Sale of Goods Act and Contract Law Assignment
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Added on 2020-04-01
Sale of Goods Act and Contract Law Assignment
Added on 2020-04-01
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Issue: after analyzing the facts that are present in this question, it has to be seen if Charlie canbring a claim against EnviroPro Pty Ltd. Apart from the general rules under the contract law, italso needs to be seen if Charlie has a case under the Sale of Goods Act (Vic) against EnviroProPty Ltd. . The reason that this issue is that EnviroPro Pty Ltd. has placed a large sign at the gatein which it has been mentioned that the company cannot be held liable for any damages exceptfor the replacement of goods.Rule: it is worth mentioning that the provisions of the Sale of Goods Act (Vic) and applicableonly in case of the contracts related to the sale of goods. According to this Act, there is adifference between the consumer contract and non-consumer contracts. It has been provided bythis Act regarding consumer contracts that the terms that can be implied under the earlier TradePractices Act can also be applied in such contracts. The provisions of this Act are applicable onlyto the contracts formed in the State of Victoria. Hence, this legislation provides that any contractrelated with the sale of goods for less than $20,000 or when such contract deals with the goodsthat are generally sold for domestic use or when these goods are not going to be resold or used inthe manufacture of other goods. The Act provides that there are certain terms that can be impliedin case of a consumer contract. Among these germs, there is a condition which requires that thegoods with my description, in case the sale is by description. Search terms can be considered as apart of the contract (David Jones v. Willis, 1934). In case of a contract related with sale of goodswhen the consumer has expressly or impliedly informed the seller of the purpose behind thepurchase of goods. These terms can also be implied in case of a contract where the circumstancessuggests that the seller was aware of or should have known regarding the fact that in order to
purchase the product, the buyer is relying on skill of the seller. In such cases, an impliedcondition has been mentioned in section 20 of the Act which provides that the goods sold to theconsumer should be fit for purpose. In case the circumstances mentioned above are present. Inthis context, it needs to be mentioned that the requirements related with the fitness for purposeoverlaps the merchantable quality implied condition (Trade Practices Commission v RadioWorld Pty Ltd., 1989). The courts are also held that in such cases, the buyer should inform theseller regarding the purpose of purchasing the goods (Griffiths v Peter Conway).Application: it has to be considered in this case, if Charlie can bring a claim against Enviro PtyLtd. The company has placed a large sign which suits the liability of the company for anydamages suffered by the consumers accept the replacement of goods. In the present case, at thetime of purchasing Clean Aqua, Charlie had asked the salesperson of Enviro Pty Ltd. if CleanAqua was a fit product to produce drinking water. The salesperson gives an assurance that youare that the network will be a fit product for this purpose. Hence, Charlie purchases Clean Aquaand starts consuming the water produced by it. Very shortly, Charlie falls sick. He could not goto work for nearly 5 weeks. Moreover, he also develops irritable bowel syndrome. Now hisquality of life will be adversely affected. Under the circumstances, it is clear that Enviro Pty Ltdhas been a breach of the implied condition. The company cannot be allowed to exclude itsliability by mentioning an exclusion clause.Conclusion: in this case, Charlie can successfully sue Enviro Pty Ltd for the breach of contractand also under sale of goods Act (Vic) for breaching the implied conditions.
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