Foundation of Business Law

988 Words4 Pages
Charlie is going to rescind the contract. He demands return of his money and compensation for the loss of commission on several high profile sales of his business. He wants to rescind the contract because the package of software recommend by Carmine was obsolete, despite Carmine’s assurances. This problem is concerned with the contents of the contract which is term in the contract, the misrepresentation and unconscionable conduct. Charlie will claim that Carmine verbal assurances about the condition of the package of the software which recommended by Carmine was unable to utilise the Land Titles Office’s electronic lodgement of documents. Carmine will refer to the written contract which contains a clause that there is no warranty…show more content…
This is an area difficultly for Charlie because the written contract does not record the oral promissory made by Carmine. Charlie asked Carmine that is the software suitable for his company use and Carmine has assured Charlie that it is suitable for his company but this is not written in the contract. Charlie has signed the contract without noticing that parol was not recorded in the written contract. If he sign the contract that means he has confirm the contract. Charlie would succeed in an action for misrepresentation. Carmine has made a statement of fact about the package of software (‘this package is widely used by several of well-established real agencies in South Australia wand was more than adequate for a small agency’) that is false and which has induced Charlie to signed and entered the contract. As a result of Carmine misrepresentation Charlie has suffered loss and damage of his company. It is fraudulent misrepresentation because Carmine knew that the package of software had already obsolete and had lie to make the sale. Charlie can rescind the contract and claim loss in the tort of deceit: Derry v Peek- Graw 12.7.2). Charlie can rescind the contract for unconscionable conduct. Carmine has destroyed the inequality in bargaining power that exists between him and Charlie. He is in much stronger position as a software dealer compared to Charlie who is in the weaker position as he just has basic
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