Case on Privity of Contract

Topics: Contract, Common law, Breach of contract Pages: 14 (3930 words) Published: March 18, 2013

Capacity and Privity of Contract

LGST101 Business Law Professor George Shenoy

Group  Members:   Ue  Mu  En,  Esther   Goh  Yue  Lin,  Sylvia   Fong  Li  Chu   Sabina  Sun  Chao   Ng  Shi  Ya   1    

Content Page 1. Case Summary 2. Can Brad sue Jennifer? 2.1 2.2 2.3 2.4 Validity of Contract Breach of Contract Brad cannot sue Jennifer Brad can sue Jennifer

3. Can Angelina sue Jennifer? 3.1 3.2 Angelina cannot sue Jennifer Angelina can sue Jennifer 3.2.1 3.2.2 3.2.3 Contract (Rights of Third Parties) Act Tort of Negligence Rule of Agency

4. Can Brad sue Jennifer on 4.1 Action of Promisee on behalf of Third Party (Albazero Exception)

5. Conclusion


1. C ase Summary This case involves 3 characters, namely, Jennifer, Brad and Angelina. Jennifer is a professional string instrument dealer with special expertise in repairing and modifying string instruments. She is known to be the best recognized luthier in Singapore. Brad and Angelina are both professional cellists with the Singapore Philharmonic Orchestra and regular clients of Jennifer. Brad decides to buy a carbon-fibre endth

century Italian Cello for needs to be

done as she is in a rush. Jennifer is not surprised since Brad deals with Jennifer nine out of ten times with regards to the repair works of their instruments. -fibre end-pin of at least 40cm long, offering to pay $2,000 for the parts and labor involved. All the instructions and the agreed fee are written down in a works order which contains certain standard terms and conditions. In addition, the works order includes two clauses, namely Clause 5 and Clause 10. Clause 5 states This contract is entered into and enforceable as between the parties who have signed the works order herein. are, our liability in damages Both Brad and Jennifer sign the works order without any other conditions apart from those stated in it. Jennifer, however, has never installed a -pin before and she does not realize that the

Superspike is wider in diameter than ordinary carbon-fibre end-pins. She negligently forces the Superspike into the housing of the base of the cello, creating a hairline crack which weakens the structural integrity of the cello but invisible to the naked eye. The Superspike also only comes in lengths of 38cm, not 40cm as Brad as requested. In a bid to raise her own profile, Angelina holds a concert at the Substation, and ticket proceeds of $750 went to paying for 3    

widens the hairline crack and splits open the base of the cello. It was impossible for Angelina to continue with the performance. She cancels the concert and refunds the audience their ticket money. repair works but she has lost all faith skills.

Brad, thinking of making up to Angelina, offers to send her precious cello to a London luthier for repair works. This cost him an additional $12,000 and $1,500 for the transportation fee involved. Brad and Angelina are both very upset with Jennifer and are thinking of suing her for breach of contract. Our group serves to advise each of them on whether they are able to sue Jennifer in contract, and if so, whether substantial damages can be claimed.

2. C an B rad sue Jennifer? 2.1 V alidity of Contract In order to ascertain whether Jennifer is liable for breach of contract, we need to first establish if the contract signed between Brad and Jennifer is valid. A contract is valid if there is the meeting of the minds manifested through offer and acceptance, consideration and intention to create legal relations, capacity of parties to contract, and parties freely consenting to the agreement. With reference to these requirements, we will analyze each requisite individually in the context of our case in question. Firstly, we shall look at what constitutes an offer. An offer consists of the following elements: Terms of Exchange, Indication of willingness to be bound, and the Offeree having the power to bind the Offeror upon acceptance of the offer. The...
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