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The Contract between Surflife Ltd and Punked Jeans Pty Ltd - Case Study Example

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The object of analysis for the purpose of this study is the contract between Surflife Ltd and Punked Jeans Pty Ltd (PJ) that reflects a mutual agreement on the orders placed by the Surflife Company and the terms of delivery of the goods to the company by the PJ Company…
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The Contract between Surflife Ltd and Punked Jeans Pty Ltd
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Download file to see previous pages The terms were also accepted by the Surflife Company and they replied through an email with their expression of happiness with the terms. Although there was no exchange of any other terms, the two parties could be understood to be in terms of an agreement and involved in a contract. However, the problem had arisen in the delivery on part of the PJ Company owing to a mistake occurred by one of the employees of the company who was responsible for the supply of the goods to the customer. The employee, not following the instructions properly, got the wrong orders ready for shipment and supply. The number of jeans supplied was 12,000 instead of 15,000 and another set of orders were also supplied that the buyer company had never requested for. Moreover, he proved to be careless in the packing of the goods that suffered damage later in the process. When the goods were finally delivered to the company, it was delayed and the majority of the goods were destroyed in rain and ill-treatment of the suppliers. Thus after suffering a huge loss, the company was not willing to pay for the goods to the PJ Company. The question that arises here deals with the rights and obligations of the PJ Company and how the dissatisfaction of the Surflife Company could be addressed and resolved. According to the Sale of Goods Act (1979), sections 13 and 14 state that if goods are contracted to be sold by description, then the buyer has the rights to receive the goods as have been described by the seller in the contract, particularly if the buyer has not examined the goods before the contract was entered into by the two parties. As section 13(1) state, “Where there is a contract for the sale of goods by description, there is an implied condition that the goods will correspond with the description”. It can be understood in this case that the Surflife Company had ordered the pairs of jeans but had not examined the goods before entering into the contract. The contract of the sale of goods in this context was thus a sale by description. The goods that were delivered to the Surflife Company did not match with the description of the goods stated in the contract by the PJ Company. Hence a violation in the contract could be seen to have occurred and Surflife Company in this scenario had the rights to sue the seller company. Being the seller company and one of the parties to the contract where the order was clearly stated along with the date of delivery and the size of the order, PJ Company had certain rights and obligations in regard to the delivery of goods to the customer. The seller had the rights to dispose of goods if all conditions are not fulfilled on the part of the buyer or owing to other circumstances (sec 25(1)). The seller company might consider the goods to have been delivered if the buyer expresses acceptance or if the goods are retained by the buyer company without giving any further notice (sec 24). Moreover, the seller had the rights to supply the goods only when the buyer demanded it (sec 35) and such goods may also be supplied in installments (sec 39(1)). The seller may keep hold of the goods till the payment procedure is completed (sec 47(1)) and in the process, the company might have hindered the process of shipment or transportation of the goods and regain it after payment is done (sec 49(2), sec 50). The goods might also be resold by the seller company depending on circumstances (sec 54). Also, the company could sue the buyer company if the latter showed any breach of conduct. ...Download file to see next pages Read More
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