Contract Law Consumer Law & Negligence - Desklib

This report discusses the legal issues arising from a contract of sales of goods between Oscar and Hedgehog Printing (‘HP’), including negligence, consumer law, and contract law. It identifies the legal rules and provides analysis and arguments for the resolution of the legal issues.

CONTRACT LAW
CONSUMER LAW &
NEGLIGENCE
Table of Contents

INTRODUCTION......................................................................................................................3
Identification of legal issue....................................................................................................3
Resolution of legal issue........................................................................................................3
Identification of Legal Rules........................................................................................4
Analysis and Arguments........................................................................................................5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
Here is the case involves of contract of sales of goods wherein the associated parties
are Oscar, the buyer demanding printer, Hedgehog Printing (‘HP’) is the company and Polly
is its representative at the trade fair. Oscar visits the fair and get impressed with the
Sonic2020 model displayed by HP. There was an agreement and accordingly contract take
place between Oscar and HP through its representative (Polly). However due to negligence of
Oscar while making sense of the mail sent to him by Polly on behalf of the company
regarding model delivered by the company to him, there arise a legal issue. Also, the
company is under fault as it has not mailed for the product that it has displayed in the fair and
the implied agreement between the two parties taken place there was for Sonin2020 and not
for Sonic2002.
Identification of legal issue
There are many legal issues that has been aroused in the given case due to the negligence of
buyer and seller both while executing the contract.
 The first legal issue that take place is the negligence of Oscar while reading the mail
that states the name of the model and its associated specifications. Here, if he has
given the required level of consciousness then Oscar might be able to come across
that he has been delivered with the wrong product against what he has demanded
during trade fair1.
 The second legal issue that can be seen from the case is, HP’s representative must
send an email consisting of an agreement for Sonic2020 and not for Sonic2002, as the
company has displayed the same in the trade fair. What has been displayed and what
has been agreed to sale causes the difference of moral sense.
 Within the agreement, it has been written that Oscar must inspect the product within
the reasonable timeframe and for any defects, it can claim within the duration of 10
days. There was no mention of what reasonable time the company has provided for.
But it is the duty of Oscar to inspect the product as early as possible. However, 3rd
September is quite late to claim for the wrongful act that too after using the product. It
is the duty of Oscar to inspect about the model before using it, where he could come
across the deficiency in specification of what he has demanded and what has been
delivered to him2. Therefore, undertaking no inspection within the reasonable time
can be considered as the third issue associated with this case.
 If the specification has mentioned about the requirement of tonner and the printer is
using more than that level, than it is a defect in the product which must be reported to
the company within the timeframe of 10 days as specified in the agreement.
Resolution of legal issue
From the analysis of the case it seems that there has been no abidance of legal law by
the Hedgehog printing as a customer named, Oscar wants printing press of Sonic 2020 having
maximum speed of 300 ppm. So, it has been mail the agreement to be duly signed and
accepted in which it has been mentioned Sonic 2002 have speed of 300ppm that has been
ignored by him. Thereby, as per the all the circumstances, the solution is that as per the client
requirement that it wants an Sonic2020 could print at a maximum speed of 300 ppm should
1 Abdullah, 2020
2 Wen, 2020

be provided to company3. While At the same time, there is mistake of Oscar also as it has not
effective read things that have been attached in the specification that all has led in confusion
and delivery of wrong model to it.
So as per the sticker price and all specification that has been read by Oscar in the
exhibition it should be provided with Sonic 2020 at rate of $10000 by exchange the
Sonic2002 with Sonic2020. Through paying the deficit amount that is Oscar by paying $2000
or in another words, company by taking the remaining $2000 can provided the sonic2020
having speed of 300ppm4. In order to sought out the problem and legal issue that can be face
by company because of its mistake of including inappropriate specification i.e., sonic2020
provide 300 ppm maximum speed that has harm to customer.
Identification of Legal Rules
Legal rules are regulation and rules that are made by government of the
country to ensure that no harm can be caused to consumer by the organisation. There has
been clear agreement and exchange of products and services between the customers and
company so that no harm or loss can be caused to anyone5. Thereby, different laws that are
relevant to the above case study can be illustrated in detailed as follows:
1. Contract law: It is act or law that state agreement between the two or more parties
related to the way task or what all obligations they are abide to each other. Contract
law of Australia include five key elements such as agreement, consideration, capacity,
intention and certainty. To be a contract, there should be agreement between the
associated parties, then a particular amount or consideration needs to be paid for
getting the products and services. In addition to this, the law stated that both the party
should have capability to enter into the contract such as seller needs to have the
specified products and buyer needs to have money to pay for the products or services
received to satisfied its needs6. Furthermore, they both need to have intention to enter
into the contract or form legal relationship through completing all the legal
formalities. At last, the contract must be clear, complete so that if any type of issue
arises then it can be easily resolved in limited time frame for better outcome.
2. Australian Consumer law: It is one of the law that focus on key areas such as unfair
contract term, consumer guarantees, consumer product safety, sales practice and
avoiding unfair business practices that can adversely cause harm or losses to the
consumer. This law has been specially made to protect the customers from any type of
harm or damage or loss caused by the organisation7. Likewise, the products or
3 (Bant and Paterson, 2019)
4 (Dietrich, 2017)
5 (Ingrid Pagura 2017)
6 (Dietrich, 2017)
7 (Bant and Paterson, 2017)

services needs to be offered as per mentioned, it should be safe, the agreement needs
to be fair and just and no unfair practice is used to cheat the customer.
Analysis and Arguments
All of the issues as identified above are creating a legal position for both parties for which the
manager Lin’ is concerned about before taking any decision regarding what to do with his
customer.
Such as the following:
HP company is legally binding to send agreement for that product only which it has displayed
in the trade fair as the first communication and agreement between the parties take place
there for what has been displayed there. Also, the company is answerable for not delivering
the product as per the specifications. However, it can refrain from the same, as the
communication regarding the wrongful delivery has been made after long duration which
may not be considered as the reasonable timeframe.
Oscar, a buyer in this case is not in a position to claim his money back as he was doing
because the same should be done within the reasonable timeframe8. Also, the ineligibility of
the product due to not performing as per the specifications should be communicated or
reported to the company or its representative within a given timeframe.
The reasonable time within the context of Australian Contract Law has many meanings and
limitations within which the actionable claims must took place. In the given case, regarding
the identification of the wrong model delivery and claiming for it can be done at the time
when the mail for the delivery of the product and its specifications has been delivered. The
reasonable time for this purpose can be regarded as the time falling between the mail received
and start using the product. However, Oscar failed to identify and claim accordingly that he
has been delivered with the wrong model against what he has been seen and demanded
during the trade fair. Therefore, Oscar at this point loses his right to claim for his money back
on the ground of wrong model provided.
If Oscar has been able to identify and claim for the wrong model sent to him within the
reasonable time then the company is legally bounded to restore his claims as it is under legal
duty to provide him with what it has displayed in the fair and not with what it has in its
stock9.
Oscar has also claimed that the speed of printing pages is less than 300 ppm which is what
associated with the specification given for Sonic2020. As he has provided with Sonic2002
which may be having in its specification, a speed of 300 ppm. So, again the claim is
associated with the model and can’t make the company legally liable for the same.
8 Smith and Urbas, 2021
9 Barker, 2019

However, Oscar’s claim for higher tonner consumption was correct but again he needs to
report this to the company within the given timeframe of 10 days. Post this timeframe,
company is not legally liable to entertain his customer’s claim for defects10.
Also, when nothing is written about noise in the specification of the product, then Oscar
should not agree with just verbal agreement of Polly at the fair. He must inspect it as early as
possible and return the product within the reasonable timeframe without making use of it for
long.
CONCLUSION
From the above report it can be concluded that consumers are most important part of
organisation as they are the one that make purchase of products to satisfy the needs of
customers. Contract and Australian consumer law are two crucial law pertaining to the case
study of Oscar in which it has been provided with the Sonic 2002 in case of 2020 having
maximum speed of 300 ppm. At last it can be summarised that because of wrong
specification and products delivered to Oscar, it has to face lot of issue. Such as the printing
was not capable to work at speed of 300 ppm as it do only at 150. Furthermore, when it went
for complain was tripped over a coiled printer cable, suffered concussion thus not able to
work for month. So it needs to be compensated for all the loss and damage that has been
cause to it because of the mistake of the firm.
10 Padroth, Davis and Morrissey, 2017

REFERENCES
Abdullah, N., 2020. Good Faith: An Empirical Study of Australian Cases. In Good Faith in
Contractual Performance in Australia (pp. 121-145). Palgrave Macmillan,
Singapore.
Wen, D. W., 2020. Why the Doctrine of Penalty Cannot Make Australian Unused and
Expired Gift Cards Refundable?. Australian Journal of Competition and Consumer
Law, 28.
Smith, M. and Urbas, G., 2021. Technology Law: Australian and International Perspectives.
Cambridge University Press.
Padroth, C., Davis, P. R. and Morrissey, M., 2017. Contract information asymmetry: Legal
disconnect within the project team. Journal of Legal Affairs and Dispute Resolution
in Engineering and Construction, 9(3), p.04517015.
Barker, D., 2019. Essential Australian Law. Routledge-Cavendish.
Bant, E. and Paterson, J. M., 2019. Exploring the boundaries of compensation for misleading
conduct: The role of restitution under the Australian consumer law. Sydney L.
Rev., 41, p.155.
Ingrid Pagura B A, L. L. B., 2017. Contract law: Do you know what makes a
contract?. Journal of the Australian-Traditional Medicine Society, 23(2). p.96.
Dietrich, J., 2017. Consumer Protection, Recreational Activities and Personal Injury
Compensation: Inconsistency in Need of Reform. NEW DIRECTIONS, p.291.
Dietrich, J., 2017. Misleading conduct by multiple parties and proportionate
liability. Competition and Consumer Law Journal, 24(3). pp.157-172.
Bant, E. and Paterson, J. M., 2017. Consumer Redress Legislation: Simplifying or Subverting
the Law of Contract.