Essay Example on Contract between Brendan and Gary’s Autos Rule

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A Issue It is first crucial to consider whether or not there has been a breach of a relevant term of the contract between Brendan and Gary’s Autos Rule There is a term in all goods contracts that goods will be of satisfactory quality The main test to determine satisfactory quality means goods must meet the standard that a reasonable person would consider satisfactory The courts should apply this test taking into account of any description of the goods the price and all the other circumstances Application The basic question is whether the goods are substandard taking into account all factors The description and price can either lower or raise expectations for example in Rogers v Parish the court said that the description Range Rover and the high price paid both generate high expectations in terms of performance and reliability Here Brendan has paid what seems to be high price of 20 000 for his car It must also be considered any public statement about the specific characteristics of the goods made by the trader the producer or any representative of the trader or producer in particular in advertising or in labelling We are told that the car has reliability and performance that will make you feel epic which can be argued enticed Brendan into the purchase 



The seller is responsible under the CRA so any public statement leaves a scope of blame for the consumer Conclusion If any fault was specifically drawn to Brendan s attention before the contract was made or if he examined the goods before the contract was made and it had any defects which that examination revealed then the satisfactory quality term would be ignored However due to no indication of this it is likely that the car Brendan purchased would not be of satisfactory quality i Issue Now that it has been established that Brendan s car was not of satisfactory quality the first issue is whether or not he can claim a full refund Rule If there is a breach of the quality term or of the fitness term the consumer has a right to reject the goods terminate the contract and receive a refund The consumer must normally exercise the right to reject within 30 days of the first day after both the ownership has passed and the goods have been delivered Application We are told that Brendan goes to Gary's Autos the next day after the breakdown Rule To exercise the right to reject and obtain a refund a consumer must indicate to the trader that he is rejecting the goods and treating the contract as at an end From the time when the right is exercised the trader has a duty to give the consumer a refund Application Brendan indicates to Gary the very next day that he would like a refund after the car s breakdown but Gary refuses stating this is not company policy Conclusion As there is a breach of the quality term of Brendan s car he is entitled to a full refund ii Issue Brendan has a right to reject but he is not bound to do so 



He could choose to do nothing or to exercise another remedy as in this case he demands a replacement car Rule The trader can refuse repair or replacement if it is either impossible or disproportionate in relation to other remedies The disproportionality test states either remedies are disproportionate compared to the other if it imposes costs on the trader which compared to those imposed by the other are unreasonable taking into account the value which the goods would have if they conformed to the contract the significance of the lack of conformity and whether the other remedy could be effected without significant inconvenience to the consumer This means the consumer s damage is cured in some way at least Application It was stated that the repairs would total to around 500 whilst Gary has said that the car would have devalued by around 1000 2000 Applying the disproportionality test it may be argued that this difference is not major in relation to what Brendan paid for the car and so he may be entitled to a replacement Even if Gary s Autos argues about the economic aspect it also has to be considered the effect the new remedy may have on Brendan For example the time period for repair is not stated and so Brendan may not be without a source of transport for some time Conclusion If Gary s Autos refuses to comply with sourcing a replacement vehicle then this might ultimately only be able to be enforced by an order of specific performance Section 58 displays how the court has power to enforce specific performance particularly in cases such as this where it is not it is not impossible or disproportionate to replace Therefore this can display how Brendan may be successful in demanding a replacement car


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