Commercial law - Sample Assignment

Commercial Law
Part C – Advice

 As per the question 2 and 3 of the case
study, following issues have raised in front
of you.
 The first issue is whether a valid contract
exists between Angelo and you based on
the statements made by Angelo in the
advertisement.
 The second issue is whether you can claim
for damages from Angelo based on breach
of the contract.
Issues

 It is important to understand the difference between an
offer and an invitation to treat. An offer requires a
commitment from the parties in order to enter into a
legal relationship. On the other hand, an invitation to
treat is just supply of information (McKendrick, 2018).
 As provided in Fisher v Bell case, invitation to treat did
not bound its parties into a legal contract.
 In statutory law, the Consumer and Competition Act
2010 provides that false statements in advertisements
are considered as a misrepresentation.
 In Smith v Land & House Property Corp case, it was held
that any misleading or false statement is considered as
misrepresentation which makes a contract void.
Misrepresentation

 Based on the law, the advertisement posted by
Angelo is considered as an invitation to treat based
on which Angelo cannot be held liable.
 However, you can file a claim for misrepresentation
in statutory law because it provides that false
statement in a contract is considered as
misrepresentation. Based on the law, you can
claim for damages for Angelo.
 Angelo also gave a false statement regarding
business expenses which is common information
that he is expected to know therefore you should
file a claim for misrepresentation.
Misrepresentation

 Non-compliance of a contract result in
breach based on which parties can claim for
damages.
 The remedies for breach of contract include
repudiation, specific performance,
rescission, damages and injunction.
 In Victoria Laundry (Windsor) Ltd v Newman
Industries Ltd case, it was held that parties
can claim for such losses which occurred
due to breach of contract.
Breach of Contract

 In your case, Angelo sold you the van without
disclosing that it is leased. He made a false
representation to lure you into the contract.
 You had to pay the lease for the van which
resulted in increasing your business expenses.
Therefore, you can claim for damages.
 On the other hand, terms regarding working
condition of the loader were not specified in
the contract, therefore, you might face
difficulty in claim damages for the loader.
Breach of Contract

 As per the issues faced by you, I can give you
following advice.
 You should file for misrepresentation by arguing
that the statements made by Angelo in the
advertisement are false and he also gave wrong
information regarding business expenses.
 In case of van, you can claim for damages from
Angelo because he did not tell you the truth which
resulted in a breach of contract.
 The damages for the loader are difficult to claim
because its working condition is not specified in
the contract.
Final Advice

 Victoria Laundry (Windsor) Ltd v Newman
Industries Ltd (1949) 2 K.B. 528
 Fisher v Bell (1961) 1 QB 394
 Smith v Land & House Property Corp (1884)
24 Ch D 7
 Ewan McKendrick, Contract Law (Oxford
University Press, 2018).
References