Sales of Goods

National and International Sales of Goods (NISG)



National and International Sales of Goods (NISG)

Part A - National Element

Overview

Barry is the managing director of BB Building Company. As business is looking good, he's decided to buy a yacht for entertaining his wealthy clients and a rowing boat for his own personal use.

He visits the Mega Marine Store (MMS) and explains his requirements to Charlie who is a marine electrical expert and sales assistant. Charlie recommends the Coracle rowing boat and the Force 10 luxury motor yacht. However, Yacht was not remains satisfactory and Barry wants his money back but Charlie Refuse to pay.

Issue

Barry demands his money back but Charlie refuses. He points to a clause in the contract which Barry signed which states that in return for MMS undertaking to rectify defects appearing in the yacht within a year, liability would be limited to a sum not greater than 50% of the sale price.

 Barry had not read the contract fully and is now concerned as he has lost the business of his key customers since the disastrous trip.

Advice to Barry

There are some recommendations to Barry that helps him to overcome the issue. Lets we start this case from basics, Contract of Sales, its obligations passing of property and risk exclusion clauses under Sales of Good Act 1979.

Contract of sale

Firs and most important that buyer to consider that he should read a contract complete before signing such a huge deal. In this case, Barry made a mistake and starts suffering to lose his customers. Contract of sales refers to a official contract in which vendor agree to sell and purchaser agree to buy, in a certain conditions and situation which spell out writing the document sign by both parties (Golub, 2005). In other words it is an agreement to transfer a title of real property, tangible price at a given price. Actually it is effected by the delivery of acknowledge, sealed and signed and it may happen in days or it will take months.

Contractual Obligations

Law of contract is a heart of majority of business which is one of the most significant areas and involves on complexities and circumstances that is we have seen in the above case as well where contract sign play an important role (Vogel, 2002). Contract obligations are an agreement with specific terms between two parties in which a promise has been made to do something in return of the valuable benefits as a consideration (Moyle, 2008).

In the above case Charlie has not partially complete it contract obligations because ownership of Yacht has been transfer to Barry but quality of goods has been not delivered. Only after two week of goods transfer, yacht incurred a hole in it that is furious for buyer (Barry). Obligation of contract also indicates that if either party has fails to perform their contractual obligations to the contract term, than it is result to be breach of contract.

The Most Important non-sale of Goods ...