THE LAW OF CONTRACT

The law of contract



The law of contract

(a) Is there a contract between John and Jane trading as Square Deal Electrics and Mary? If so, when did it arrive into being?

Ans. Yes, there exists a contract between square Deal Electrics

and Mary as she has purchased the product from Square Deal Electrics. The basic rule of English regulation is that the owner of the house bears the risk of its impairment, deterioration or destruction. This is reflected in the Sales of items proceed 1979 at part 20:

Unless otherwise acquiesced, the items stay at the sellers risk until the house in them is transferred to the buyer, but when the house in them is transferred to the purchaser the goods are at the purchasers risk if delivery has been made or not

Therefore as it has been established that the house in this example has passed from Cirrus to the customer then if goods are impaired it follows that the risk will pass to the purchaser and that they will still be liable for the buy cost of those goods.

However there are certain exceptions to this general direct one which agreements with items impaired in transit. The allocation of risk of impairment in transit is covered by the Sale of Goods Act 1979 s32. Where the seller is authorised to drive the items to the purchaser, delivery of the items to a carrier for transmission to the buyer is treated as consignment to the buyer. The buyer is therefore treated as being in ownership of the items through the agency of the carrier while they are in transit.

If a carrier is employed by Cirrus to consign the goods to the contractual issue of consignment that carrier is the agency of the trader and the trader thus remains in constructive ownership of the goods up to that time.

Aagreement of sale can be affected by mistake or frustration in much the same way as any other contract. The Sale of items proceed comprises special provisions in ss 6 and 7 which deal with error and annoyance in one particular restricted, class of circumstances, where exact items have perished. Section 6 concerns where there is a contract for the sale of exact items and, without the information of the seller; the goods have perished before the agreement is made. It is thus concerned with a particular case of mistake and where it concerns the agreement will be void, this is not the case here as the agreement had been made before the items had perished. However Section 7 concerns where there is a agreement for the sale of exact items and, between the making of the agreement and the transient of risk from trader to purchaser, the items perish without the obvious error of either party. It thus agreements with attenuating factors which would commonly be regarded as annoying the agreement and where it concerns the agreement can be avoided.

In this position the items have perished as they have been thieved ...