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The Impact of Exclusion Clause | Assignment

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Added on  2020-04-01

The Impact of Exclusion Clause | Assignment

   Added on 2020-04-01

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Q 1Issue: The issue in this case is related with the impact of exclusion clause mentioned on the signplaced at the gate of EnviroPro Pty Ltd, which excludes the liability of the company for anydamages.Rule: Apart from the general rules of contract law, in the present case, sale of goods Act (Vic)also applies. It makes the remission that the provisions of this legislation apply only in case ofthe contracts related with the sale of goods. This Act provides that a difference exists betweenconsumer and on consumer transactions (Carpet Call Pty Ltd v Chan, 1987). The Act alsoprovides that the terms that can be implied under Trade Practices Act also apply in case ofconsumer contracts concluded in Victoria.The law defines a consumer contact as a contract related with the sale of goods for less than$20,000 or when it deals with the goods that are generally acquired over domestic purposes andwhen these goods are not going to be used for sale or inputs in the process of manufacture(Crawford v Mayne Nickless Ltd., 1992). Therefore, as mentioned above, there are certainconditions that can be implied in case of these contracts. One of the implied conditions. In suchcases is the condition according to which the goods should match the description, when thegoods have been sold by description. Terms can be implied in case of a contract dealing with thesale of goods expressly or impliedly when the purpose behind the purchase of goods, has beenrevealed by the purchaser to the seller (Jillawarra Grazing Co v John Shearer Ltd., 1984).Similarly, the implied conditions are also applicable when the circumstances are of the naturethat it can be assumed that the seller should have been aware of the fact that the buyer is relyingon skill of the seller to make the purchase. According to section 20 of this legislation, and
The Impact of Exclusion Clause | Assignment_1
implied condition is present, which requires that the goods should be fit for purpose under theabove-mentioned circumstances.Application: in the present case, a large sign has been placed at the entrance of Enviro Pty Ltd.This sign mentions an exclusion clause according to which the company will not be liable forany damages suffered by the consumers except to replace the goods, that too in cases where thegoods were shown as being faulty at the time of sale. In the present case, when Charlie went topurchase equably, he had toured the salesperson of Enviro Pty Ltd that he was going to use theproduct for reclaiming drinking water. The salesperson also gave an assurance that you are thatthe water will be fit for this purpose. On the other hand, in reality, the water produced by thisproduct was not fit for drinking purposes. Therefore, when Charlie consumed this water for sometime, he became ill. As a result, he was forced to miss work, and he also started to suffer fromirritable bowl syndrome. As a result is quality of life was also affected adversely. Under thesecircumstances, it is clear in this case that Enviro Pty Ltd. had breached the terms of the contract,particularly the requirement according to which the goods should be fit for purpose. Conclusion: in this case, a claim can be initiated by Charlie against Enviro Pty Ltd.
The Impact of Exclusion Clause | Assignment_2

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