LST2BS. Introduction to Business Law and Ethics

Added on - 31 Oct 2019

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LST2BS Introduction to BusinessLaw and EthicsCommon Law AssignmentStudent id[Pick the date]
Question 1IssueThe issue is to determine whether the nature of OFFICE PRO X9 chair being an amazing chairand/or best on the market is considered to be a term of the contract enacted between Peter andForever Furniture.RuleA term is considered to be an imperative aspect which is a statement offered by one party toanother party in the pre-contractual (negotiation) phase. A statement is classified as term whenthe decision of the party to enter into the contract depends on accuracy of statement. The leadingcase isHeilbut, Symons & Co v Buckleton1.The enactment of the contract relies on thecorrectness of the underlying terms and therefore, it is essential that the party does not makefraudulent representation to the other party. It is because if the term is breached, then theinnocent party has legal right to sue and recover the damages. Hence, it would be pivotal to findthat which of the statement are considered as a term for the contract. The relevant factorsassociated with the aspect are listed below:TimingAs per the verdict announced inRoutledge v McKay2case, if the time lag between offering thestatement and acceptance of the party to enter into contract is minimal, then the statement wouldbe term of the contract .1Heilbut, Symons & Co v Buckleton[1913] AC 302Routledge v Mckay[1954] 1 WLR 6151
Importance of statementWhen the statement represents a significantly pivotal element for the party to enter into contract,then the statement is recognized as term of contract. The leading case in this regards isCounchman v Hill3case.Form of statement (Parole evidence rule)According to the judgment given inBirch v Paramount Estates4case, the statements which arelisted in written contract would be considered as term of contract while the oral ones would berepresentations.Expertise of partyThe honorable court would check whether the representing party is having the requisiteknowledge to test the precision of the offered statement or not. The verdict ofOscar Chess vWilliams5case is the testimony of this.ApplicationIt is apparent from the given case facts that Peter who is having serious back problem has clearlytold Samantha (representative of Forever Furniture) about this problem. He also stated that herequires an office chair that would support his back and would be comfortable to work wholeday. Samantha has stated that the OFFICE PROX9 is best suitable chair for him as per hisrequirement. It would be fair to conclude that statement stated by Samantha would be term ofthe contract as highlighted below:3Counchman v Hill[1947] 1 All ER 1034Birch v Paramount Estates(1956) 1675Oscar Chess v Williams[1957] 1 All ER 3252