Contract Law Case Study

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Step One: The area of law this question is concerned with is the presence of a breach of contract and remedies available for the injured parties.

Step Two:
Under the Act, there are a number of remedies provided for a breach of contract dependant on the circumstances in surrounding them. Generally they are dependant on the considered importance of a term within a contract (R. Stim, 2014). These are broken down into conditions, warranties and innominate terms.

A condition is generally a fundamental aspect of the contract, that without it, the buyer would not have had any reason to enter into the agreement. A warranty is considered to be a term of lesser importance, that if breached would not render the performance of the contract completely null and void (E.F. Hill, 2014)

In some cases, terms of a contract are capable of being breached by a measurable amount, whether it be in a minor or major way. These are known as innominate terms and are treated much in the way warranties are, in that if a breach occurs, generally only damages will be available to the injured party (Peter Sise, 2012).

In the case of the seller, there are two remedies that allow for them to seek restitution for what their losses. In circumstances where the buyer breaches fundamental elements of the contract, such as non-payment, the seller is able to sue for the price of the goods. If the buyer chooses to refuse delivery, and there is found to be no legal grounding as to why, the seller can also seek damages for the buyer’s wrongful refusal.

In the buyer/seller situation, it is often the buyer who has more remedies available to recoup their losses. Section 50 allows buyers to seek damages in the event of non-delivery, or buyers have the option u...

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... would only be granted a remedy of damages by a court because he would still be able to generate the full resale value as originally intended upon contracting.

Contract of Photographs
As outlined in the prior examination of the scenario, this particular contract does not meet the requirements to establish an international sale of goods agreement as the items can be assumed to be merely on loan to Juan for the period of his exhibition. However, this would still be considered a breach of contract due to Henrietta’s failure of performance, of which remedies such as damages are available.

Step Four:
In accordance with the Sale of Goods Act 1985 (WA), Juan should seek remedies for the contracts pertaining the sale of the woolen wall rugs and the red and white vases, dependant on his individual interpretation of whether or not conditions or warrants have been breached.