The first importance is establishing that a valid contract has been made between the two parties, Alfie and Garage

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MARIO NARGI

BUSINESS AND COMPANY LAW

LEVEL 4

20 CREDIT POINTS

MODULE LEADER : J.MARSON

HAND IN : 25th Jan 2005


Problem 1:

947 words

Alfie and the Local Garage

Intro:

Alfie needs a garage for a new clutch. For Alfie to know to take his car to this garage there must have been an invitation to treat by an advert of some sort displaying what the garage undertakes. Alfie decided to go in, he asked the garage to fix his car, an offer is on the table, the garage person accepts to fix the car and in return for the work of a new clutch, a sum of £400 is to be paid.

The first importance is establishing that a valid contract has been made between the two parties, Alfie and Garage.

These two parties have committed themselves to carry out specific terms; these are discussed when bringing the car into the garage. The garage has agreed to install a new clutch in the Jaguar XK8, and Alfie has agreed to pay the price given to him of £400. Alfie leaves the car, he has accepted the deal. It is later confirmed by paying the sum of money, even though the amount to be paid increases.

Usually when taking a car into a garage and leaving it to be repaired, a written contract is rarely, if ever drafted together. This is because the procedure is a common one and happens many times a day; it would be impractical to perform this everytime. A substitute for this however is in the form of an oral contract, which is evident in the case of Alfie and the local garage. This is legally binding, just as is a written contract. If problems arise, sometimes oral contracts are harder to prove what was said when or how, but in this case, it is straightforward that the car was being left to be fixed, the fix being a new clutch.

Legal relations have been intended as soon as the offer was accepted.

Terms:

Alfie has Express terms in the contract which are basically as follows:

1/ that upon leaving the car for repair to be carried out, a new clutch would be fitted

2/ a sum of money would be paid for the work carried out

These two terms should be adhered to.

There are terms in the contract which are not written or verbally communicated, but as a general rule, one would expect the following terms to be always applied when taking a car in for a replacement part. These Implied terms are as follows:

1/ that when requesting a replacement clutch is this instance that the correct model of clutch would be fitted appropriate to the car

Having broken down later that evening, the clutch fitted was for a different model and the car has now sustained further damage. Alfie must look to be compensated for the repair work as not only has the 2nd hand clutch which was meant to be brand new broken, but other parts of the car have been damaged as a result of this malpractice.

Appeal Grounds:

The Supply of Goods and Services Act 1982, states that where the suppliers are acting as a business (the garage) they will exercise reasonable skill and care in carrying out the service required. So, if a new clutch is fitted then you can be expected to receive a fully working clutch, correct model as well (providing all else affecting its operation are in order). The garage fixing Alfie’s car is in breach of Section 13 of this act.

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The Sales of Good Act Section 13(3), ensures to Alfie that the clutch which is to be fitted is reasonably fit for the purpose for which it is intended. It should be compatible with the model XK8 of a Jaguar. With a second hand clutch bound to have existing ‘wear and tear’, this has not been adhered to and is unacceptable.

Alfie may relate to this Act because a sum of money has changed hands for a product and he is not duly satisfied.

Similarly under Section 14(2) (3) the quality of the clutch is not durable enough as it is ...

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