Bussiness law
Question:
Nita owns a bakery at the Kelana Mall. Nita needed a new oven to meet the needs of her booming business. Nita decided to buy a new industrial oven from Kitchen Masters, a company which imports and supplies ovens Nita told the salesman that she will need an oven that is capable of reaching a temperature of at least 400 degrees Celsius. Kitchen Master’s salesman assured her that their latest model of oven is able to reach 400 degrees Celsius. Nita agrees to buy the oven from them and Kitchen Master’s salesman set up the oven at Nita’s bakery. After putting the first batch of bread and setting it at 400 degrees Celsius for 30 minutes, the bread was still uncooked. Apparently the oven supplied by Kitchen Master’s did not meet the temperature required by Nita. Advise Nita whether there is a breach of the condition of the contract of sale and the remedies available to her, if any.
Answer:
Introduction - Merchantable quality generally means the goods sold are fit for the particular use to which they were sold. To be applicable the buyer bought goods based on description, the seller is a person who deals in such good and the buyer has not been given the opportunity to examine the goods.
Identify the issue – The issue is whether Nita has right to take action to Kelana Mall?
Provide the law – According to Sec 16 (b) Sales of Goods Act 1957 where goods are bought by description from a seller who deals in such goods.
Application - In Nita case, she has been informed by the salesman that the oven from Kitchen Masters is suitable for her bakery. Nita bought the goods base on description, the seller is a person who deals in such good and assumes that Nita has not been given the opportunity to examine the oven.
Similar case – Wilson v. Ricket, Cockerall & Co, there was a contract for sale of coalite but, unfortunately, what was supplied was not merely coalite. Added to it was an explosive substance which detonated when the coalite was put in a fire.
Nita owns a bakery at the Kelana Mall. Nita needed a new oven to meet the needs of her booming business. Nita decided to buy a new industrial oven from Kitchen Masters, a company which imports and supplies ovens Nita told the salesman that she will need an oven that is capable of reaching a temperature of at least 400 degrees Celsius. Kitchen Master’s salesman assured her that their latest model of oven is able to reach 400 degrees Celsius. Nita agrees to buy the oven from them and Kitchen Master’s salesman set up the oven at Nita’s bakery. After putting the first batch of bread and setting it at 400 degrees Celsius for 30 minutes, the bread was still uncooked. Apparently the oven supplied by Kitchen Master’s did not meet the temperature required by Nita. Advise Nita whether there is a breach of the condition of the contract of sale and the remedies available to her, if any.
Answer:
Introduction - Merchantable quality generally means the goods sold are fit for the particular use to which they were sold. To be applicable the buyer bought goods based on description, the seller is a person who deals in such good and the buyer has not been given the opportunity to examine the goods.
Identify the issue – The issue is whether Nita has right to take action to Kelana Mall?
Provide the law – According to Sec 16 (b) Sales of Goods Act 1957 where goods are bought by description from a seller who deals in such goods.
Application - In Nita case, she has been informed by the salesman that the oven from Kitchen Masters is suitable for her bakery. Nita bought the goods base on description, the seller is a person who deals in such good and assumes that Nita has not been given the opportunity to examine the oven.
Similar case – Wilson v. Ricket, Cockerall & Co, there was a contract for sale of coalite but, unfortunately, what was supplied was not merely coalite. Added to it was an explosive substance which detonated when the coalite was put in a fire.