Commercial Law

Running head: COMMERCIAL LAW 1

COMMERCIAL LAW

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COMMERCIAL LAW 2

Sale of Goods Law – A Case Study!

The case under consideration today concerns Hillary, who is a buyer at Campbell, who

owns a local hardware shop and has sort help on how to build a trellis system of grapevines to

grow on. Campbell recommended wooden post made from treated timber which he advocated to

support the weight of grape vines suitable to stand up the weather. The first thing which needs to

be considered is whether it is advisable for compensation because of breach of contract during

and after delivery of goods. This may include giving wrong information on the product sold. The

essential part of the contract include the offer and acceptance the consideration elements of the

contract where both the sellers and the buyers received the intended portion since the goods were

not fit for the purpose an element of a contract calling invitation to treat.

I, therefore, I will rule for compensation or a refund to Hillary. Subject to the provisions

of this Act and any Act in that on behalf, there is no implied warranty or condition as to the

quality or fitness for any particular purpose of goods supplied under a contract of sale except as

follows as indicated in the sales of goods act chapter 16(1). And therefore i quote " Where the

buyer expressly or by implication makes known to the seller the particular purpose for

which the goods are required so as to show that the buyer relies on the seller's skill or judgment

and the goods are of a description that it is in the course of the seller's business to supply.

Whether he be the manufacturer or not, there is an implied condition that the goods shall be

reasonably fit for that purpose ". For this case, Hillary seeks organic certification, but due to

Campbell skills, he recommended for her was not fit for her grapevine purpose, proving that a

refund is very crucial “ According to Sales of Goods Act 1908.

In section 35, the buyer accepted the goods when he initiated to the seller that he has

accepted them when Hillary takes the goods she finds them very appropriate and cannot be used.

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I, therefore, will conclude that full compensation needs to be given to Hillary for being given

inappropriate goods and full refund needs to be given to her.

Q(2)

The issue here is Paul fails to deliver the Pinot Gris grapes. And due to Hillary demand

for the goods, Paul delivered four tones instead of two tons which she had paid on earlier

according to the sales of goods act 1908 Hillary can take legal issues in consideration to the

grapes hence breaching the contract as documented in the sales and goods act 1908. Despite Paul

being paid in time, Hillary can take action regarding the law on Paul. For instance, Paul

wrongfully fails or refuses to deliver the goods to the buyer. Hillary can decide to take action

against Paul for damages for non-delivery or by the delay too. This measure can be estimated by

the number of customer Hillary will loose and naturally resulting in the ordinary course of events

from the seller's breach of contract.

Damages caused by Non-delivery

Since Hillary had potential and ready market of the goods in question, Hillary can seek

legal advice and measure of damages is prima facie to be ascertained. The prima facie makes the

difference between the contract price and the market or current price of the goods at the time or

times when they ought to have been delivered or if no time was fixed then at the time of the

refusal to deliver according to section 50(1).

“In chapter 51(1) of sales of Goods act of 1908, In an action for breach of contract to

deliver specific or ascertained goods the court may if it thinks fit on the application of the

plaintiff by its judgment direct that the contract shall be explicitly performed without giving the

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defendant the option of retaining the goods on payment of damages” According to Sales of

Goods act 1908.

30(2)” Where the seller delivers to the buyer a number of goods more extensive than he

contracted to sell the buyer may accept the goods included in the contract and reject the rest, or

he may reject the whole and if the buyer accepts the whole of the goods so delivered he must pay

for them at the contract rate.” According to Sales of Goods act 1908.

In this case, the police realized that Paul fits the description of a suspect providing the

probable course for a breach of contract because of his failure to deliver goods within the

stipulated allocated time causing damage to Hillary as a result of negligence even if the firm was

going to be closed down due to insolvency. The court may grant Paul a waiver because his firm

was under insolvency and fails to grant Hillary compensation on the damages caused when she

lost customers because it's tough to determine the number of customers who may have visited

her on the said day.

SECTION C

The issue in section Barry gives the wrong information on the state of the goods. He

decides one night to sell the grapevine to Hillary knowing the goods are infested with pest not

informing Hillary on the fungal state of the firm. According to the contractual mistake acts,

Hillary has a right to ask for compensation for what she would have gotten from the land in these

three years. “”According to the purpose of the Act, the rules guide that and without t limiting the

meaning of the term mistake of law, but subject to section 6(2)(a), a mistake in the interpretation

of a document is a mistake of law. (3)There is a contract for this Act where a contract would

have come into existence but for circumstances of the kind described in section 6(1)(a)of this

Act”” According to Contractual Mistake Act 1977.

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Hillary could use this rule to help her find out the possible compensation for the time

wasted while replanting a new grapevine. The time will take quite some time to operate;

meanwhile, Hillary will be losing customers every day. In conclusion, Barry was at fault, and he

is liable for compensating Hilary on the loss she may have accrued for the three years she will

not be operating

Section D

Henry is going under insolvency, here Hillary needs to critically evaluate Henry

capability to pay goods even if his records of financial problems. Hillary needs not to sell the

goods to Henry since Henry insolvency capabilities remain higher than expected. As seen in the

Romalpa Clause, the clause main intention is to keep the title to the goods for sale with the seller

under the buyer fulfills their required obligations, including payment of purchase price. Hillary

may fail to supply the goods to Henry because Henry is insolvent, and if in any case, she sells the

goods, then she can reclaim the goods from the insolvency administrator because the products

belonged to Hillary, not Henry. Romalpa clause act as security giving overwhelming support to

Hillary over Henry incapability not to pay the products with both instances standing on their

favors

Security Interest

Hillary after providing the goods to Henry, then due to financial capabilities he is

unable to pay, then Hillary under security interest he is in a position to collect the goods when

Henry is not in a place to. Showing that the property right of Hillary, whose right to credit debt is

secured by the property. When Hillary gives the goods to Henry, then she technically borrows

known as a creditor who is also referred to as a secured party. Through this security, Hillary will

be having secured transactions making her a party with a legal capability of taking possession of

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collateral in the event of the debtor's failure to pay. Hillary needs to have the best steps to ensure

security interest. However, for Hillary to have a secured party to more fully ensure its legal rights

if other parties are asserting an interest in the same piece of collateral.

Attachment

In any case, Hillary sells the goods to Henry and Henry fails to pay in advance then she

will need to have an attachment that will help her to apprehending, or seizing persons or

property, by a writ. When presented to a legal court and a judicial order by bringing the same

into the custody of the law, used either for the purpose of bringing a person before the court, of

acquiring jurisdiction over the property seized, to compel an appearance in this case the person

will be forced to pay the goods within the stipulated time. Attachment will act as a security for

Hillary, helping her to know what precisely the necessary steps needed to get her compensation

when the goods are delivered. Domestic attachment will be accorded to Henry since they operate

within the same jurisdiction.

Perfection

This are extra steps taken when security interest is put into consideration, enabling the

taking of effects on the third parties tied during transaction curbing defaults by the grantees

during transaction. On the attachments are security interest steps linking the goods under

transaction to security interest. For instance, perfection has three kinds of principle underlying it.

This interest includes possession of the collateral, statutory registration or filing, and notice to

the debtor or a fund holder. Due to Henry financial position not to pay goods and services and

security interest is taken care of, then Hillary will be forced to go a step higher to use perfection

helping her to recover her resources when there's a financial loss. Hillary needs to have the best

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measures to ensure security interest. However, for Hillary to have a secured party to more fully

ensure its legal rights if other parties are asserting an interest in the same piece of collateral.

Personal property security Register

This is an act which will help Hillary to manage credit risk from Henry. Personal

property security register will help Hillary since she is involved in many things. Apart from

planting grapes, she also runs a winery. This security interest will always secures payments of an

obligation with no regard being made to the form of transaction with the title to the property. If

Hillary has an interest in the transaction to ensure it receives security in return to the goods it has

provided. For the interest to be taken care of over Hillary property, then a secured party must

most excellent wines will enable sold without payment helping her to be the secured party may

trace the identifiable proceeds, or the money or any other benefit received under the sale.

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RIHANNA CASE STUDY

In the case study above, the main issue here is the contractual capacity of an infant.

Despite of Drake having a tremendous voice, Rihanna realized that he's 17 years of age.

Capacity is the legally recognized right of a person to enter into a legally abiding contract. The

law will, however, limits invalid degree of such contractual capacity such as infants, minors, and

insane people in the society. The contracts made by underage are legally ruled by common law.

The general rule on this situation will, therefore, the contract made by infants may enter into a

contract that may be voidable at his option depending on the agreement.

“” The rule 86Contracts unenforceable against minors but otherwise affect (1)Every

contract entered into by a minor is unenforceable against the minor but otherwise affect as if the

minor were of full age. Secondly, on the subsection sabbatical, one (2) Subsection (1) does not

apply to a contract to which section 92(1) applies. (3). The analysis part of this is that since

Rihanna has realized that Drake is a minor, hence she needs to end the contract as seen in the

subsection above. Since the contractual capacity of the case in question, and the Sodas are still

for Rihanna, the goods remains the property of Rihanna. And therefore, I conclude that Rihanna

needs to end the contract with Drake since it is against the law to enter into a business contract

with a minor or an infant who has not reached the exact age,” according to Contract and

Commercial Law 2017.

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Question 2

In question two Rihanna is already at Nick's enterprise to pick her favorite flavored

goods; initially, she ordered 300 bottles of flavored soda, but now she's in a position to get only

200 bootless of soda. This clearly shows that the goods she is yet to pick are under quantified

less 100. She later learns that Nick is declared bankrupt. The rule that is to be provided to

Rihanna is that Rihanna ought to have taken the goods or not is documented on the rule of

consent and acceptance on the right of a buyer and the consent to transfer of property. Rihanna is

in possession after sale. This section applies if a person Rihanna has bought or agreed to buy

goods and paid the full amount, and the goods need to be in possession to Rihanna. The goods

obtained with the consent of Nick then the transfers are passed to Rihanna. Deliveries or

transfers the goods or documents of title under any sale, pledge, or other disposition, or under

any agreement for sale, guarantee, or other distribution, to another person. and I quote " Receives

the goods or documents in good faith and without notice of any lien or another right of B in

respect of the goods".ed

(2)” The delivery or transfer to C has the same effect as if the person making the delivery

or transfer were a mercantile agent in possession of the goods with the consent of the owner. (4)

Subsection (2) does not apply to a delivery or transfer of goods or documents of title to the goods

by a person who is, with the consent of the holder of a perfected security interest, in possession

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of the goods or documents of title to the goods, “according to Contract and Commercial Law

2017.

“164 (1) Determining whether buyer to take possession of goods or seller to send goods

Whether it is for the buyer to take possession of the goods or for the seller to send them to the

buyer is a question depending in each case on the contract, express or implied, between the

parties. We realized that wrong delivery of the quantity of the goods can make the buyer to reject

the goods if the seller delivers to the buyer a quantity of goods that is less than the seller

contracted to sell. In any case, the buyer accepts those goods; the buyer must pay for the goods at

the contract sale. But since Rihanna paid the goods in full, then she needs to seek legal consent

for the compensation of the paid goods and she ought to have received at the onset, “according to

Contract and Commercial Law 2017.

In conclusion, Rihanna needs to seek legal redress on the financial loss she will incur

when the goods she's is supposed to have been delivered to her. But because what she expected

or she may decide to have the financial compensation on the goods Even though Nicky has been

declared bankrupt and he can't be in a position to give what he or she doesn't own or have.

QUESTION 3

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Marshal is going under insolvency financial problems that is, here Rihanna needs to

critically evaluate Marshal Capability to pay goods even if his records of financial problems.

Rihanna needs not to sell the goods to Marshall because Henry insolvency capabilities remain

higher than expected. As seen in Romalpa Clause, the clause main intention is to keep the title to

the goods for sale with the seller under the buyer fulfills their required obligations, including

payment of purchase price. Rihanna may fail to supply the goods to Marshall because Marshal

financial problems, and if in any case, she sells the goods, then she can reclaim the goods from

the insolvency administrator because the goods belonged to Rihanna, not Marshall. Romalpa

clause act as a security giving overwhelming support to Rihanna over Marshall incapability not

to pay the goods with both instances standing on their favors.

Security Interest

Rihanna after giving the goods to Marshall, then due to financial capabilities he is

unable to pay, then Rihanna under security interest he is in a position to collect the goods when

Henry will not be in a position to. Showing that the property secures the property right of

Rihanna whose right to credit a debt. When Rihanna gives the goods to Henry, then she

technically borrows known as a creditor who is also referred to as secured party. Through this

security, Rihanna will be having secured transactions making her a party with a legal capability

of taking possession of collateral in the event of the debtor's failure to pay. Rihanna needs to

have the best steps to ensure security interest. However, for Rihanna to have a secured party to

more fully ensure its legal rights if other parties are asserting an interest in the same piece of

collateral.

Attachment

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In any case, Rihanna sells the goods to Marshal, and He fails to pay in advance then she

will need to have an attachment that will help her to apprehending, or seizing persons or

property, under a writ. When presented to a legal court and a judicial order by bringing the same

into the custody of the law, used either for the purpose of bringing a person before the court, of

acquiring jurisdiction over the property seized, to compel an appearance in this case the person

will be forced to pay the goods within the stipulated time. Attachment will act as a security for

Rihanna, helping her to know what precisely the necessary steps needed to get her compensation

when the goods are delivered. Domestic attachment will be accorded to Marshall since they

operate within the same jurisdiction.

Perfection

This are extra steps taken when security interest is put into consideration, enabling the

taking of effects on the third parties tied during transaction curbing defaults by the grantees

during transaction. On the attachments are security interest steps linking the goods under

transaction to security interest. For instance, perfection has three kinds of principle underlying it.

This interest includes possession of the collateral, statutory registration or filing, and notice to

the debtor or a fund holder. Due to Marshall financial position not to pay goods and services and

security interest is taken care of, then Rihanna will be forced to go a step higher to use perfection

helping her to recover her resources when there's a financial loss. Rihanna needs to have the best

steps to ensure security interest. However, for Rihanna to have a secured party to more fully

ensure its legal rights if other parties are asserting an interest in the same piece of collateral.

Personal property security Register

COMMERCIAL LAW

This is an act which will help Rihanna to manage credit risk from Marshall. Personal

property security register will help Rihanna since she is involved in many things. Apart from

planting grapes, she also runs a winery. This security interest will always secures payments of an

obligation with no regard being made to the form of transaction with the title to the property. If

Rihanna has an interest in the transaction to ensure it receives security in return to the goods it

has provided. For the interest to be taken care of over Rihanna property, then a secured party

must register a security of interest on the property. This indicates that secured goods such as

Rihanna will enable sold without payment, helping her to be the secured party may trace the

identifiable proceeds, or the money or any other benefit received under the sale.

JAMILLA CASE STUDY

Jamilla, who is specialized into a chef, bought Kereru Flavored food from Michael and failed to

supplier in good time. The issue here is Michael entering into a contract on goods he doesn't

possess and knows very well that Kereru are protected under the wildlife act 1953. Michael gives

out wrong information on the goods he purports that he is in possession and will deliver in time.

The rule, according to the above case study, an illegal contract entered concerning the defined

subject section 5 of this Act.Michael terms it is an illegal contract means any contract going

against any law like in this case the 1953 wildlife act that is illegal at law and at equity whether

the illegality arises from the creation or performance of the contract, and includes contract which

contains an illegal provision, whether that provision is severable or not as illegal contract

defined,” according to Illegal Contract 1970.

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Notwithstanding any rule of law or equity to the contrary, but subject to the provisions of this

Act and of any other enactment, every illegal contract shall be of no effect and no person shall

become entitled to any property under a disposition made by or according to any such

agreement:

" Provided that nothing in this section shall invalidate any disposition of property by a party to an

illegal contract for valuable consideration and also any disposition of property made by or

through a person who became entitled to the property under a disposition to which paragraph.

Applied if the person to whom the disposition was made was not a party to the illegal contract

and had not at the time of the disposition notice that the property was the subject of, or the whole

or part of the consideration for, an illegal contract and otherwise Acted in good faith".

The application of this case is that since Jamiila entered into contract without full information on

the goods which were supposed to be delivered. Then through the law, she is supposed to seek

court justice for full compensation of the total number of orders she made. The sh. $50000

should be given in whole by Michael since Michael had complete information on the situation of

Kereru pertaining Wildlife act 1953.

QUESTION 2

Jamilla does a quick transaction of acquiring a space from Steve. She realized that the house

can't be used unless it is renovated. The issue here is that Steve had the full information of the

house before sealing it and with proper knowledge, he was to give Jamilla particular direction on

the property. Since Jamilla wanted enough space, she moved in without prior arrangement;

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hence, she must seek further finances for the renovation. “According to the rule of contractual

mistakes Act of 1977, Jamilla can seek court redress and be compensated. Through this contract,

a court may I the course of any proceeding or on application made for the purpose to grant relief

under the section 7 of the same Act to any part of the contract. Jamilla entered into a contract

because of decision influenced by Steve even though the space was material to him and the

existence of the mistake was known to Steve

(iii)" and at least Jamilla was proven to be influenced by Steve even though Steve didn't know

on his illegal morphine which was going to affect his client. The influence in their respective

decisions to enter into the contract by a different mistake about the same matter of fact or of law,

and the mistake resulted at the time of the contract and the end of contract," according to Illegal

Contract 1970

This application shows that Steve needs to compensate Jamilla on the damages she accrued and

on the extra charges of Hundred Thousand Dollars, which may have occurred. The court will be

in a position to seek further charges for the illegal activities which was happening in Steve

house. In conclusion, Steve needs to compensate Jamilla since the damages caused was as a

result of Steve ignorance.

Question 3

The issue here is that Jamilla buys goods in good faith and Finn did not have proper courier

system for delivery, forcing Jamilla to seek for her goods. The goods are ready, but one is

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missing yet. Jamilla will or can opt to take part of the goods available and seek for compensation

of the other goods financial at the current rate available when the contract was signed. The rule

of this case study is that both Jamilla and Fin were in a capacity to buy and sell even though they

didn't have full information on the goods and services provided. With the law concerning

capacity to contact and to transfer and acquire property whereas the necessary are sold and

delivered to a person who reason in mental capacity. The sales were made on agreement without

any person having information on the other parties incapability to produce and deliver the goods

in time. The party will be allowed to transfer the property in goods to the buyer for a money

consideration. The application part since Finn was not to enter into a contract knowing very well

his incapability of then as he is declared bankrupt he has to fully compensate Jamilla the full

amount of extra shirts which were not delivered in time. In conclusion, Finn is found capable and

needs to compensate Jamilla on the damages causes.

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References

Brown v. Maryland, 25 U.S. 419, 6 L. Ed. 678, 5 S. Ct. 1065 (1827).

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