Analyse the range of remedies available to a business in case of breach of contract
Case study of Motorsmart
Mr Brown asked Motorsmart Ltd to revamp his car and a contract, Mr Brown delivered his car to the company and Motorsmart has started work on it and Motorsmart has spent 8 hours on the car so far on completing the engine service and fitting the full body kit. They paid for the exhaust and the metallic paint from a supplier and are ready to finish the work, the customer phoned the company and told them that he has changed his mind and isn’t going to pay for the job and the customer wants to collect his car the following week.
Both the business and customer has agreed to the contract which clearly started the prices of the goods which
…show more content…
Sections 41-43 of the Supply of Goods and Supply Act 1982 would protect the business on this. As the Motorsmart business still has possession of the customer’s car and the customer hasn’t paid for the service and wants to collect his car. The business has started work on it the car and the business would be able to have keep the car until the customer pays for it. The customer would not be able to take the car away as it’s under the possession of the business and the business would have the right to do this as the customer hasn’t paid for the service. The business should not let the customer take the car but the business should try to claim damages for the money which the business has …show more content…
The business would write facts about the claim and for the reason the business wants to claim which would be because of the customer not paying money for the service. The business would state a value of the claim that they want to claim from the customer on the form and the figure that’s being claimed would have to be reasonable for the damages caused. After filling in this form, a letter would be posted to the customer and they would have around 14 days to respond to the letter. The customer would have three options being the customer would be able to defend his self, the customer could do nothing or the customer admit it and pay for the damages. If the customer wants to defend himself the court would set a date which then the case would be
Walker, Takem’s has the statutory law of contracts in his favor. In a contract, the seller and the purchaser have certain rights and obligations. Four basics must be met for a contract to be created (Chrisman, 2014). First, the offer has to be made. In the case at hand, the door-to-door salesperson made an offer of a computer to Ms. Walker. Second, the consideration has to be accepted. Ms. Walker accepted the offer to purchase a computer. The third step is capacity. The purchaser must be legally capable of entering into a contract; minors and the mentally incompetent are excluded in this case. Takem’s has given Ms. Walker the computer in exchange for her payments on her store account. Finally, the intention to enter into a contract has to be present. Ms. Walker signed a bill of sale, a security agreement, and a negotiable promissory note- which is an unconditional promise to pay a certain sum of money at a certain time in the future. Though Takem’s has the advantage to combat her claims, Tommy needs to ensure that his salespeople have not made any false statements or misrepresentations to Ms. Walker as this could have legal implications for the store and against the contract (Vaccaro, 1987). Ms. Walker is legally bound by the contract she agreed to in exchange for the computer; however if there has been any misrepresentations or false statements Ms. Walker may be able, with legal assistance, to call the contract into question
Aldo shipped 10 refrigerators to Rafael pursuant to a sales contract under which title to the goods and risk of loss would pass to Rafael upon delivery to Fleet Railroad. The agreed price was $5,000. When the refrigerators were delivered to Rafael, he found they were damaged. An estimate for repairing them showed it would cost up to $1,000, and an expert opinion was to the effect that they were defective when shipped. Rafael put in a claim to Aldo, which Aldo rejected. Rafael then wrote to Aldo, “I don’t like to get into a despite of this nature. I am enclosing my check for $4,000 in full payment of the shipment.” Aldo did not reply, but he cashed the check and then sued Rafael for the $1,000 balance. May he recover? Explain.
However, the fourth element, which is "legal object," may not be satisfied between Sam and the chain store because there was nothing in writing, nothing was “drawn.” An oral promise would make the contract invalid if the completion of that promise will take more than a year from the date of agreement. However, if the chain store has written proof confirming Sam 's promise, for example, advertisements, invoices that the store only prepares in the regular course of business after an oral promise for a product delivery has been made, a court may consider Sam 's oral promise legally binding. Then it would be considered a "primary obligation" (since there was a debt incurred in anticipation of the sale of his invention at their stores). In that event, the contract does not need to be in writing to be enforced since primary obligations are not within the statute of frauds. So if the chain store does not get their 1000
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 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.
The Massachusetts Lemon Law protects any used car, truck, van, or demonstration vehicle as has been defined by Massachusetts state standards. Under the Lemon Law, dealers are required to conduct any repairs that compromise the use or safety of the vehicle during the warranty period. If you caused these problems yourself, however, whether through negligence or making changes to the vehicle, then the dealer is not recovered to cover the repairs under the warranty. If the vehicle is purchased through a private part seller, then it is required that the buyers are informed of any defects that could compromised the use or safety of a
In the last decade, wireless communications technology has grown rapidly in the global business community. The convergence of two key wireless technologies- mobile wireless communications and the internet has presented a plethora of opportunities for organizations through mobile business hereinafter referred to simply as m-business. M-business is a new business model which utilizes the internet for data/voice transmission through the deployment of wireless devices like smart phones, tablets and e-purses (Gartner, n.d. ). According to Picoto, Belanger and Palma-dos-Reis (2013) m-business has revolutionized the way organizations conduct business as customers are increasingly resorting to m-business. This pragmatic shift can be explained by the reliance on mobile devices for example smart phones to shop online. Undoubtedly, the market for m-business is on an upward growth curve with forecasts establishing higher global uptakes in coming years (Picoto, Belanger, & Palma-dos-Reis, 2013). With such high growth potential, one cannot help but ask what value m-business holds for contemporary organizations?
Your company became inundated with orders, far in excess of your ability to meet the demand. A company in Connecticut offered to pay you twice the going rate for your products, but the company also required you to sign an output contract as a part of the deal. Section 2-306 of the Uniform Commercial Code: “A lawful agreement by either the seller or the buyer for exclusive dealing in the kind of goods concerned imposes unless otherwise agreed an obligation by the seller to use best efforts to supply the goods and by the buyer to use best efforts to promote their sale” (pg. 766). Based on good faith Don, was advised on the current situation of ending the unilateral contract with my company. Upon notification Don became very angry and informed me that he expected to be supplied with all the products he needed, when he needed it, and at the prices he had always paid. “For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows” (1 Timothy 6:10, New King James Version). Don brought up a requirements contract between businesses as well as an implied duty of good faith and fair dealing that had evolved based on our ongoing business relationship. What Don is not understanding is that the requirements contract is a
A binding contract was formed between Beem and myself on May 2 when Beem received 50% of the agreed upon purchase price for car parts. The following day, Beem informs me he will not deliver the parts per our agreement, therefore breaching our contract. Later that day I discover Beem is insolvent, consequently that significantly limits my remedy options, however, I would seek specific performance and punitive damages.
A breach of contract is often grounds for a lawsuit,but a breach of contract is often not considered to be a tort at all, it must ordinarily be redressed under the rules for contracts , not the rules for
The owner could have had the job done correctly the first time and should have double checked everything to make sure it was done on the day his workers finished the job. By doing this he would have prevented a lot of phone calls from Stu and it would have made Stu a lot happier. On the other hand, say if they would have forgotten to do the small things, the owner should have had one of his employees go out to Stu Murphy's house and finish the job the day after he received the phone call. If one of his employees was not able to finish the job then the owner should have gone out to the house and finished the job himself. It is ultimately his job to make sure that all of his customers are satisfied because like stated in the case, his main form of advertisement is word of mouth. After the job was finished, the owner should then call Mr. Murphy or go by his house and make sure that the job was everything the Stu was looking for, even if he does not get a
The owner of Queensburgh Vet is a very difficult customer to deal with. She is always complaining about something and conversation also end up in an argument. One example is the discount that we give her monthly on her purchases. She supposed to get 12% on her purchases but it only supposed to be applied to non-pharmaceuticals items. She also needed to maintain a purchase value of R20000 on non-pharmaceuticals items. Our internal staff was giving her 12% on all products which made this account non variable. When this was pickup by me, I instructed our account person who deals with her to inform her that the discount structure was incorrect and we will apply the same discount structure like everyone else. I had asked the account person to deal with her because I myself did not want to deal with her. She took her business elsewhere which is about R50000 per month. She has also spoke to other vet and we are having
> Explain whether the printer was justified in ceasing the work on book and entitled for the payment for the work done.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
After accomplishing the goal of tapping the local market and attaining the sales quota, iTeam, Inc. is now thinking of coming out from its box. But before anything else, they got to mind their previous mistakes and existing issues first. Since the main problem of iTeam, Inc, is that the firm does not have a well-established sales program, given the fact that they had been known in the American high technology industry as this company which topped off on their first five years, we have come to the objective of looking and establishing a solution concerning with a proper sales plan that will make the company regain its profit loss.