Business Law

 

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Ref No: 3582

G and H Holmes

In the situation provided, certain details are pertinent to be known for G and H Holmes to advise according to the rights and remedies available to them.

In the case presented,Business Law. One item is custom made by Hopkins limited for GandH Holmes whilst two items have been selected or ordered from the stock readily available at Hopkins Limited, suggesting one item as defined “Future good” and two items selected from the readily available stock as “existing goods.”

It is crucial to identify that offer and acceptance existed among both parties, provided that custom made and ready made solutions were chosen and designated to be delivered to G and H Holmes.

At the same time, the necessary distinction between sale, an executed contract versus agreement to sell, an executory contract is fundamental to aid rights and remedies available to G and H Holmes.

For the case of the future good, being the carpet, the contract is an agreement to sell while in case of existing furniture, the contract is known to be a contract of sale.

However, in the case presented, the furniture needed to be fitted and delivered to G and H Holmes, suggesting that the effective transfer of ownership still had to take place.

Business Law. Just the night before the day of delivery and thereby the effective day of transfer of effective ownership, the furniture was destroyed by fire, a circumstance beyond the control of Hopkins Limited.

Although the fire was not due to negligence or mismanagement on behalf of Hopkins Limited, the loss bearer in this scenario appears to be Hopkins Limited.

Business Law considering the delivery was not made and thus until before delivery to the point of sale, the ownership still fell under Hopkins Limited and jointly all the risks associated with the furniture.

Considering the transfer did not take place, and no material loss was incurred to G and H Holmes, the company did find itself at a loss of custom made requirements for the office.

Since risk of loss is not transferred to the buyer, in this case, G and H Holmes immediately, buyer can sue the seller for damages only, which may be provision of similar furniture to be provided to G and H Holmes by Hopkins limited from the available stock to compensate for the loss of time and ordered products.

Mr. & Mrs. Green

The contract under discussion is that of an agreement to sell, whereby sale is in effect fulfilled in future time subject to conditions or when the time of the agreement elapses(Sales of Goods Act).

Because the contract is that of a service that needs to be completed,Business Law the contract has some underlying assumptions that were not concretely put forward in the contract, two of the basic elements of which were missing, being the price and the precise day of completion.

The couple may have sought for the least expensive service provider however the tailor-made task was not subjected to an agreed price for an agreed time wherewith the contract would have known to be completed.

Both elements need to be decided during the time the contract is made to ensure both parties remain subject to agreed terms and ensure that the work to be done is completed according to the buyer’s and seller’s negotiations to avoid future conflicts.

At the same time, a rough estimated was provided by the seller that may have prompted the buyers, in this case,

Mr. and Mrs. Green to engage in a contract.Business Law however, the intention of fulfillment upon the terms of the estimated price of £ 8000, were not dictated to the buyer.

More problematic notion perhaps is the quality of output produced. It is stated that the extension of the house did not match the brick color of the house itself and despite the length of time taken to complete the job, leakage was experienced in the roof’s extension.

The prospect of quality of work and output if outlined or pre-decided is mentioned within the contract, and similar actions in case of failure of fulfillment are made clear. However irrespective of the details included within an agreement to sell, it may be stated that certain basic ethics are to be obliged by either party.

The buyer is required to pay when the sale has been made, and the seller has the duty to ensure that the good or service being sold holds up to certain minimalistic standards.

In this case, Mr. and Mrs. Green have the right to hold the Easybuild Ltd to redo the job or pay for the damages recently caused, which have occurred due to negligence on the part of Easybuild Ltd owing to poor quality of work performed.

Task 2

Julia’s case presents a classic case for unliquidated damages. The aim of unliquidated damages is to restore a person or the injured party in a position they may have been in, had the contract been carried out properly.

Under unliquidated damages, the person suffering personal injury is to be compensated as it is deemed as a loss.

Court outlines damage to include financial or monetary compensation, damage to property, personal injury and distress, disappointment and upset caused to the person(Riches & Allen).

In the case presented, the contract in operation deems an implied statement, which is that the vehicle is safe to use, whilst it is the faulty design of the brakes that caused the break to fail.

Thus unliquidated damages in the form of monetary compensation for the £900 loss incurred and medical bills for Julia need to be paid for by the company responsible.

At the same time, it is essential to note that Julia and the company manufacturing the brakes are not the sole stakeholders in the matter.

The French company designing the brakes to the company in the UK selling them are all stakeholders along with many consumers like Julia who have purchased the scooter and may similarly have their lives at stake. Thus Julia may sue the French company as well for the faulty design of the breaks.

Task 3

1. Different types of credit agreements fall under the Consumer Credit Act and are thereby regulated in accordance with the act. Over and above credit and store cards, bank overdrafts and personal loans, four types of credit agreements are overseen under this act. These include:

 

• Credit sale agreements: These agreements are frequently made to pay for goods that may be highly priced or may be of high value.

 

• This agreement prompts the transfer of ownership from the seller to the buyer when the agreement is signed. However, the payment of the good or commodity under consideration may be made in installments or as decided by both parties.

 

• Hire Purchase agreements: Hire Purchase agreements to allow for the hire or use of the commodity until the agreed term for payment of the usage.

 

• Until the hire term is complete, the transfer of ownership remains with the seller. However once the term is over for the payments, the buyer becomes the effective owner of the product.

 

• Hire agreements: Hire agreements are similar to Hire Purchase agreements, except the at the end of the payment period, no transfer of ownership takes place, and the item of hire remains under use by the buyer until payments are completed.

 

• Conditional agreements(Catriona): These agreements overlap considerably with hire purchase agreements, however, is distinguished by the conditional feature.

 

• The ownership is transferred on the conditions tailored to the buyer and seller mutually.

An agent is a party or a person who acts on behalf of someone, also known as the principal, while dealing with a third party, assuming that the agent is provided with…..