Case Study: Contract Law & Misrepresentation in Chess Set Transaction

This case study examines a contract law dispute involving Alice and Preston concerning the sale of a chess set. Alice, a board game enthusiast, sold a chess set she believed to be historically significant to Preston, a collector. Preston later discovered the set's authenticity was questionable and sought a refund, alleging misrepresentation. The analysis identifies the relevant legal issues, particularly concerning misrepresentation under Australian contract law, referencing both statute and common law. It applies principles of offer, acceptance, consideration, and intention to create legal relations. Citing the case of Google Inc v. ACCC, the study concludes that Alice acted in good faith without intent to deceive, and thus Preston's claim for a refund is unlikely to succeed. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Contract Law

Table of Content
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Case Scenario....................................................................................................................................3
Issue raised........................................................................................................................................3
Source of law identification in Issue..................................................................................................4
Rule applied.......................................................................................................................................4
Application of law..............................................................................................................................5
CONCLUSION....................................................................................................................................6
REFERENCES....................................................................................................................................6

INTRODUCTION
Legal rules are an important part of society as it helps how to generate and manage
proper functions of business organisations and also creates a systematic approach in the
society. Commercial law is known as mercantile law through which all the relations of trade
can be managed between the parties. It helps out to conduct rights and relations and
engagement in different commerce and sales1. This report will cover caselaw with its
justification and statutes along with the applications which are being related to relevant
issues.
MAIN BODY
Case Scenario
This case scenario provides that Alice was a board game player who manages all die
various kinds of leaks for serious gamers Private Limited. She upholds all the game invent
trees and the relevant items related to games and certain products. As she went to one shop
their she got an ornate chess for which she was told through the seller of the product that it
was being earlier owned by Emperor Franz Joseph from Astro Hungarian Empire. She bought
that and also took a decision to put it on a sale in order to earn some money for which she
advertised about that antique piece of history to be sold in $25,000. Preston Porsche was also
known for collecting historical pieces has seen that advertisement where the chess set was
sold by Alice, He thought that the price that was being set by her was quite low and he can
even gain more money through that rare piece and instantly thought in order to arrange a
meeting and contact it the number and paid the amount to Alice. In order to flaunt his new
historical piece he hosted a grand party where he invited all the collectors of such pieces in
order to showcase such as set. While showing it to his friend one of among all he said that he
also has the same property with the authenticated documents as approved by hearing such
humiliating statements Prestone came in anger and just flung that chess set against the wall.
Later on, he called Alice and started blaming her about the copy and also asked her for the
money back.
Issue raised
 Whether Preston is allowed to take his money back from Alice in order to send a
duplicate copy which is not authentic chessboard.
1 Hesselink, Martijn W., "Democratic Contract Law" (2015) 11(2) European Review of Contract Law.

Source of law identification in Issue
British colonies in 1901 have majorly helped to develop Australian legal system. This
cover Parliamentary system through which all the advisory are being managed which
includes principle of innocent and jewellery. The two important types of law found in
Australia are statue law and common law where the statutory laws are mainly the
Parliamentary laws which considers to manage all the federal relations in Parliament through
all the state and territory2. This is enacted through formation and also circulating the bill
which is passed through two important houses other than Queensland. As when after passing
of bill approval is being adjourned it will transform in an act. An important assent is provided
by the governor general and once it is being gained then the act become the legislation which
might be about taxation, immigration, international trade, bankruptcy, defence, arbitration
related to interstate industrial acts and many more. The bill and the legislation also cover
topics like health, education and transport.
Other than this common law which is also known as caselaw is being made by the
judges help as it involves research work and other legal judgements through which deciding
of cases are being managed. It includes interpretations which are being given in the case
hearings through judges. The two major sources of law in common law jurisdiction in
Australia are legislation and case law. One of the Act which is being made with the help of
case law is contract law as it is generalise through the interpretation and all the rules that are
being applied for cases.
Rule applied
Australian contract law is English common law provides principle of freedom in
contract where all the parties have liberty to strike for any important things and have right to
bargain and to choose. Some of the essential elements in Australian contract law are like:
 Offer: This is generally an invitation to treat which is being provided by one party to
another while formation of contract as a for most procedure.
 Acceptance: This includes the admitting and willingness by one party for the
invitation of treat to the another.
 Consideration: The sum total or the amount or money which is being fixed between
the parties for completing the contract and the agreement made between them.
2 Cherednychenko, Olha, "Fundamental Rights And Contract Law" (2016) 2(4) European Review of Contract
Law.

 Intention for creating legal relation: It involves a legally binding agreements
between the party without any ill motive or breach in contract.
 Legal formalities: Parties will have to make the agreement and all the formalities to
be done in proper manner.
 Legal capacity: This involves that both the parties should be well aware about the
contract and be of sound mind in order to acknowledge the terms and agreement3.
As according to section 18 from Australian contract law, misrepresentation is mainly
The false information which is being provided by one party to another At the time when the
contract is being made as in such case when a person makes any kind of contract with the
help of misrepresentation and there is a loss being suffered to him that can cancel the contract
and the person can claim for damages. A misrepresentation can be innocent when trader
believes on all the statements that were being given by them is true and without any intention
to deceive the buyer.
Application of law
In case of Google Inc v. ACCC (2013), court held that Google was not engaged in any
kind of misleading and deceptive activities as all the advertisement and the representations
which were being published and displayed by them were for ordinary and reasonable users
without an intention to breach any person.4.
There was being analysed that no prior condition for being seen in the case of Alice
and Prestone. From this case scenario it is being seen that there was a true and valid contract
between Prestone and Alice. The elements which are being needed in the contract are being
fulfilled in the party, as in the case of Alice there was no knowledge being acknowledged
about the chess game as she also brought that in good faith by trusting the seller. She have no
intention to do any kind of fraud with Prestone by selling it on the antique piece name or for
historical name. Other than this Prestone was much skilled and knowledgeable about the
historical pieces and was aware about the chess set. In spite of having a little bit idea he still
bought that chess set In order to gain some more money. Alice sold at product without any ill
motive and in good faith by trusting the expertise and sellers’ skill.
In this case the misrepresentation cannot be applied on Prestone as Alice Has sold the
chess set Without any intention to deceive the buyer as she has given all the details which
3 "Specific Performance Of Contract: Contract Unenforcible" (2018) 16(3).
4 "Contract Of Sale: Written Contract: Alteration By Parol" (2018) 7(1).

were being known to her a d has no intention to decive him by any misrepresentation. She
shared all the details as in her true knowledge. So Preston cannot ask for his money back
from Alice5.
CONCLUSION
It is concluded from the above report that commercial law manages relation between
the individuals and party for an effective trade management. Australian legal system provides
common laws which are made by judges and a legally binding decisions and also with the
help of statutory law. Contract law considered some sensual elements without which no
agreement is being framed as valid. Furthermore, it is also analysed that sales of goods
implicates seller and buyer is to manage and transfer the goods with consideration of money.
REFERENCES
"Contract Of Sale: Written Contract: Alteration By Parol" (2018) 7(1)
"Specific Performance Of Contract: Contract Unenforcible" (2018) 16(3)
"Validity Of Contract Involving Breach Of Prior Contract" (2018) 27(3)
Cherednychenko, Olha, "Fundamental Rights And Contract Law" (2016) 2(4) European
Review of Contract Law
Hesselink, Martijn W., "Democratic Contract Law" (2015) 11(2) European Review of
Contract Law
5 "Validity Of Contract Involving Breach Of Prior Contract" (2018) 27(3).