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Business Laws Questions Answers

   

Added on  2019-11-20

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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
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1BUSINESS LAWSAnswer 1Issue The issue in this case is to find out whether the representation stating PRO X9 is an amazingchair and/or is the best on the market is a term of the contract or notRule There is a significant difference between a puffery and a term of a contract. a puffery has nolegal significance whereas a term of a contact is legally binding on the parties to it. As providedby the case of REA Group Limited v Fairfax Media Limited1a puffery is a statement made bythe seller to praise overly about his products. However a reasonable person is deemed todifferentiate between a term of a contract and a puffery. The concept of puffery comes to the context through the case of Carlill v Carbolic Smoke BallCompany2the defendants provided that the advertisement was a mere puff but the court heldotherwise. In the case it was provided by the court that if the puff is enough to induce a prudentperson into the contract than it cannot be regarded as a puff and would be considered as a term ofa contract. In Australia a clause is a puffery or a term of the contract is also determined through theapplication of the principles provided in the carbolic case. In addition the subject matter of thecontract is also taken into account to determine whether a clause is a term or a puff. If a puffinduces a person to get into a contract it would be regarded as a tem and can lead tomisrepresentation.1 [2017] FCA 912 [1892] EWCA Civ 1
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2BUSINESS LAWSApplication In the given circumstances it has been peter has opted to buy a chair from forever furniture. Theshop owner Samantha after listening to the requirements of peter in relation to a chair provideshim that PRO X9 is an amazing chair and is one of the best on the market. According to theprinciples of puffery discussed above it is clear that the show owner is making an exaggeratedstatement in relation to her product. Any reasonable person would be able to understand that it isa puffery and not a term of the contract and would not get induced into the contract through suchrepresentation. In addition the term is also not related to the subject matter of the contract whichis to provide the customer with a suitable chair in relation to their needs. Conclusion Thus PRO X9 is an amazing chair and/or is the best on the market is not a term of the contractand is a mere puffery. Answer 2Issue The issue in this case is to find out whether OFFICE PRO X9 giving proper lower back supportwhich would allow peter to work comfortably is a term of the contract or not? Rule In contract law the intention of the parties to bind each other to the contract is not analyzed bythe application of the subjective intention of the party but the objective intension as provided inthe case of Esso Petroleum v Mardon3. The objective intention is found out through the3 [1976] QB 801
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