Questions On The Legal Issue

Decent Essays

LST5CCL Assignment Cover Sheet Student Name: Ngoc Ha Do Student Number: 17262879 Name of Tutor: Tutorial Day and Time: Monday at 4pm Date of Submission: 27/04/2015 Question 1: The legal issue involved in this case is whether a valid contract is formed between Anna and Barry 's Car Sales Pty Ltd (the company). To determine the validity of a contract, four essential elements must exist in the agreement: intention to create legal relations, a valid offer and acceptance; consideration and certainty of terms. The first element to consider is the intention to be legally bound between parties. The fact shows that Anna needed to buy a car which the company wanted to sell. Furthermore, they already made and signed in the contract. …show more content…

Question 2A: The issue is whether Anna has been deceived with the true condition of the car by the Company’s fraudulent misrepresentation. Under the common law, fraudulent misrepresentation is made by one party to another; the statement is made with a lack of belief in its truth; the intention of inducing the other party to enter into the contract; the statement results in damage to the innocent party. First and second element, the statement made by the representor (the company) to the representee (Anna) lacks their belief in its truth. It includes false statement of existing fact, dishonest statement of opinion and a statement that is a half-truth. False statement of existing fact is a discrepancy between the facts as proven and the statements made by the representor. The figure showed in the odometer (75,000 km) is far different from what is recorded in the service details (175,000 km). It shows that the company deliberately wound the odometer back to create false impression to the buyer that the car was not much used. In perspective of Anna, the dealer made a dishonest statement of opinion when he praised the car as "the best one of the lot". He should know that the fleet car that already ran for 175,000 km within 3 years couldn 't be in the best

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