Law Essay Example | Topics and Well Written Essays - 2000 words

Law - Essay Example Issues Relevant to The Contract for the Sale of the Van Misrepresentation In negotiating for the purchase of a van from Daly, Winston explained that the putative van must have a storage capability of 200 feet and must be capable of regularly transporting antique furniture up to 1 ton. Based on these requirements, Daly told Winston that he had a van the fit Winston’s requirements and a van was offered for sale and accepted based on Daly’s representations. In fact, Daly also noted that the van in question had hardly been broken in. It is a fundamental rule of contract law that the parties to a contract enter into a contract on the basis of an understanding that they will receive the benefit bargained for and forming the inducement to enter into the contract.1 In addition, should one of the contracting parties fail to perform as mandated pursuant to the contract, the party losing the benefit bargained for and reflected in the contract for sale, is entitled to compensation for that loss.2 When the party loses the entire benefit of his or her bargain, he is entitled to treat the contract as terminated.3 Under the contract for the sale of the van, Winston was promised and expected to receive a van capable of replacing the van lost in the conduct of the antique shop’s business. The truck however, turned out to be inadequate as a replacement vehicle. The question is therefore whether or not the van’s failure to live up to expectations amounts to a breach of the contract on Daly’s part. Daly did make certain representations or as it turned out, misrepresentations that the van in question was fit for purpose. Misrepresentation occurs when false information is communicated and that false information induces the other party to enter a contract to which the false information applies.4 Misrepresentation can be made fraudulently or negligently or innocently.5 It is difficult to discern from the facts of the case for discussion whether or not the false information provided by Daly that the van was fit for its intended purpose was negligent, innocent or fraudulent. However, as a skilled or experienced salesman, it can be assumed that at the very least, Daly ought to have known whether or not the van was fit for purpose. It is therefore reasonable to assume that Daly’s misrepresentation was negligent at the very least. Regardless, it will be for Winston to prove that he relied on the information communicated to him or was induced by that information to enter into the contract.6 It can be assumed from the facts that Winston did in fact rely on Daly’s communication of facts since he was looking for a specific van with specific requirements and communicated those facts to Daly. Fit for Purpose Quite apart from misrepresentation, Winston can consider taking action against Daly under statute. By statutory law, it is an implied term of contracts for the sale of goods that goods purchased for a specific purpose are fit for purpose. By virtue of Section 14 (3) of the Sale of Goods Act 1979, where a purchaser either â€Å"expressly or by implication makes known to the seller† it is implied that the â€Å"goods supplied under the contract are reasonably fit for that purpose† unless the purchaser â€Å"does not rely,† on the â€Å"skill or judgment of the seller†.7 Winston can prove that he rel