Question

•While visiting a car yard, Ying spotted a yellow VW that she fell in love with. Rob, the owner, said the car had only “one owner” and was “well looked after”. Ying offered Rob $18,000 for the car, including GST. Rob said he could only accept $18,000 plus GST. Ying agreed. Answer the following questions:

(a) What are the express terms of this contract?

(b) what implied terms might exist in this contract?

(c) can Ying sue Rob if she later found out that the car was not roadworthy?

(d) Ying later found out that the car has 3 previous owners who did not look after the car properly. What can Ying do about this?

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Answer 1

ANSWER:

1) The express terms of this contract is that the Ying’s initially offered $18000 including the GST that was declined by Rob because he wanted to exclude GST on top of the offer

2) The implied terms in this contract is that the both parties agreed on the price offered of $18000 plus GST

3) Yes, Ying can sue Rob in case later found out that the car was not roadworthy. The reason is that under ACL sale of goods, legislation states certain terms / promises by the seller into every contract for the good's sale. These terms are for the benefit of the buyer and in consumer contracts majority of such promises cannot be excluded

4) Ying can sue Rob if the car does not comply with description under which they are sold and are unfit for the purpose for which they are sold