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[PDF] Introduction to Contract Law

   

Added on  2021-02-18

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Table of ContentsINTRODUCTION...........................................................................................................................3Question 1: ......................................................................................................................................4Explain the meaning of a 'representation' and how a mere representation can be distinguishedfrom a term of a contract..............................................................................................................4Question 2: ......................................................................................................................................5What are the grounds in which dismissal from employment would be unfair at law, whichMonica should explain to the boards of directors........................................................................5Question 3. ......................................................................................................................................7What are the main duties governing company directors that Monica should explain to the newmembers of the board? ................................................................................................................7Question 4........................................................................................................................................9Explain the principles governing the award of damages in the Law of Tort. In what ways maydamages be limited? ....................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONLaw is a system which contains rules that will governs a society. There are three legalsystems in United Kingdom viz. English law, Scots Law, and Northern Ireland law. There is nosingle legal system in United Kingdom. The supreme court of UK is the apex court that hashighest authority in all criminal and civil cases in England and Wales and Northern Ireland andfor all civil cases in Scots law. The Parliament of UK consists of two houses viz. House of Lordsand House of Commons (McKendrick, 2014). This report covers, meaning of representation andhow it is different from contract, unfair dismissal grounds, duties of the boards of directors andprinciples governing award of damages in Law of Tort. Question 1: Explain the meaning of a 'representation' and how a mere representation can be distinguishedfrom a term of a contract.In the given case, Monica is a Human Research Manager at Young and Ernst LLP. She isplanning to buy a new car for which she visits a local second hand car dealership called Cars RUs. The car salesman, Chandler convinced Monica to buy 2006 Ford Mondeo by quoting thewords “this is the best car in the world, if you do not buy it you will be missing out”. Monicarelied on Chandler’s expertise and bought the car which broke down after two weeks ofpurchasing. She now wishes to sue the car dealership (Lumineau and Henderson, 2012). From the above case, it is cleared that Monica relied on the representation made byChandler before entering into the contract to buy the car. “Representation” is a statement whichpresent a fact or an intention, that is made during contractual negotiations. The other meaning is,an action that can be transformed into a statement of fact. It is made before entering into acontract. If a false representation has been made and buyer entered into a contract by relying onthe representation then such buyer may cancel and claim damages in limited cases, he hassuffered from such false representation. It is necessary to know the difference between arepresentation and a contractual term for the remedies available in both the cases. On the otherhand, a contractual term is a term that governs the rights or obligations of another. A contractualterm has legal binding. If a representation is a term of the contract, then party may claim thedamages and also have a right to terminate the performance of the contract. The differencebetween these two are judged on the basis of various factors such as expertise or knowledge of

the parties, language used etc. The ultimate criteria to decide on whether statement is a term or arepresentation lies on the context in which it was made. In the case of Oscar Chess Ltd v Williams [1957], a second hand Morris car waspurchased by Mrs. Williams on the basis that it was a 1948 model as mentioned in registrationcertificate of the car. The following year, her son used the car as a trade in for a brand newHillman Minx which he was purchasing from Oscar Chess. The son mentioned the Morris a 1948model and on that Oscar Chess offered £290 off on the purchase price of Hillman Minx. TheWilliams could not have had made this purchase without the discount. After 8 months, OscarChess found out that the car was a 1939 model and worth much less than thought. Oscar Chessfiled for breach of contract arguing that the date of the vehicle was a fundamental term ofcontract. Hence, giving the grounds to revoke the contract and claim damages. Held: The statement regarding the age of the car was not a term but a mere representation. OscarChess Ltd. As a car dealer has the greater knowledge and expertise and was in a better positionto know the age of the manufacturing date than the Williams (defendant) (Idowu and et.al, 2013).By applying the above case in the case of Monica and Chandler, the following facts canbe determined by applying the Oscar Chess Ltd v Williams, Monica bought the car by relying onthe expertise of Chandler. In this case, after meeting Chandler, the first thing Monica mentionedis that she has very little knowledge about the car and she wanted a reliable car that can get her towork and back each day. Chandler suggested and convinced her to buy 2006 Ford Mondeo. Byrelying on Chandler's expertise Monica got convinced and bought the car. It can be held that, Chandler being the car salesman had more knowledge about the 2006Ford Mondeo as compared to Monica but he provided false representation to Monica. Shebought the car on relying the false representation of Chandler. Hence, she has the right to cancelthe contract, claim the damages and sue the Cars R Us.Question 2: What are the grounds in which dismissal from employment would be unfair at law, whichMonica should explain to the boards of directors.In the given case, Young and Ernst has scheduled a meeting with Monica to discuss twounrelated issues. Other than this, the board is unhappy with the performance of an employee.When an employer terminates the employment contract of his employee and the employer does

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