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Commercial - Essay Example

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Commercial Law 1. Sale of aquarium to Kevin Facts of the case: On Monday, Kevin agreed to purchase aquarium from Jackie and paid for it. As part of the deal, Jackie agreed to dismantle the aquarium, package it for transit and arrange for it to be sent to Kevin’s premises by the end of the week…
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Download file to see previous pages... According to Sale of Goods Act 1979, under Section 18, if the contract is unconditional the property in the goods passes to the buyer when the contract is made immaterial of the time of payment or delivery. Kevin has given his assent for unconditional appropriation of the aquarium to the contract. As part of the deal, Jackie agreed to dismantle the aquarium, package it for transit and arrange for it to be sent to Kevin’s premises. Under Section 32 (1) of the Act, if the seller is required to send the goods, delivery of goods to a career whether named by the buyer or not for transmission to the buyer is deemed to be delivery in performance of the contract, unless there is evidence to the contrary. However this is subject to Section 32 (2) which stipulates unless otherwise authorized by the buyer, the seller must make such contract with the carrier on behalf of the buyer as may be reasonable, having regard to the nature of the goods and the other circumstances of the case. It is not clearly stated whether the aquarium has been insured. If the consignment has been insured Kevin can claim compensation from the insurance company. If Jackie has failed to insure the aquarium as a prudent buyer would have done, then the buyer may decline to treat the delivery to carrier as a delivery to him, or hold Jackie responsible in damages under the normal circumstances. However, the statement “As part of the deal, Jackie agreed to dismantle the aquarium, package it for transit and arrange for it to be sent to Kevin’s premises by the end of the week” indicates that Jackie has complied with the instructions of Kevin and done as he has been authorised. Advice: Jackie has made delivery according to the contractual terms. He cannot he held responsible in damages or loss. 2. Sale of canary feed to Leah Facts of the case: On Thursday morning Leah placed an order for 75 bags of canary feed for despatch on Monday. The order was accepted and the payment to be made within 10 days of despatch. On Thursday evening, Jackie discovered that some of her stock records were incorrect and that there were in fact just 25 bags of canary feed. Jackie has now contacted Leah to cancel the contract. Analysis: The contract was based on valid offer, acceptance and consideration. The agreement was legally binding as there were intentions on the part of Jackie and Leah to create legal relations. The offer cannot be considered ‘invitation to treat’. Therefore, Jackie has the duty to deliver canary feed. Otherwise, she is liable for action in damages for non delivery under section 51. ...Download file to see next pagesRead More
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