Question

In: Economics

You are in the train station waiting for your train to arrive. You see a vending machine from where you can buy snacks and chips for $3.50.

 

You are in the train station waiting for your train to arrive. You see a vending machine from where you can buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZ Vendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet of chips. However, when you open the packet of chips, you find bits of plastic inside and you don’t want to eat the chips. You want your money back.

Required:

With reference to the essential elements for the formation of a contract, explain:

a) Did you enter into a contract in this scenario?

b) If your answer is yes, with whom did you enter a contract?

Solutions

Expert Solution

a) The question here is did you enter into the contract in the above scenario.

  • Yes obviously i do.
  • The contract here is very much genuine and valid.
  • This is because a machine in public place offering it holds some eatable(any property) and you need to pay money for it. Once the person who inserted the money in the machine is accepted the offer, the person is eligible to have the item which indeed should have the things defined in the offer.
  • Here in our case the item is non eatable and different from which it is said in the machine offer.

b)

  • The contract will be entered by the buyer with the company of the item. Here in our case its chips.
  • The contract won't be between the vending machine and the buyer since the vending machine is just an organization that sells machine to the companies.
  • The issue is with the chips company since they sold chips containing damage-causing material and poor quality food.

 


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