Bettini V Warranty

A contract is a legally obligatory promise or set of promises (Bagley, C. 2013). If this promise is broken, either party involved can be legally responsible and take the other party to court. There are four basic elements in the creation of a valid contract. The first consist of an agreement between the parties involved, by an presented offer and acceptance. The second states that the parties’ promises must be supported by something of worth, known as consideration. The third advises both parties must have the ability to enter into a contract. The fourth element states the contract must have a legal purpose (Bagley, C 2013).

A contract is an enforceable promise between parties. The parties to any contract must perform according to the relevant and required standards. This includes substantial performance of the services promised, complete or strict performance and personal satisfaction. Failure to perform as required is a breach, which is a compensable injury. Several defenses exist as a result of contract breach. This may include, statute of limitation, statute of frauds requirement for writing, fraud, mistake done during contract performance, lack of good capacity and unconscious ability.

* Terms allowing parties to vary the contract price known as a price variation clause.

This case illustrates the presence of conditions precedent, implied conditions, substantial performance, and breach of contract (material).

There are four remedies for breach of contract under UCC Article 2. Categorized as remedies of law; the first is compensatory damages, which cover direct losses and costs. Compensatory damages are an attempt to put the non-breaching party in the same position it would have been had they not suffered the breach. Second are consequential damages, which are to cover indirect and foreseeable losses not covered by compensatory damages. Third is restitution to prevent the unjust enrichment of one party in the agreement. Fourth, liquidated damages are provisions agreed to by the parties when drawing up the contract in the event of a default or breach of contract by either party (Melvin, 2011).

The term contract usually identifies many type of thing like the delivery, quantity and product or service quality. In some cases the terms can give the agencies the right to do type of things for better prices or better quality. About the problem the company can get if we didn’t put the right term and condition, like the services quality condition has to be in some level of quality to be used for long time and save some money if we buy a low quality product or services.

The terms (legal parts) of the contract can be in a variety of forms, including:

A product liability suit may also be brought under a claim of breach of warranty. A manufacturer, supplier, distributor, or retailer of a defective product may be liable where the buyer relied upon an Express warranty, or an implied warranty of merchantability, or an implied warranty of Fitness for a particular purpose.

- Warranties are a voluntary promise offered to consumers by manufacturers, service providers or sellers and are separate from the automatic protection of consumer guarantees under the Australian Consumer Law.

1.2.1. Justices Mason, Brennan, Deane, and Dawson in Khoury v. Government Insurance Office of NSW states that the discovery of a breach that is serious or of an essential term creates paths available for the innocent party in which they are ‘…confronted by two truly alternative rights … the right to avoid or terminate a contract and the right to affirm it and insist on performance…’ They continue by quoting Lord Diplock’s judgment in Kammins Ballrooms Co. Ltd. v. Zenith Investments (Torquay) Ltd , that if the plaintiff follows through on either path ‘…may lose one of [the rights] by acting "in a manner which is consistent only with his having chosen to rely on [the opposing right]"’

Contracts can be defined through promises between parties that are enforceable through law. We know that both parties agreed verbally, an oral agreement was made to hold the car for one day with a hundred-dollar deposit and Stan agreed to the terms that the deposit was refundable. Contracts can be in in two form which are written or oral. Based on the elements of contracts, many fundamentals factors are considered mandatory to form a contract that is binding on parties and are primarily outlined through the following:

The contract in English law enhances principle of freedom of contract. Indeed, the terms of the contract is freely determined and agreed by the parties. However, there are various circumstances in which additional terms may be implied into the agreement. The aim of implied terms is often to provide a supplement to a contractual agreement in the interest of making bargain more effective, to achieve fairness between the parties and to alleviate hardship.

Section 12(1) of the act state that, “A stipulation in a contract of may be a condition or a warranty” explaining that all terms and stipulations of the contract of sale are not of equal important and also of same consequences, however, some of terms are so vital to the contract that their failure to fulfil would cause breach of contract as a whole. Such terms are known as “Conditions”. Further, a term which are not of so vital importance is known as “Warranty”.

Terms are the things that make up the contract. They are the actions and inactions that the parties agree upon with each other. Without the terms there is no contract. They are divided into a few parts, there is express terms and implied terms.

Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.