Business Law

Topics: Tort, Tort law, Reasonable person Pages: 2 (1143 words) Published: November 3, 2014

Sale of Goods Ordinance, Cap 26 shall apply in this case given the fact that the motorcycle seller sold the second hand motorcycle to Sam as a course of business, a legally binding contractual relationship for sale of goods was established although there was no information as to whether Sam bought the motorcycle was for business or private use. Besides, the car shall be defined as goods under (s.2(1)) of the aforesaid ordinance. The motorcycle seller was in breach of the implied conditions in the sales agreement that the goods are correspond with the description (s.15) and that the goods supplied are of merchantable quality (s16). The relevant evidences are illustrated as follow: The descriptions displayed on card board on the motorcycle stated that it was a BMW with the engine capacity of 1,200cc. However, only part of the motorcycle was BMW product and part of which was from another brand of product. Also, the engine capacity was lower than the capacity stated in the description. Therefore, the identity of goods itself did not conform to the description given by the motorcycle seller. Furthermore, the motorcycle seller was obliged to sell goods in a merchantable quality and fit for purpose. However, The brakes were checked to be faulty which clearly demonstrated that the quality of the goods was defective and therefore, not fit for purpose as one of the major implied purposes of buying a motorcycle shall be driving. It was foreseeable that driving a motorcycle with faulty brakes would cause accident and potential injuries to driver and passengers. Under this circumstances, a reasonable buyer would not expect to receive such defective goods at a reasonable market price if the defect was not specifically drawn to the buyer’s (i.e. Sam) attention and there was no chance for Sam to carry out a reasonable examination before the purchase. The seller was in breach of the aforesaid implied conditions of the contract of sales of goods. Given the fact that...
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