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Question if business law and i want full explanation from the side of defense and plaintiffs..Please.

This question is of Business Law...A case of comtact and remedies ..I want a 1 page explaintion from the side of defense.

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Answer #1

A contract can be considered valid if it has the following components:

  • Offer
  • Acceptance
  • Intention to create legal relationship between the involved parties
  • Consideration
  • Competency and capacity

If the contract is valid, then it can be legally enforced.

In the given case, Kenja had made an offer to buy a used car for $23500 provided the dealer got the water pump repaired by himself. Kenja knew about the condition of the car and still showed interest in buying the same. The dealer had not hid anything about the car from Kenja. He had even offered a test drive to her but Kenja could not do the same as there was a coolant leak in the water pump of the car’s engine. However, she could have taken a test drive, the next day. But again, Kenja did not consider it important and hence did not avail it.

This case also talks about product liability. Product liability is the mechanism which puts the onus and total responsibility of a defective product bought by a consumer, on the manufacturer or the seller of the product. The basic expectations of the consumer must be met by the product of the manufacturer or seller. Due to this mechanism, the seller or the manufacturer of the product will be held liable for any kind of injury or accident caused by the product, to the consumer.

Three major types of product liability are:

  • Breach of warranty: Usually a product is sold with a warranty by the seller or the manufacturer that the product will function well for a stipulated time period. If the product fails to do the same, then it is considered to be a breach of warranty.
  • Negligence: If the product is not meeting the standard performance expectations of the consumers due to some negligence caused during its manufacturing, then the manufacturer or seller of the product can be sued by the consumer under the tort of negligence.
  • Strict liability: In the case of any kind of product performance failure, the consumer can raise a strict liability tort. All the stakeholders involved in the production of the product, will be held responsible and can be sued.

However, this case is entirely different. The product under consideration is a used good. When Kenja had agreed to buy the sedan, she had signed a written agreement with the automobile dealer. In the agreement it was clearly stated that the used car will not have any warranty from the dealer. The dealer had agreed to make certain repairs and he had done the same, as was promised. Both the parties were required to abide by the terms and conditions stated in the contract. It was expressly stated and agreed that the used goods are not warranted by the dealer. Kenja was anxious to take the car with her, the next day for a car rally, ignoring the water pump leakage problem. This shows the negligence on part of Kenja. The dealer had cautioned her about the drive conditions but Kenja did not pay heed to it and ultimately the engine of the car got damaged.

In my views, Kenja’s claim that the engine was damaged and she wanted her money back is invalid. The dealer had never promised about effective performance of the used car’s parts. Moreover dealer had cautioned her not to drive the car too hard. The dealer was also ready to replace or repair the water pump, but Kenja procrastinated the same for a later date as she was quite eager to participate in a car rally. Hence dealer can’t be blamed for the non-performance of the car. This is not a case of product liability or breach of warranty. Instead a negligence tort can be filed against Kenja as she showed interest to buy and drive the damaged car and postponed the water pump repairing to a later date. Hence the claims of Kenja stand invalid.

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