
without its terms and conditions. A Party's knowledge

2BUSINESS LAW
It is held that a party to the contract must have enough knowledge to determine
whether to agree or disagree to what the seller states about a particular thing1.
Application
Here, the statement regarding the Mowmaster 6000 being amazing is Jimmy's opinion. The
statement where Jimmy promises that the blades of the mower would never get blunt or bent
is a puffery, made to attract Joanna. The statement made regarding the mower working in no
time and bringing in more clients cannot be logically promised or supported hence to be
considered as a representation. However the statement regarding the more being
manufactured in Germany by using the best polity parts could be e determined as term of
contract, as the comment it was based on Jimmy's expertise as a seller.
Conclusion
A section of the statement made by Jimmy is to be considered as a term of contract.
Issue 2
Issue
The issue is to ascertain the applicability of the sign that was hidden in regard to the contract
between Jimmy and Joanna.
Rule
A sign that represents an exclusion clause is to be held as a part of a contract provided that
such sign has been acknowledged by the other party to the contract. Such sign must be made
visible to the buyer before the contract of sale is signed or agreed as discussed in the case of
Olley v Marlborough Court hotel2. The court had held in this case that a sign that was put up
1 Oscar chess v Williams [1957] 1 WLR 370
2 Olley v Marlborough Court hotel [1949] 1 KB