Contract Law Case Study

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Contract Law Case Study Both the parties in the question have come to a problematic situation which is complicated to resolve. Friend's of the Forest (Friends), represented by Christabel, is involved in a commercial trade with Paper Supplies Pty Ltd (Paper) which is represented by Dee. A contract needs four essential elements to exist. In the situation, it is obvious that the four elements are satisfied. As the details are not fully provided, it is arguable as to when the contract was formed which will affect the legal rights and obligations of both parties. The first main issues to be discussed regarding the contract is whether is the exemption clause binding and enforceable, is the document contractual in nature, and was the exemption clause a term of the contract. It is arguable that the contract was formed only after the goods and delivery note had been delivered, and Christabel retained the goods without making any objection to the conditions on the note. But this did not mean that all conditions contained in the note were terms of the contract. It was not possible for Christabel to negotiate the terms in the document as it was delivered by the driver and is reasonable to assume that the driver is not an agent of Paper. Thus, Christabel could not negotiate the terms with Dee.[1] Nevertheless, Christabel did sign the document which will become binding as the fact that a person that has signed a document is strong evidence that the person has agreed to be bound by it. In the case of L'Estrange v F Graucob Ltd, Mrs L'Estrange signed a document cont... ... middle of paper ... ... the payment of the delivery. In reliance, Christabel acted on the faith of the assumption and manage to calm down the unsatisfied clients and she will suffer detriment if Dee reneges on the promise. In conclusion, Christabel's claims for damages and breach of warranty will most likely be approved based on facts and cases given above. Bibliography * Latimer, P. Australian Business Law, CCH Australia Ltd (latest edition), 2001 * Sweeney, B. & O'Reilly, J. Law in Commerce, Butterworths, 2001 http://images.lib.monash.edu.au/mgw1010/04105503.pdf --------------------------------------------------------------------- [1] Interfoto Picture Library Ltd v Stiletto Visual Programmes Ltd [1988] I AII ER 348 (Court of Appeal) [2] Sweeney and Oreily (2001) pp. 214-215 [3] Latimer (2001) p. 222

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