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Contract Law. Westwood Ltds - Case Study Example

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Clint is the owner of a retail toy store. On Monday, Clint visited Westwood Ltd, a manufacturer of plastic toys. Westwood Ltd explained to Clint that it had just 500 identical toy guns left in stock in its warehouse. Clint was informed that Westwood Ltd had decided not to produce any more toy guns and that it wished to sell its remaining stock as soon as possible…
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Contract Law. Westwood Ltds

Download file to see previous pages... Clint inspected the machine and, thinking that it would be appreciated by both the customers and staff of his toy store, agreed to buy it. The toy store had never had a drinks vending machine before nor anything like it. Westwood Ltd said that it would partially dismantle the machine and pack it into a wooden crate in order to make it easier for Clint to take delivery. Delivery was arranged for the following week with payment to be made on delivery.
On Tuesday, the warehouse manager of Westwood Ltd packed the remaining stock of 500 toy guns into two separate wooden crates, one containing 200 and the other 300. Westwood Ltd had not yet managed to find anyone other than Clint to purchase any of the toy guns. The warehouse manager screwed a wooden lid onto the crate of 200 toy guns and then marked it with Clint's name ready for delivery. The crate of 300 toy guns remained directly next to the crate of 200 toys guns which was now marked for Clint.
On Tuesday night, vandals broke into Westwood Ltd's warehouse and destroyed the crate of 200 toy guns labelled for Clint. The vending machine as agreed to be sold to Clint was also damaged. The crate of 300 toy guns was not damaged.
3) Further explain how your advice would differ, if at all, if the retail toy store referred to above wa...

Background of the Case

In the United Kingdom, Contract of Sale of Goods is a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money or consideration, called the price (Sec. 2, par.1, Sale of Goods Act 1979). The Sale of Goods Act 1979 is the main statute that binds the contract of sale in the United Kingdom and was amended by the following relevant or related law and legislation: Supply of Goods and Services Act 1982, Sale and Supply of Goods Act 1994, and The Sale of Goods to Consumers Regulations 2002.

A contract of sale is deemed perfected when both of the parties, the seller and the buyer, of the contract had accepted unconditionally the terms of the contract like the price, mode of payment, date and place of delivery, and others. Once a contract is perfected, certain duties are imposed under the law of contract of sales for both of the parties to perform and certain rights also were created the performance of which can be reciprocally demanded from one another (Part IV, Sales of Goods Act 1979). Normally, a contract of sale of goods should be reduced in writing to conform to the Statute of Frauds. Other form includes oral contract or combination of oral and written contracts (Sec. 4, Sale of Goods Act 1979). Failure to follow the tenor of the terms of the contract is equivalent to breach of contract by which the party at fault can be held liable for the payment of damages or other relevant legal remedies (Part VI, Sale of Goods Act 1979).

The latest relevant regulation that is The Sale of Goods to Consumers Regulations 2002, apply to a range of transactions between businesses and consumers, including the sale ...Download file to see next pagesRead More
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