The Rights and Obligations of the Parties
Added on 2020-03-28
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Answer 1. The terms of the contract are used for deciding the rights and obligations of theparties to the contract. Apart from the contractual terms, there are certain representations that aremade by the parties in order to induce the other party to enter the contract. For instance, in caseof advertisements, there are several claims made regarding the advertised product by themanufacturers. Some of these claims can be mere sales puffs. The exaggerated sales talk isgenerally referred to as sales puff. When such a statement is made, the maker of this statementdoes not intend that other people will believe the statement literally. Therefore, terms like "bestin the world" or "nothing beats it" are not mentioned seriously so that they will be taken literallyby the others. Due to this reason, any reasonable person can easily identify a statement to bemere sales puff and would not rely on such a statement (Peel and Treitel, 2011). Due to thisreason, the law of contract provides that a sales puff, cannot be treated as a representation madeunder contract. Hence the law provides that a remedy is not available in case the other party findsthat the statement was untrue (Khoury and Yamouni, 2010). In this scenario, it has beenmentioned in the advertisement of OFFICE PRO X9 that it is the best. Therefore the statementsmade by Samantha when she cl aimed that at the price of the $350, the deal was the steal andmoreover. He also claimed that nothing beats OFFICE PRO X9 were mere sales puffs. Thesestatements are not serious enough so that any reasonable person would have relied on thesestatements mentoring to the contract. As a result, it can be stated that these statements were not aterm of the contract. That was created by Peter with Forever furniture for purchasing the chair.Answer 2. A statement has been made by Samantha that OFFICE PRO X9 provides significant
lower back support due to which people can comfortably work throughout the day and if thisstatement can be considered as a term of the contract that was concluded between Peter andForever Furniture. While taking a look at the terms of a particular contract, it is very important toconsider the statements that have been made by the parties before entering into the contract. Inthe same way, the post-contractual conduct may also result in producing rights and obligations ofthe parties, other than the contractual terms that have been decided by the parties. In this way, thelaw provides that usually a false pre-contractual statement will result in the liability of the partymaking such statements. In this regard, it needs to be mentioned that the contractual terms can bedescribed as express terms and implied terms (Atiyah, 2000). The express terms are the terms ofthe contract that have been decided by the parties when they are going to enter into the contract.According to the law, in case of a breach of a term of the contract, certain remedies may beavailable to the innocent party. For considering a particular statement as a contractual term, itshould be intended by the parties to the contract that the term will be of promissory nature. Forthis purpose, the intention of the party needs to be determined objectively. In some cases, thepre-contractual statement may also be treated as a representation (Graw, 2011). There are somecases where the parties did not intend that such representation should be of promissory nature.However, when it is discovered that the representation was false, the innocent party has beenprovided certain remedies by the common law and also by statute law. Hence the common lawprovides that when a contract has been created due to a false representation, the innocent party asthe right to rescind the contract (Beatson, Burrows and Cartwright, 2010). As a result in this casealso, Samantha told Peter that the chair provided very good support to the lower back. By relyingon this representation, Peter had decided to purchase the chair. Therefore now Peter can claimthe remedies that are available under the law, including rescinding the contract.
Answer 3: Under the contract law, the contractual terms have been classified as conditions andwarranties. However there is also a third category of innominate terms. This category wascreated by the court in Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] 2 QB 26.However, the main two categories are conditions and warranties. A condition can be described asa contractual term if the breach of such term results in giving a ride to the innocent party toterminate the contract. In such cases, the law provides that the innocent party may also claimdamages. On the other hand, when a contractual term falls in the category of warranty, the lawprovides that in case of a breach of such term, the other party is not provided the right toterminate the contract. Therefore in such cases, it is available to the party to claim damages but itcannot terminate the contract (Sweeney, O’Reilly and Coleman, 2013). On the grounds, it can besaid that the major difference that exists between a condition and the warranty is that a conditionis a basic term of the contract (Poussard v Spiers, 1875). Such term goes to the very heart of thecontract. But when a statement or assurance has been made concerning a factual issue, usually itwill be treated as a warranty (Bettini v Gye, 1875). There is also a third category of innominateterms. In such a case, the remedy that may be available to the innocent party depends on theeffect of the breach. Therefore, when a significant effect is present as a result of the breach, theother party is given the right to terminate the contract. If this is not the case, then the court onlyprovides the right to claim damages and such party cannot terminate the contract. The terms of the contract also fall under the category of express terms and implied terms. Underthe contract law, express terms can be described as the terms that are particularly stated by theparties when they are going to enter into the contract. The express terms can be oral or in writing.The implied terms are the terms that are implied in the contract even if the parties have notmentioned these terms. Still these terms are treated as a part of the contract (Baxt, Fletcher and
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