Law Contract for Sale of Goods (Essay Sample)

DISCUSS HOW BETTINA CAN RELY ON BOTH LAW OF CONTRACT AND SALE OF GOODS TO SUE JIM.
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TABLE OF CONTENTS
TABLE OF CONTENTS…………………………………………………………………….……2
1. INTRODUCTION…………………………………………………………….………………...3
1.1 DEFINITION OF TERMS…………………………………………….………...………….…3
2 .0 DISCUSSION……………………………………………………………………...…………3
2.1 REASONS AS TO WHY THE CONTRACT FOR SALE OF GOODS BETWEEN BETTINA AND JIM IS BINDING…………………………………………………………………...…….…3
3.0 DISCUSSION………………………………………………………………………...……….4
3.1 TERMS IMPLIED IN THE SALE OF THE CAR AND HOW THESE TERMS WERE BREACHED………………………………………………………………………….……..…….5
3.2 EXEMPTION OR EXCLUSION CLAUSE AND ITS IMPLICATION IN THE CONTRACT OF BETTINA AND JIM …………………………………….……………...……6
3.3 HOW WOULD YOUR ANSWER DIFFER IF BETTINA HAD BOUGHT THE CAR FROM JIM PURELY FOR PERSONAL USE……………………………………………….7
4.0 SUMMARY……………………..…………………………………………………………….7
4.1 CONCLUSION………………………………………………………………………………..7
5.0 REFERENCES………………………………………………………………………………...8
DISCUSS HOW BETTINA CAN RELY ON BOTH LAW OF CONTRACT AND SALE OF GOODS TO SUE JIM.
Introduction
A contract for the sale of Goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called a price. In an agreement to sell, the property passes either on the fulfillment of a particular condition or on the expiration of the specified duration (Dowd, 2004).
Implied terms of a contract are terms which though not agreed to by the parties, are an integral part of the contract. The terms may be implied by statutes or by a court of law and may have to be added to a contract so that it represents the agreement reached by the parties and the law which applies to that type of the contract (Stone, 2007).
Exemption clause is a provision in a contract under which one party (usually the one which drafted the agreement) is protected from being sued by the other party for damages, loss, negligence, none performance. Scrap value, in a contract for the sale of goods, scrap value is defined as the value of an asset after it has come to an end of its useful life also known as salvage value (Demaine & Hensler, 2004).
REASONS AS TO WHY THE CONTRACT FOR SALE OF GOODS BETWEEN BETTINA AND JIM IS BINDING.
Price is a consideration that passes from the buyer to the seller to support the contract for the sale of goods. The consideration must be monetary which distinguishes a contract from the sale of goods from related transactions. Bettina and Jim had entered into a contract for the sale of goods and in this case, the good is a taxi. The reasons as to why the contract for the sale of goods between Bettina and Jim is binding to both parties include the following points. The contract is binding because Bettina paid £5,000 and therefore the property in good passed from Jim to Bettina, under section 18 of the Act, in a sale of unascertained goods, the property passes to the buyer when the goods are ascertained and therefore the contract is for the sale of goods. In Lee v. Griffin where a doctor agreed to make two sets of false teeth for a client at a price exceeding £10.The contract was held to be one of the sales of goods. Capacity, a contract must be characterized by capacity. This is the legal ability of a party to enter into a contractual relationship. For an agreement to be enforceable as a contract, the parties must have the requisite capacity. The contract for the sale of goods between Bettina and Jim is enforceable because both parties satisfy the contractual capacity because they are adults, persons of sound mind and they are not corporations.[Lee v. Griffin[1861]1B&S272]
TERMS IMPLIED IN THE SALE OF THE CAR AND HOW THESE TERMS WERE BREACHED.
The sale of goods Act implies both conditions and warranties in Sale of contracts. The terms are though not agreed to by the parties, are an integral part of the contract.
Fitness for purpose. Under section 16(a) of the Act. “Where the buyer expressly or by implication makes the seller the particular for which the goods are required so as to rely on the seller’s skills and judgment, there is an implied condition that the goods shall be reasonably fit for that purpose.” Bettina bought the car from Jim’s garage at a cost of £5,000 and within a week it had become clear that the car was very defective. Jim knew very well the business that Bettina was doing, Bettina needed a good taxi car to facilitate her to carry out her business. Jim failed to honor implied terms in the contract of Goods Act when he was selling the car to Bettina. Jim is supposed to repair the car to enable Bettina to use the car, but we Jim is refusing to pay Bettina or repair her car, so let us see what the law of sale of goods Act implies. Daniel v. White motor company, 1965, the plaintiff who is Daniel entered into a conditional sales contract with Southern Truck Sales for the purchase of a truck manufactured by the defendant, White Motor Company. The Plaintiff purchased the truck for use in his business of heavy-duty hauling. Upon taking possession of the truck, plaintiff found that it bounced violently, an action known as “galloping.” On July 22, 1960, when slowing down for a turn, the plaintiff found that brakes did not work. The truck overturned, and the plaintiff found who was not personally injured, had the damage repaired for $5,466 in September 1960, after paying $11,659 of the purchase price of $22,041. The Plaintiff served notice that he would make no more payments. Southern thereafter repossessed the truck and resold it for $13,000.The Plaintiff brought this action against Southern and White seeking damages, related to the accident, for the repair of the truck. The court found out that White breached its warranty and, therefore it was liable for damages caused and was also to repair the truck. Other cases where the defendant breached implied terms of fitness of purpose include; Burger King Corp.v. Rudzewicz, 1985. Allis-Charmlers Corp v. Lueck, 1988.
Merchantable quality. Under section 16(b) of the Act, where the seller sells goods in the course of business, there is an implied term that the goods supplied under the contract are of satisfactory quality. Jim has been dealing with the business of selling cars and maintains and repair of the same cars. Jim is under obligation to ensure that the taxi is free from minor defects, and it is safe and durable. After one week, Bettina realizes that the car has defects.
In Denny v. Ford Motor company, 1995 Nancy Denny and her husband (plaintiff) filed suit in federal district court against Ford Motor Company (Ford) (defendant) after Nancy was severely injured when the Ford Bronco II she was driving rolled over in response to her slamming the brakes in order to avoid hitting a deer. Nancy asserted claims of negligence, strict product liability, and breach of implied warranty of merchantability. Ford countered that the Bronco II was never designed to serve as an on the road vehicle, but rather was made for off-road use over rugged terrain. With respect to the breach of implied warranty claim, the court told the jury that if the Bronco II was not reasonably fit to be used for its intended purpose, the warranty had bee...