The paper "Problems in Contract Law" is a wonderful example of a Law Case Study. Basically a contract is an agreement that is reached by two people voluntarily and this agreement that is reached by the two parties has legal consequences or the intentions to create legal consequences (Elliot, & Quinn 2003, p 2). While the term agreement may imply that a contract has to be written, oral contracts also act the same as written contract (Frey & Frey 2000, p 22). The U. K. government legislation defines SAG 1979 as an Act that governs all contracts of sale of goods which are entered into when a buyer buys goods from seller.
The SAG 1979 therefore reinforces what the Unfair Contract Terms Act 1977 protects by having some implied terms. Thus, the SAG 1979 terms are applied in all contracts of SAG regardless of the terms that the contractual parties had agreed on. However, for a contract to be termed as a contract of sale it has to be a contract that is involving the transfer of ownership of the goods and the consideration for the transfer of the goods is in monetary terms.
This therefore eliminates barter trade as being termed as contracts of sale (Blair & Britain 1980, p9) Issue 1 A contract is said to be made up of several elements with one of the elements to a contract being mutual assent which is arrived at when an offer is made by one party and the other party agrees to the offeror in contractual terms accepts the offer (Editors & Vook 2011, p15). The crossroads where an offer is met by acceptance, a contract is therefore borne and hence in the case of Hot Air Limited and Portsmouth Gallery, there was a contract between the two parties (Eisenberg & Fuller 2006, p 7).
However, the case between Hot Air Limited and Portsmouth draws another dimension of contract law in that the offer that was made to Portsmouth Gallery was meet with unqualified acceptance and hence such an acceptance is not meant to change the terms of the contract which stipulated that refunds for goods once bought can only be made within 7 days after the goods are sold (Knapp, Crystal & Prince 2007, p 20). This, therefore, brings light into the fact that just because Portsmouth Gallery partners realized that the humidifier was faulty two months after purchase will not change the terms of the contract that Hot Air Limited cannot give a refund for the commodity sold and not returned within seven days of purchase as stipulated in the contract.
To further emphasis on the point, another basic point to consider when entering into a contract between two parties is that parties to contract must be of sound mind and age in order to contract and therefore Portsmouth Gallery partners when they entered into a contract with Hot Air Limited must have read the terms of the contract that goods were only to be refunded if the goods were to be returned within 7 days after they are purchased.
Law generally does not give provision for ignorance and hence the terms of the contract stipulated that such an item could not be refunded. In addition, among the key facts that SAG 1979 presents in relation to whether a buyer can return goods and request for a refund is the fact that if goods are unsatisfactory and therefore do not meet the quality that is expected or should be expected by any reasonable person at the time that the sale took place, the buyer is, therefore, liable for a refund but the refund is subject to the terms that are specified in the contract which in this case, the terms of the contract are clear that the refund for goods can only occur after seven days of purchase (Beale, Bishop & Furmston 2007, p20).
Within the first six months of the purchase, the onus of proving that the good(s) is not faulty and hence can be repaired or replaced depending on the terms of the contract is on the seller. After six months of purchase of the good(s), the onus of proving that the good(s) was faulty at the time of purchase is on the buyer who must prove beyond a reasonable doubt that the good ought to be repaired by the seller (Fuller 2010, p45).
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