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Bus law - Case Study Example

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Subject Topic Introduction Contract of sale is agreement of two parties or entities on the delivery of promise or good in exchange for valuable consideration or payment (Hill & Hill, 2005). There are fundamental elements for consideration in a contract: presence of an offer, acceptance of offer after meeting of minds, delivery of goods or service or a promise to perform, payment or valuable consideration, terms and conditions, actual performance or delivery of goods or services (Hill & Hill, 2005)…
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Bus law
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Download file to see previous pages The Verbal Negotiations Winston Graham, a partner of antic dealers, went to Daly Car Sales Ltd., a commercial vehicle dealer, to purchase a van after one of their three delivery vans was “written-off” in an an accident. Graham conveyed that he was in search for a replacement vehicle that can load up to 1 ton and a cubic capacity of 200 feet. He also explained that the vehicle will be maximized for regular delivery of furniture, their business, and that the average journey would involve normally four or fine large items of furniture. Immediately, Alan Daly retorted that there was an available van that will befit Graham needs. He was referring to a White Transit XL which he warrants as a van with capacity to run at a distance of 48,000 miles on the clock and the storage capacity suitable enough for delivery of furniture. ...
The asking price was L4,800 (plus VAT) but Winston counter-offered a price of L 4,500 (plus VAT). Mr. Daly finally accepted Winston’s offer and they proceeded in signing the contract of sale, the latter was a standard form contract, the nature of which implied “take it or leave it” concept. Daly wrote “White, Transit XL, 48,072 miles” as details of the object of the contract. A week after the delivery of van, the firm’s driver reported a serious oil leak and a technical problem with its clutch. These problems were conveyed to Mr. Daly via telephone who assured Graham that his company would look into the problem if it will be returned to them before the end of the week. Graham failed to follow Daly’s advice following series of delivery schedules. Said van collected five antique desks and other heavy items which reached approximately the weight of 1 ton, just when its brake failed to stop the vehicle at a junction. Luckily, they were able to escape possible accident. But such experience made the driver decide not ever to use the new van for deliveries and collection to evade possible circumstance that an accident could happen anytime van’s defective engine and brake. The firm however used the van for “light duties” until it finally came to a halt. After thorough mechanical inspection, it was reported that the van necessitate complete replacement of engine and of clutch. Report also bared that the damage is attributable to constant loss of oil. The van’s total repair will cost more than L 1,000. While at this state, Graham discovered that the vehicle has only a cubic capacity of 150 feet and a load of half a ton. The Exclusion Clause The contract of the sale of van had an exclusion clause under Clause ...Download file to see next pagesRead More
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