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Issues Faced by EviroPro Pty Ltd

   

Added on  2020-04-01

7 Pages1564 Words152 Views
PAGE \*Running head: Contract Law1Contract LawName of the StudentName of the UniversityAuthor Note:Contents

PAGE \*Title2Solution 13Issue: EviroPro Pty Ltd.3Rule of Law3Application of Law4Conclusion5Solution 25Issue: Clean Aqua Pty Ltd5Rule of Law5Application of Law6Conclusion7References8

PAGE \*Title3Solution 1Issue: EviroPro Pty Ltd.Whether a case can be brought against Enviro Pty. Ltd. by Charlie under the general rules ofcontract and the Sale of Goods Act (Victoria) (“SA”)?Rule of LawThe statements which are made at the time of negotiation amount either to arepresentation or to a contractual term. It is essential to understand in the given situationwhether the statement made by the salesperson was a representation as that will determine theremedy that would be appropriate. If it is a statement that amounts to a term of contract that hasnot been fulfilled the party may sue for breach of the contract. If however, the statement made isa mere representation that is no true then an action for misrepresentation can be brought. If the knowledge of the representor is greater than the knowledge of the representee thenin that case the statement made would form a contractual term. As in the case of Dick BentleyProductions v Harold Smith Motors wherein the statement with respect to the condition of thecar was made by the defendant who was a car trader specializing in the prestige market (DickBentley Productions v Harold Smith Motors, 1965). This statement turned out to be not true, theissue that arose was whether this statement formed a term in the contract or was a representation,if then it would be an innocent misrepresentation then due to time lapse there would be norescinding of right to claim. The court however opined that this statement was a term in thecontract since the car dealer had higher expertise and reliance was placed by Mr. Smith on it.Further, in the situation where the representee indicates to the representor the statement’simportance it would be a term. As in the case of Bannerman v White wherein the court opinedthat the statement made by the salesperson that the hops had not be treated with sulphur was nota representation but a term of contract as it had been communicated by the claimant the term’s

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