Company and Commercial Law: Contract Breach, Negligent Misrepresentation, and Legal Risks

Running head: COMPANY AND COMMERCIAL LAW
1
Company and Commercial Law
Student Name
Institutional Affiliation
Word Count

COMPANY AND COMMERCIAL LAW 2
Company and Commercial Law
For there to be a contract, there has to be an offer and acceptance as well as intention and
consideration. James went into a contract with Lloyd Right Pty Ltd. As the manager, I agreed to
fulfill James’ demands of a minimum of 100 seating capacity and assured James that it would be
the case only to find out later that it did not fulfill the client’s wishes since the tables and chairs I
ordered were slightly larger than the recommended table size for restaurants. According to
Beswick v Beswick, we cannot blame the manufacturers since it is the general rule of a contract
that only the parties can incur liabilities or acquire the rights. Term was not incorporated in the
contract in writing making it not legally binding such as in the case of L’Estrange v Graucob
heard in the Court of Appeal which incorporates the breach of an implied term.
The contract we had evidently had an exclusion clause as it was not in writing and since
there was a contract in writing, then the parol evidence does not matter in the case. Therefore, the
assistance I would offer James would entail offering going back to the manufacturer and asking
for the tables and chairs to be remodeled to fit the size of those used in restaurants. I would not
offer financial compensation as the implied terms were overruled by the terms of the written
contract which makes me not liable for any kind of contract breach. Moreover, since, it was my
duty to check the table sizes before ordering them, I should then try and rectify the situation by
communicating with the manufacturers to at least try to change the models of the products.
Additionally, I will offer to try and sell the extra tables and chairs to recover some of the wasted
cash and reduce the damages encountered by the client.
Assistance and Financial Compensation
In Australia, costs usually follow the event whereby a successful party in the defense is
able to recover the costs from the other party. Moreover, the usual costs do not cover the entire
litigation cost since the court fee scales range from 50% – 70%. Therefore, if taking my
responsibilities under the tort of negligent misrepresentation, I would offer James some
assistance and financial misrepresentation to help settle the damages incurred in the agreement.
According to Donoghue v Stevenson, one must take rational care to avoid omissions or acts that
might harm the other person in the contract which in this case include losses on the part of my
client. Donoghue v Stevenson depends on the negligence of the contract and it holds that in the