CL510 Assignment 2. Semester 2 May 2010 Student name: Victoria Lenchik Student ID: 700160 Question A 1) When there is a breach of contract the breaching party is liable for the damages. “The buyer’s rights include the right to reject the goods in some circumstances, the right to recover the price if already paid for total failure of consideration, damages for breach of warranty, damages for non-delivery, and an action to recover the goods and obtain consequential damages. (Understanding Commercial Law Edition 6 Summary page 403(24). The laundry recovered loss of profit because they didn’t receive the boiler on time which is obviously led to the loss of some profit for them. 2) The court awarded the plaintiff damages for loss of profit due to the late delivery. The defendant didn’t know about the special government contact, so that’s why the plaintiff did not receive it. Question B ) Section 30 states that it is the buyer’s duty to accept the goods. If he or she failed to do so, he or she can be sued for damages for non-acceptance. The buyer has the right to examine the goods, if he or she has not previously had the chance to do so the opportunity to do so must be given on request” example Finch Motors v Quin ( no 2) 1980. Source: Understanding Commercial Law Edition six page 390 – 391. The damages Huia Kiwifruit ltd would likely face are “ estimated loss directly and naturally resulting in the ordinary course of events, from the buyers breach of contract” Huia Kiwifruit ltd has to sell the goods elsewhere and if there is any loss made on the resale that will be what is claimed by way of damages and if there is an available market for the goods , the damages will be the difference between the contract price and the market price at the time when the goods ought to have been accepted. Circumstances in which breach of contract will enable discharge to occur are found in the Contractual Remedies Act 1979”. (Understanding Commercial Law Edition six Page 265). 2) Regarding to this situation we can see that Devil is in the role of the victim because the delivery of the fish to him was delayed. CL510 Assignment 2. Semester 2 May 2010 Student Name: Victoria Lenchik Student ID: 700160 “Section 52 is the mirror image for the buyer of the seller’s rights in section 51. This action for damages for non-delivery is subject to the Hadley v Baxendale rule, and often to the availability of a market for purchase of alternative goods at whatever price they can be obtained” (Understanding Commercial Law Edition Six page 399). Devlin can claim lost of damages for late supply. Contracts do not last for long in some cases. Question C TRUE OR FALSE 1. All agreements are contract – False 2. A gratuitous promise is not a contract- True 3. All contract must be in writing- False 4. A void contract has no effect in law- True 5. Consensus ad idem refers to the requirements that both parties to the contract must be give consideration- False 6. Breach of contract refers to the failure to carry out all or any of the obligations of the contract- True 7. The usual remedy for breach of contract is specific performance- True References * Understanding Commercial Law book by Gerbic Lawrence ( Sixth Edition).
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