Case Studies on Contract Law: Bruce and Owen Rowland

These case studies discuss the issues, rules, and applications of contract law in the cases of Bruce and Owen Rowland. In the case of Bruce, the issue is whether he is bound by the contract, and the conclusion is that he shall be liable. In the case of Owen Rowland, the issue is the right of Owen Rowland against Restaurant Equipment Pty Ltd, and the conclusion is that the company cannot refuse to take the oven back or do something for it.

Case study of Bruce
Issue-
Whether Bruce is bound by the contract.
Rules-
• A contract made in intoxicated state shall not
bind the parties.
• Gibbons v Wright (1954) CLR 423

• if the contract was ratified by the party after
he came to a sober sense, it can be
enforceable.
Application-
Bruce had confirmed the contract when
he sobered up.
Bruce cannot refuse it afterwards.
He would commit a breach of contract.

Conclusion-
Bruce shall be liable.

Case study of Owen Rowland
Issue-
Right of Owen Rowland against
Restaurant Equipment Pty Ltd.
Rules-
• The law relating to contract and unfair
terms of the contract needs to be
highlighted in this case.

• The terms of the contract should be
specifically and clearly stated to other party.
It is the duty of a party to communicate
the conditions that the contract may carry.
No contract should be formed on the
basis that it hides the material fact from the
other party.

• A valid contract should expressly state the
terms of the contract to the parties.
Director General of Fair Trading v First
National Bank [2002] 1 AC 482; [2001] UKHL 52

Application-
The terms of no warranty was not expressly
conveyed to Owen Rowland.
It was their duty to convey the ‘as is’ terms
to the purchaser.
The Restaurant Equipment Pty Ltd shall be
liable for the defect in the oven that it was not
reliable.
They can not refuse to take back the oven or
do something for it.

Conclusion-
Restaurant Equipment Pty Ltd cannot refuse to
take the oven back or do something for it.