Question

In: Finance

Sam buys a bag of charcoal from Utama Jaya so that his family can enjoy themselves...

Sam buys a bag of charcoal from Utama Jaya so that his family can enjoy themselves sitting around the fireplace in their flat. Unfortunately, the bag of charcoal contained an explosive device which exploded when Sam lit the fire. Sam was badly injured. Advise Sam.

Solutions

Expert Solution

The terms of a contract of sale of goods are based on section 12 of the Sale of GoodsAct and can be split into two parts; condition and warranty. Condition is thefundamental term of the contract, and the breach of the condition gives the injuredparty the right to reject the contract. Warranty refers to stipulation collateral to themain purpose of the contract, the breach of which gives the injured party the right to claim for damages but not to reject the goods and treat the contract as repudiated.

Here the imjured party is Sam. so he will get the right to claim for damages but not to reject the goods and treat the contract as repudiated.

Warranty

In contract law, a warranty is a promise which is not a condition of the contract or an innominate term: it is a term "not going to the root of the contract",[1] and (2) which only entitles the innocent party to damages if it is breached: i.e. the warranty is not true or the defaulting party does not perform the contract in accordance with the terms of the warranty. A warranty is not a guarantee. It is a mere promise. It may be enforced if it is breached by an award for the legal remedy of damages.

A warranty is a term of a contract. Depending on the terms of the contract, a product warranty may cover a product such that a manufacturer provides a warranty to a consumer with which the manufacturer has no direct contractual relationship.

A warranty may be express or implied. An express warranty is expressly stated (typically, written); whether or not a term will be implied into a contract depends on the particular contract law of the country in question. Warranties may also state that a particular fact is true at one point in time or that the fact will continue into the future (a "continuing warranty").


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