Commercial Law

Running head: COMMERCIAL LAW 1
Commercial Law
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COMMERCIAL LAW 2
Question 1
In considerations there should be an offer. Mikey stops and offers Daphne to tow her
car to the next garage. She promises to send her $200 to his address but a month later he has
yet to receive his promise. I am sure that Mikey was not told to stop or was waved down. I
am sure that he did it as a good gesture and as a Good Samaritan just to help Daphne (Cieplak
& Leefatt, 2017). Daphne never promised to make it worthwhile after the service since there
could be a written agreement or a witness at the garage. She simply maybe forgot to make the
payment.
Question 2
a) Capacities of minor and companies-minor contract of 1969
The common law defines a minor as a person under the age of consent which is 18 years.
A minor is treated as an infant. The general principle in a minor’s company contract is that a
contract made by a minor in presence of an adult is binding to an adult but not necessarily to
the minor. After attaining the age of 18, or the age of the majority, if the minor ratifies the
contract by confirming the made contract made while he or she was a minor is bounding. In
this contract, there is no need for a consideration for ratification of the act (Governatori, et
al,2018).
A contract with a minor is not void. Any money transferred under the contract is
recoverable if there is failure of consideration. In the sale of goods Act, the minor is liable if
the good are sold and delivered at a reasonable price and the minor is treated as a quasi-
partner.
In this case, Pete and Delwyn are liable and are obligated to honor the contract. Although
the loans officer had made miscalculations on their ages, they have a contract since the sales

COMMERCIAL LAW 3
of goods Act stipulates that there was reasonable price. The loans officer is also capable of
signing a contract on behalf of the company since he acts as an agent of the company in
agency law. The contract is enforceable upon the two turning 18 and considerations is not
made (Johnson, & Sohi, 2016).
b) This is misrepresentation of information in a sales of goods Act.
There are three types of misrepresentation during a transaction. There is a fraudulent,
negligent and innocent misrepresentation. In this case, this is a fraudulent misrepresentation.
In order for a misrepresentation to be actionable by the law there, Jane must show that Paul
1. Issued a false statement on the car by lying to the husband
2. There was an act of inducement/reliance on the information provided to be true. Paul
had told Jane’s husband that the car is good and assured him that there was no need
for a mechanic to check it.
The remedies for fraudulent misrepresentation of facts are payment of damages or rescission.
This is contract can either be rescinded or Paul should pay for the damages in transmission
failure of $ 3,500.
c) Legality
1. The first contractual term is void. This is because, driving another truck does not
necessarily mean that it is a competitors truck. If the trucking company can prove that
an employee after a contract is working for a competitor around then this may be
valid but driving a truck does not necessarily mean it is in direct competition with the
business (Haigh, 2018).
2. Valid contract- since it is in direct competition with the core business. The business
has stipulated well that after three years the person is not allowed to establish another