M2: Analyse how consumers are protected in the event of breach of contract for the supply and sale of goods or services. For M2, I will analyse how consumers are protected in breach of contract of law for supply and sales of good or service by legislation like Sales of Good act 1979 which imposes responsibility to the seller to make sure products are good quality. Also, I will be explaining the limitation of this legislation in protecting customers from defected products. Example of breach of contract and how statue help protect consumers for supply for the supply and sale of goods and services. Causes of breach of contract Advantages Disadvantages Default goods Under section 14 of sales of good act 1979 all goods send to customers must …show more content…
If the product was not the same as the sample product, the contract is breach. Therefore, they buyer is able to reject contract and ask for compensation for breach of contract. Seller have the responsibility to make sure that they product they sell or customers is free from defects for it to be reasonable examination. The injured party right to claim damage for breach of contract is not forever. The Limitation Act 1980 imposes that consumers only have 6 years to be granted remedies for contracts under deeds (for example, sale of land). If they exceed the limit to claim for damage, customers may not be granted any compensation for the damage. However, courts will have to examine case, for example if customers experience fraud, the time limit to claim remedies may extend. TASK 4: REMEDY FOR BREACH OF CONTRACT P7: Describe the remedies available for breach of contract. Remedy – compensation or solution for the victim for the breach of contract What is breach? Breach is where one party fails to carry the term in the contract. Therefore, the injured party is able to claim damages for loss due to breach of contract. DIFFERENT REMEDIES FOR A BREACH OF CONTRACT: 1.) DAMAGES– Any breach of contract allows the injured party to claim damages. The main purpose is to help injured party in a position as if the contract was not breach and that contract was perform. There are two types of damages: Liquidated damages: Damages agreed during the negotiation stage. o For example: Euro London V Claessen (
Takem’s is an appliance store in the state of Virginia serving the residents of the Appalachian regions of Virginia, Kentucky, Tennessee, and West Virginia. The business model which is currently being conducted in the appliance store has been called into question by one of the customers who has recently purchased a computer on credit. The owner of the store, Tommy, is now contemplating what should be done to handle this situation and protect his interest in the future. In this discourse, the author attempts to reveal to the reader the alleged infractions that Takem’s may be liable for regarding the situation with his customer, Ms. Sally
Suppose that the contract had no liquidated damages provision (or the court refused to enforce it) and X Entertainment breached the contract. The breach caused the release of the film to be delayed until the fall. Could Bruno seek consequential (special) damages for lost profits from the summer movie market in that situation? Explain. P.223-224
If a breach of contract is both material and opportunistic, the injured promisee has a claim in restitution to the profit realized by the defaulting promisor as a result of the breach. Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.
The Australian Consumer Law (ACL) was established to protect consumers in any legal trading activities in Australia. A set of guarantees has also been introduced for those consumers who are acquiring goods and services from Australian suppliers, importers or manufacturers. The guarantees are intended to ensure that consumers will receive the goods or services they have paid for. If they have problems with the products and services they bought, they are entitled for remedies, such as repair, replacement, and refund.
Over the past years, Lancer Gallery's business has been growing reasonably counterfeit revenue is a small amount. Despite the expected attracting turnover of that contract, it will be risky for Lancer. The company total sales are about $ 35,000,000. The new contract although might increase that amount more than $ 4,000,000 in addition to sales, but it's going to harm the company's distinctive competence. Lancer's reputation will land beside their customers' relationship will be also affected and change (since they will not be the only one in this business anymore), the initial sales of the original $ 35,000,000 will be cut down. Indeed, this is not a wise decision to be accepted under any circumstances. We are recommending Lancer Gallery that does NOT accept this
As the law currently stands, dishonest private sellers are essentially rewarded for their conduct, while consumers are negatively impacted, and this does not reflect the intended purpose of the legislation . The legislation should therefore be reworded to serve the intended purpose of the act, which would extend consumer protection guarantees to consumers of private one-off
John, a homeowner of thirteen years recently sued a roofing contractor for false advertising stating that he could arrange financing for roofing repair jobs, the roofing contractor was found guilty of illusory publicizing a service that he was unable to fulfill to John, the consumer. Deceptive advertising, deceptive pricing, and punitive damages are a few actions that can be held against the business based on Consumer Protection. Consumer Protection is protecting the consumer from defective goods and pitiable quality of service from untrustworthy merchants. Consumers have persistently demanded monetary value in the usage of quality goods and better services over time. There are many consumer protection rights to be discussed. This is implemented by the consumer rights offered and the protection granted by federal laws to consumers and evidenced by the lawsuits filed by different consumers.
The Lex mercatoria was an international law of commerce governing the trades and disputes based on the customs and practices of merchants. By the nineteen century, the law of merchant was fully incorporated in the Common law, but the development of commercial law led to a conflicting mass of case law . Following the commercial community recommendations, European countries started to rationalized the commercial law by building codes . English law didn’t follow this path, but instead adopted a series of Act of Parliament focusing on specific area, such as Bills of Exchange Act 1882 and the Sale of Good Act 1893 . Finally, the rise of the consumerism forced the Parliament to recognize the separateness of certain commercial transaction and to adopted an interventionist approach that aimed to create a body of laws protecting consumers, such as the Unfair Contract Terms ACT 1977 and Consumer Protection Act 1987
(1) A party to a contract ´deals as consumer´ in relation to another party if -
In taking the role of the Consumer, I would like to know that when I
This case mentioned below is a fine example of understanding the Law of Contract in a better manner. (Gerald, 2014).
It only summarizes the concept that a buyer must test, observe, judge, and analyse a product considered for purchase. However in modern time’s trend of laws protecting consumers has minimized the importance of this rule. Nevertheless buyer is still required to inspect goods before purchasing. Moreover increasingly responsibilities have also been placed upon the seller. There are certain exceptions to this rule of caveat
Breach of a contract – failure or refuse to perform than the contract has been breach than the other party has the right to terminate the contract.
Damages is the common remedy in cases of breach of contract. The party who is not able to perform the contract is broadly liable for damages. However, there is an exception to this principle, ie. common law doctrine of frustration. A contract is said to be discharged when performance becomes impossible, illegal or radically different from what was formerly envisaged. In other words, a contract is frustrated, when, after the contract is made, and without the default of either party, a change of circumstances occurs which renders the contract legally or physically impossible of performance.
Consumer care: The customer is the most important in all declarations of good business and it should therefore assist consumer protection movements.