Law for Business Assignment Brief Case (The Water Cooler Disaster) Essay

Law for Business Assignment Brief Case (The Water Cooler Disaster) - Essay Example In this scenario, there is clearly an agreement, whereby the trader promises to deliver 100 water coolers and 1000 50 litre replacement bottles of water in return for a consideration of ? 6000. There is the intention to create legally binding agreement, which is evidenced in writing through the terms of the contract. Consequently, a contract exists between the trader and the company. Contractual terms define the obligation of both parties to a contract. A failure to comply in full with a performance of an obligation, devoid of any lawful excuse, is a breach of the contract. In a contract for the sale of goods, there are both the express and implied conditions. Express conditions are usually spelt out in the contract, while most implied terms are statutorily derived. This scenario involves a contract of sale of goods. A contract for sale of goods is defined at section 1 of the Sale of Goods Act 1979 to mean â€Å"a contract by which the seller transfers or agrees to transfer the prop erty in goods to the buyer for a money consideration called price.† Therefore, beside the express terms in the contract, the terms implied by the Sale of Goods and Services Act 1982, shall apply. The Company can recover damages from the trader for breach of the contract. ... With regards to the express terms, the contract stipulates that the trader was to provide water coolers that take standard sized replacement bottles which are widely available. However, the water coolers actually supplied were not of universal size and design and it will not be possible to buy replacement bottles. This is breach of a condition. A condition is a term that goes to the root of the contract, the breach of which entitles the innocent party to terminate the contract and to have compensation of the damages awarded. In Behn V. Burness1 a ship was stated in the contract of charter party to be ‘now in Amsterdam.’ The fact that the ship was not in the port at the date of the contract discharged the charter from performance. Section 13(1) of sale of goods Act 1979 provides that â€Å"where there is a contract for the sale of goods by description, there is an implied condition that the goods will correspond with description.† In this scenario, the water cooler s to be delivered were described to be able to take standard sized replacement bottles. Therefore, this was a condition implied on the contract by the Sale of Goods Act 1979. To add, Sale of Goods Act implies the condition that the goods sold ought to be of merchantable quality. Section 14(2) stipulates that â€Å"where seller sells goods in the course of business, there is an implied condition that the goods supplied under the contract are of merchantable quality, except that there is no such condition-†¦ (b) If the buyer examines the goods before the contract is made, as regards defects which that examination ought to reveal.† Consequently, there is evidently breach of conditions both express and implied. A breach of a condition entitles the injured party to damages. In this scenario, the