Commercial Law Assignment: Contractual Breaches and Remedies

This assignment solution addresses a commercial law case involving a contract for the sale of goods. The central issue revolves around whether a buyer, Billy, is entitled to cancel a contract with Tamarillo Gallery Limited due to the delivery of faulty goods. The solution analyzes the relevant provisions of the Contract and Commercial Law Act 2017, particularly sections 132 and 138, to determine if a breach of contract occurred. It examines whether the goods supplied met the buyer's specified requirements and purpose, and whether the seller fulfilled their obligations. The assignment then explores whether Billy can claim damages, referencing section 49 and 43 of the act. Finally, it outlines the procedures Billy can follow to enforce a judgment against Tamarillo Gallery Limited, including debt recovery and court proceedings.

Commercial Law
Running Head: COMMERCIAL LAW 0
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Student’s Name

Commercial law 1
Contents
Contents
Contents...........................................................................................................................................1
Question 1........................................................................................................................................2
Issue.............................................................................................................................................2
Rules.............................................................................................................................................2
Application...................................................................................................................................2
Conclusion...................................................................................................................................2
Question 2........................................................................................................................................3
Issue.............................................................................................................................................3
Rules.............................................................................................................................................3
Application...................................................................................................................................3
Conclusion...................................................................................................................................3
Question 3........................................................................................................................................3
Issue.............................................................................................................................................3
Rules.............................................................................................................................................4
Application...................................................................................................................................4
Conclusion...................................................................................................................................4
References........................................................................................................................................5

Commercial law 2
Question 1
Issue
The issue is to check that whether Billy is entitled to cancel the contract.
Rules
Under the Contract and Commercial Law Act 2017 (hereinafter referred as an act), some
kinds of conditions are there. Section 132 (1) of the act says that in the cases of the contract of
sale, if any of the party breaches the condition of a contract, then the order person has right to
consider the contract as repudiated (New Zealand Legislation, 2017). Section 138 is an important
section to discuss in this context. The section says that if the buyer of any goods informs the
seller about his/her, specific requirement or about the purpose for which the goods are being a
purchase, then it becomes the liability of seller to provide the goods accordingly. If the buyer
does not find the goods fit for the purpose stated to the seller then the situation will be treated as
breach if implied condition and will result in the remedies granted under section 132 (1) i.e.
cancelation of contract.
Application
In the given case, Billy has made a contract with Tamarillo Gallery Limited. Billy has
stated that he wants a clear glass. He also informed the manager of the Tamarillo Gallery
Limited that the place where he wants to apply the glass is very shiny and sunny. Here,
according to the provisions of section 138 of the act, it was the responsibility of the manager to
provide the goods according to the purpose of use to Billy. Nevertheless, he did not do so. The
glass, which Billy received, has many of the bubbles and was not fit for the purpose of his use.
However to provide a clean and bubble free glass was not an expressed condition of the contract
made between Billy and Tamarillo Gallery Limited but the same was an implied condition under
section 138, which has been broken by Tamarillo Gallery Limited.
Conclusion
Under Section 132 (1), Billy has right to consider the contract as repudiated. It means
Billy can cancel the contract made with Tamarillo Gallery Limited.

Commercial law 3
Question 2
Issue
Can Billy ask for the damages? If yes, then what rather damages that will be.
Rules
Section 49 of the act says that the right to receive damages of an innocent party cannot be
limited by the right of cancellation of a contract. It means if an innocent party is entitled to
cancel a contract, the same cam also as for the damages (Wipo.int, 2018). The section says that
the court can provide damages to parties to the case; however, the same will be affected by the
amount of relief granted by the court under section 43 of the act. In a summarized way this is to
state that damages can be provided to a party but the same will be impacted by the relief
provided under section 43. Section 43 says that whenever a contract gets cancel by the parties,
the court can provide the order for relief to ensure the proper justice (Howells, Twigg-Flesner,
Micklitz, & Lei, 2017).
Application
In the given case, Billy can treat the contract as repudiated. Now he can also apply for the
relief under section 43. If the court will think that providing relief to him is fair and justifiable
then he can get the justice. Further, Billy can also apply for the recovery of damages. However,
according to the facts, no damages seems to be there at the end of Billy.
Conclusion
Even after considering the contract repudiate, Billy can ask for the damages. However, he
has not occurred any damages and therefore he does not seem to be entitled to receive the same.
Question 3
Issue
How Billy can enforce the Judgment.

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Rules
To receive the money out of a judgment order, the creditor can serve a notice to the
judgment debtor. In such a situation, the creditor needs to wait for the next 10 working days
(Norling & Cherkashima, 2017). If he/she does not receive the amount within the specified
period, then the judgment creditor can apply to knock the door of the court. The court will
review the financial position of the judgment debtor and will held the debtor liable to pay the
subjective amount to the creditor. If the debtor does not corporate with the proceedings of the
court the court can issue the arrest order against of a judgment debtor.
Application
In the given case, Billy can cancel the contract. Further, for the damages (if any) and any
other judgment, he can ask the Tamarillo Gallery Limited to pay the same. Upon asking the same
it becomes the responsibility of Tamarillo Gallery Limited to pay the same. Further, under the
debt recovery proceedings, Belly can issue the official notice of 10 working days and at last, can
ask for the help of district court if Tamarillo Gallery Limited would not pay the amount
mentioned in judgment.
Conclusion
By taking the help of court, Belly can enforce his judgment against of Tamarillo Gallery
Limited

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References
Contract and Commercial Law Act 2017
Howells, G., Twigg-Flesner, C., Micklitz, H., & Lei, C. (2017) Comparative Consumer Sales
Law. Oxon: Routledge.
New Zealand Legislation. (2017). Contract and Commercial Law Act 2017. Retrieved From:
http://www.legislation.govt.nz/act/public/2017/0005/latest/whole.html
Norling, B., & Cherkashima, A.(2017). Enforcement of Judgments: Attachment Orders.
Retrieved From: https://www.norlinglaw.co.nz/single-post/2017/09/01/Enforcement-of-
Judgments-Attachment-Orders
Wipo.int. (2018) Contract And Commercial Law Act 2017. Retrieved From:
http://www.wipo.int/edocs/lexdocs/laws/en/nz/nz223en.pdf