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British Legal systems and Contract law - Essay Example

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There has been a breach of contract since there was an implied term in the contract that the materials would be delivered at Aberdeen plant. The personnel at Metalinque Ltd were aware of the fact that the materials were to be sent to the plant situated at Aberdeen, and by delivering the materials at London, they have committed a fault, although it may be said in their defense, that the contract was signed with the Company's buyers based at the London Office…
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British Legal systems and Contract law
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Download file to see previous pages In the leading case of Olley v.Marlborourgh Court Hotel (1949) 1 KB 552, a lady deposited her fur cloak in the hotel locker which was subsequently stolen. She sued the hotel for loss of the cloak, but the hotel management pleaded that in the contract of service there was a specific disclaimer for liability arising out of theft. It transpired that the disclaimer notice was in the hotel room, and not at the reception where the contract was enforced between the lady and the hotel management. 1
Moreover she did not have constructive notice of this diclaimer when she booked her room. The Court held that the hotel was liable for the loss since, the claimant was not aware of the facts at the time of booking the contract. However, in this case, it is seen that Metalinque was aware of the material fact that the goods need to be shipped to Aberdeen, and not delivered at London office.
The writer's opinion is that the seller, Metalinque cannot be absolved of liability in this case merely on the fact that their agreement was with the London office, and not with the Aberdeen plant since the purpose of the agreement was not fulfilled due to (1) delay in performance and (2) Subsequent losses to the buyer, arising out of breach of contractual obligation by the seller due to material variation in delivery terms
Further if the law were to consider, the application of Section 4 and Section 4 (5) of the Supply of Goods and Services Act 1982, it is seen that there is an implied condition that the goods supplied should be fit and should serve the purpose for which it is sought. It is also seen that in the event that a party relies on the skill or judgment of another, whether the terms are expressly, or by implication, the implied condition shall be deemed to be present. In this case there is an implied condition that goods be delivered to Aberdeen.
"Where, under a contract for the transfer of goods, the transferor transfers the property in goods in the course of a business and the transferee, expressly or by implication, makes know to the transferor, any particular purpose for which the goods are being acquired., there exists an implied condition that the goods shall meet such conditions." 2
(b) Even if there was a breach of contract, the sum sought is excessive.
Under Section 20 (2) of the Sale of Goods Act 1979, the goods remain at the seller's risk until the title in them is vested on the buyer. When the buyer has accepted the goods at London, it is deemed that delivery has been affected. However, "where delivery has been delayed through the fault of either the buyer or seller, the goods are at risk of the party at fault, as regards any loss, which may not have occurred but for such fault." 3
In this case it is seen that, prima facie, there is a fault on the part of Metalinque for having caused losses due to belated delivery. However, this fault has been alleviated to a certain extent, due to the fact that Amethyst Ltd, had not explicitly and specifically stated under Clause 20 of the Purchase Contract that the goods need to be delivered at Aberdeen. In the absence of certainty of delivery of contractual obligation, they were at liberty to ...Download file to see next pagesRead More
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