Commercial Law Case Study: Contractual Issues and Sales of Goods Act

This case study delves into a commercial law scenario involving Alice, a board game dealer, and Preston, a collector, focusing on issues of contract law and the sale of goods. The central issue revolves around whether Preston can reclaim his money from Alice after discovering the chess set he purchased was not authentic. The analysis identifies the relevant sources of law within the Australian legal system, primarily statutory and case law, with a focus on contract law principles derived from English common law. Justification of relevant laws, including the essential elements of a valid contract (offer, acceptance, consideration, intention to create legal relation, legal formalities, and legal capacity) and the Contract of Sales of Goods Act, are provided. The application of these laws to the case suggests a valid contract existed, and due to Alice's good faith and Preston's awareness, Preston may not be entitled to a refund. The report concludes by emphasizing the importance of commercial law in business practices and the role of Australian legal system components in resolving disputes.

commercial law

Table of content
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Case Scenario....................................................................................................................................3
Issue Raised.......................................................................................................................................3
Identification of the source of the law on each issue.........................................................................3
Justification of the relevant law.........................................................................................................4
Application of the relevant law..........................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES....................................................................................................................................6

INTRODUCTION
For all the individuals it is important to manage the legal rules and regulations within
the general circulation of time. It can be seen that for smooth functioning of daily lifestyle
and also for managing the business and organisation law considered to be an important part
of the society. Commercial law which is also being named as mercantile law considers all the
trade relations between the parties and individuals. This is the body of law which provides the
relation, rights and general conduct in the business practises and in also for engagement of
person in merchandise, commerce and other sales. This is the branch of civil law which
provides private and public law. Legal sources and the body of law provides an authentic
method through which all the formal practises information of business can be considerably
managed (Goldberger, 2019). In this report There will be a detail about the case law, statue
and the justification related to the case law with application of relevant law with issue.
MAIN BODY
Case Scenario
In this case scenario Alice a board game player Used to manage different leagues of
serious gamers Private Limited. She Carries different board games inventories and items of
board games and products. She bought an ornate chess set as she was told by seller that it was
owned by Emperor Franz Joseph of Astro Hungarian Empire. She decided to take the
transport on sale and to earn money by advertising about it in $25,000 for the piece of
history. Preston Posh collector of historical pieces when seen about the chess set of allies
thought that he could even earn more for this rare piece and immediately thought to arrange a
meeting with allies with that advertisement number and paid her the amount. Later on, he
hosted a party in which he invited all the historical pieces collector to showcase his chess set.
When he showed it to his friend one of his friends said that he too has that property and also
the authenticated documents to prove that you already have the same by seeing such
humiliation Preston Was in anger and pick the chess set and flung it against the wall. He then
calls Alice and blamed her and demanded the money back.
Issue Raised
 Whether Preston can take the money back from Alice for not selling the real and
authentic chess board which was claimed by her.
Identification of the source of the law on each issue
Australian legal system was being developed with the help of British colonies in 1901
(Rajapakse and Senarath, 2019). It includes all the Parliamentary system with the adversial

system that considers jury and the principles of innocent. The two types of law in Australia
are statutory law also known as statue law and case law or common law. The statutory laws
are made with the help of Parliament as this considers to be the federal parliament or can also
be with the Parliament of state or territory. It is being in acted with the formation and starting
with the help of bills which are being passed by two houses except in Queens land. When the
bill gets the approval, it will become an Act. When the assent is being given by the Governor
General it will become a legislation the laws included in it are like international trade,
immigration, taxation, defence, bankruptcy, interstate industrial arbitration and many more. It
used to cover issues like education, health and transport.
The other type of law is common law or case law which is being developed with the
help of judges in quotes as it involves the research and the legal judgements that are being
raised by the judges while deciding any case. It is mainly a proper interpretation given by the
judges for a case. In common law jurisdiction in Australia the two important sources of law
are case law and legislation case law considered to be the interpretation of law as in Australia
the court system is higher kill and all the judges of lower division will have to follow the
divisions of higher court which is known as doctrine of precedent and it is important for
common law system. Contract law comes under case law, as it is developed with the
interpretation and all the general rules applied in cases (Britton and et. al., 2021).
Justification of the relevant law
Contract law in Australia is based on English common law as this considered the
basic principle of freedom of contract in which the parties will have the liberty to strike for
whatever their bargaining to choose. It covers a set of promise which is being made between
the parties that make it legally binding to one another. There are some Essential elements that
are being required in Australian contract law through which binding element will be framed
they are like as follows:
 Offer: It is the first and foremost process in which one of the parties will have to make
an invitation of treat to another party for making a contract to be framed.
 Acceptance: It is the willingness or accepting the terms by another party for the
invitation of treat that is being made by another person.
 Consideration: This involves the sum or the amount which is being decided between
the parties in order to complete the contract or the agreement which is being made
between them (Khanderia, and Peari,2020).

 Intention to create legal relation: This complies that the parties entering in the contract
will have to be legally binding without any ill motive towards the contract.
 Legal formalities compliance: Both the parties will have to fulfil all the formalities
which are being considered with the agreement made between them.
 Legal capacity: Both the parties will have to be of sound mind and are able to
acknowledge in order to frame the contract between them which means they have to
be legally capable to come under a contract.
Contract of Sales of Goods Act provides an identification for the contract which involves
sales and it considers that where there is it seller and buyer and there considers to have an
objective to transfer the goods ownership from the seller to the buyer on some sort of
consideration or money. In all such cases the buyers used to rely on all the judgement and
skills of seller while getting in the contract or taking any product or item. It is the duty of
seller to provide authenticated goods to the buyer with proper information regarding the
product without any breach. The contract of sale regarding to the goods are being adopted
with the description of the identified items without any misleading (Smits, 2017).
As in the case David Jones v. Willis Seller promised that all the goods that were being
sold were reasonably fit for purpose and there for the conditions which will not be operated
unless:
 Buyers expressly tells the seller regarding the purpose.
 Buyer relies on the skills and judgement of seller.
 The goods which are being given on the course of seller is for business to sell.
As being seen there were no such conditions seen in Alice and Preston’s case.
Application of the relevant law
In this case scenario there was a valid contract between Alice and Preston as all the
essential elements are being fulfilled between both of them and there has been framed a valid
contract. In condition of Alice There can be seen that she has no knowledge about the chess
game and she ate brought that set in good faith from the seller by trusting him. There was no
ill motive of her regarding selling the piece on some historical name.
On the other hand Preston was quite aware about the historical pieces and the chess set and
he willingly buyer for managing and gaining more money. Alice has taken and sold that
product in good faith as she has no issue on the seller skill and she also trusted the expertise.

Preston was aware while purchasing the property that it can maybe not authentic.
Here the rule of Caveat Emptor will not be applied in which the buyer will have to be aware
before purchasing any property with defects(Black, 2018). Preston was well aware so he is
not liable to ask or demand for the money back from Alice. As he already had complete
knowledge about it and still was willingly ready to buy it.
CONCLUSION
From this above report it is concluded that commercial law is mainly a law deals with
business practises and relations between the parties and individuals. Australian legal system
comprised of statutory law where laws are being enacted by Parliament and the common law
where case laws are being made with the help of judges. It implies judicial precedents where
all the laws and the judgement given by the judges are being considered. Contract law
provides an essential element that are to be fulfilled in order to make a proper valid contract.
Furthermore, it is also concluded that contract of sales of goods provides that the seller and
buyers are to be considered in order to manage the objective is to transfer the goods regarding
the consideration of money
REFERENCES
Goldberger, J., 2019. Implied contracts and implied terms-part 2 of 3. Commercial Law
Quarterly: The Journal of the Commercial Law Association of Australia, 33(3),
pp.12-32.
Rajapakse, P. and Senarath, S., 2019. Structuring and Issuance in Residential Mortgage
Securitisation. In Commercial Law Aspects of Residential Mortgage Securitisation
in Australia (pp. 43-67). Palgrave Macmillan, Cham.
Britton, P., and et. al., 2021. Residential Construction Law. Bloomsbury Publishing.
Khanderia, S. and Peari, S., 2020. Party autonomy in the choice of law under Indian and
Australian private international law: some reciprocal lessons. Commonwealth Law
Bulletin, 46(4), pp.711-740.
Smits, J.M. ed., 2017. Contract law: a comparative introduction. Edward Elgar Publishing.
Black, C., 2018. Taxation of Intellectual Property Under Domestic Law and Tax Treaties:
Australia. Taxation of Intellectual Property under Domestic Law, EU Law and Tax
Treaties", IBFD: Amsterdam.