Business Law: Sale Contract, Exclusion Clause, Promissory Estoppel

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

BUSINESS LAW1
Question 1
Issue
To determine whether any of Jimmy’s statement regarding the MowMaster 6000 are a
part of the sale contract
Rule
Under Common law, the statement of a person pertaining to a sale contract could be
categorised into four parts on which it is assessed. A statement could be: a) puff b)
representation c) opinion d) term of contract.
Puff or puffery is a phrase which is exaggerated by a seller in order to attract the
attention of a buyer, which should not be conceived in a serious way by the buyers1. On the
other, situation where a statement is not supported to be deemed as a promise, then in that
case the statement shall be considered as a representation. Term of contract refers to any
provision that forms a part of a contract, giving rise to a contractual obligation2. Opinion is
the personal view of the seller. Representation is to be distinguished from terms of contract
as:
1) Knowledge of the parties
In the case Bissett v Wilkinson the court had held that it was not misrepresentation of
the seller as he conveyed that the farmland that was sold could accommodate 2000 sheep if a
team works on it and therefore it was expected that the buyer would have sufficient
knowledge either to accept or dismiss the opinion of the seller3.
2) Importance of the term
A term of contract is of immense importance without which a contract shall cease to
exist, however it is not so in case of representation as it is not of any significance.
1 McKendrick, Ewan. Contract law: text, cases, and materials. (Oxford University Press (UK), 2014)
2 Ibid.
3 Bissett v Wilkinson [1927] AC 177

BUSINESS LAW2
Application
In the given scenario, Joanna approached Jimmy for buying a sturdy lawnmower for
which Jimmy made the given statement. The statement that conveyed that MowMaster6000
is the one for Joanna and it was amazing is to be considered as an opinion of the seller. The
statement about the blades cutting through anything and never getting bent or blunt was a
puff which could be assumed to have been made to allure the buyer to purchase it. While the
statement that conveyed that the mower would get her work done in no time along with the
message that the mower would help Joanna fit more clients was an opinion as it was
completely subjective and had no supportive evidence. However Jimmy’s statement
pertaining to the design being made in Germany with the best quality parts is a terms of
contract as it was made on the basis of the knowledge or expertise that the seller had. It was
expected from Joanna to believe Jimmy’s statement as he had the expertise in that field of
work. Therefore due to jimmy’s statement in context of the make of the mower and its parts
is to be determined as a terms of contract as they were made in the light of the contract sale.
Conclusion
Therefore a part of jimmy’s statement shall be treated as a part of the sale contract.
Question 2
Issue
To determine whether a sign in applicable to Joanna’s sale contract with Jimmy
Rule
A sign or symbol could be made part of a sale contract, provided that it has been duly
attached to the term of the contract. However, a sign, in order to be applicable and valid,
should be visible to the buyer before he agrees to make a certain purchase from the seller.