Contract Law Advice Style Answer

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Arron and Tracy have entered into three different types of contracts. Firstly, there is a contract for sale of goods between Tracy and HAL[1] for the purchase of the coffee machine. Secondly, there is a contract for service among Arron and Matthew for the decoration of the hallway.

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Then, there is a contract for sale of description between the Arron and the dog-seller for the purchase of dog. The contracts appeared to be consumer contracts, since they satisfied the requirements established under the Unfair Contract Terms Act[2]. Section 12[3] states that a person dealing under a consumer contract is when one party performed in the course of a business and not the other party. Moreover, the goods in consideration must be ‘of a type ordinarily supplied for private use’.[4] Section 2(1) of the Sale of Goods Act[5]states that for a consumer contract to exist there must be ‘a money consideration’. In application, it is clear that Arron and Tracy are consumers, which are not acting in the course of the business, but we cannot say the same for the other parties. In the cases of Stevenson[6] and R & B Customs[7], the term ‘in the course of a business’[8] is wisely explained, it is clear that the other parties who contracted with them are included. THE LUXURY COFFEE MACHINE* The purchase of the luxury coffee falls under the implied terms of s. 14 SGA[9], which says that the goods supplied must be of “satisfactory quality”. Under S.14 (2A)[10], the test is that of ‘a reasonable person’ would regard as satisfactory. Thus, when the coffee machine was bought no one will expect it to burn hands and to be unsafe (considering the criteria in s.14 (2B)[11] of the act. Here, it includes safety as per s.14 (2B) (d)[12]. Indeed, the General Product Safety Regulations 2005[13] has included electrical equipment as having a requirement to be safe, by being properly insulted. However, this is not the case when the coffee machine becomes too hot which is clearly unsafe. It is clear though that s.14[14] is in breached since the product supplied burnt hands by becoming too hot. Consequently, Tracy can return or ask for a refund of the price (£150) and damages. Nevertheless, in order to entitle to this, it must be established that Tracy has not “accepted” the product. Otherwise, if it has taken place the remedy is damages only which will be under s.11 (4).[15] Furthermore, s.35 (4)[16] says that acceptance occurred when a buyer retain the goods for a certain period of time without intimating to the seller that she rejected it.

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