commercial law problem question help :( watch
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Last edited by Kry5taaal; 07-03-2016 at 21:12. Reason: Wrong
- 17-02-2016 20:00
- 18-02-2016 15:44
I'm not a Law student but I fancied a challenge so forgive me for any mistakes.
It appears the parties have entered in to a contract by their conduct...
'contract of sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of the parties' Section 4, Sales of Good Act 1979
...but seeking a written agreement may be appropriate (if one exists) for proof if this went to court. As explained in the text, the purchased goods were breaking within minutes of being used and if this true, as would seem the case with consumers returning their products, this would imply they are not of the quality set forth in Section 14, SS 2B...
'For the purposes of this Act, the quality of goods includes their state and condition and the following (among others) are in appropriate cases aspects of the quality of goods—(a)fitness for all the purposes for which goods of the kind in question are commonly supplied,(b)appearance and finish,(c)freedom from minor defects,(d)safety, and(e)durability.'
So that contract has been breached, the remedy for which is found in Section 53...
'(1)Where there is a breach of warranty by the seller' 'the buyer is not by reason only of such breach of warranty entitled to reject the goods; but he may—(a)set up against the seller the breach of warranty in diminution or extinction of the price, or(b)maintain an action against the seller for damages for the breach of warranty.'
In this case the diminution of the price is succinctly explained in Sub-Section 3 as the 'difference between the value of the goods at the time of delivery to the buyer and the value they would have had if they had fulfilled the warranty', which means that BCP are liable to recover the compensation for all the losses they incurred.
Hope that helps.