Question

QUESTIONS Joan is setting up a small business mowing lawns and maintaining domestic gardens. Her business is called ‘Prune & Bloom’. Joan needs a sturdy lawnmower that will withstand frequent use, so she goes to her local Nailed It Hardware store. Joan is assisted by Effah. Joan explains her needs, and Effah shows her the MowMaster 3000, a new brand of lawnmower. “The MowMaster 3000 is the one for you. It’s amazing! The blades can cut through anything, and they’ll never get blunt or bent out of shape. I think you’ll get through your jobs in no time with this one, and be able to fit more clients into the week. It was designed in Germany and made from the best quality parts.” Joan checks out the MowMaster 3000, and is convinced by Effah’s comments. She decides to purchase one. 1. Are any of Effah’s statements about the MowMaster 3000 part of the sale contract? (5 marks) After only 3 days of using her new MowMaster 3000, Joan notices that it is not cutting as well. When she inspects the blades she finds that they are already worn down and blunted. When she calls the Nailed It Hardware store to complain, she is told, “We’re not responsible for any problems like that. Didn’t you see the sign at the counter?” At the sales counter where Joan had paid for her MowMaster 3000, there was a small sign: Nailed It Hardware is not liable for any breach of warranty or condition in any sale of its products. When Joan was at the counter, the sign had been partially hidden by a group of pot plants being held aside for another customer to collect. 2. Does the sign apply to Joan’s sale contract with Nailed It Hardware? (5 marks) Joan receives a phone call from a potential new client, Reginald. Reginald explains that due to his worsening arthritis he’s no longer able to tend to his precious orchid collection. He is seeking Joan’s help to come and tend to the orchids in his greenhouse each week. After their phone conversation, where Joan requested more details, Reginald emails Joan explaining the specific rare types of orchid he has, and how they require special equipment and fertiliser for their maintenance. Joan is concerned about the expenses and risks involved, and wants to ensure that Reginald sticks with the arrangement for an extended period. She prepares a custom agreement and emails a copy to Reginald, asking him to sign and return it. A few days later, when she hasn’t received any response from Reginald, Joan calls him. “Oh yes, I saw the email,” says Reginald. “I’m just waiting for my nephew to come around and help me with the printer and scanner here, to send it back to you.” “So you’re definitely going ahead? Shall I get on with preparations to start caring for your orchids?” Joan asks. Reginald says yes. Joan goes ahead and orders the special gloves, fertiliser and other equipment she’ll need for the job. In total, it costs her $870. After another 4 days, Joan still hasn’t received a signed copy of the agreement from Reginald. She calls him and leaves a voicemail, asking about the contract and when she can start tending to the orchids. The next day Joan receives an email from Reginald: “So sorry Joan. My nephew has offered to help me with my orchids on his weekly visits. So I won’t be needing your services after all!” 3. Can Joan argue promissory estoppel against Reginald? (6 marks) After her experience with Reginald, Joan is feeling cautious about clients backing out of their promises. She decides to print a set of stickers to provide to customers. The stickers state: “Cancellation of any future appointment must be communicated in writing at least one week in advance, otherwise the fee for that appointment is payable in full.” Joan places a sticker on the back of each receipt in her receipt book. She usually fills out receipts for each job and provides them to her clients after each visit. 4. Is the statement on the sticker binding on future clients? (4 marks)

Answer 1

1. Are any of Effah’s statements about the MowMaster 3000 part of the sale contract?

A sales contract must consist of:

• Least two parties: buyer and seller. [Condition fulfilled]
• Subject must be good. [Condition fulfilled]
• Transfer of ownership. [Condition fulfilled]
• Price: [Condition fulfilled]
• Free consent of both the parties. [Condition fulfilled]
• Offering and acceptance undersigned by the parties. [Condition fulfilled]

Hence Effah’s statement about the MowMaster 3000 and Joan acceptance of MowMaster 3000 is clearly a sales contract.

2. Does the sign apply to Joan’s sale contract with Nailed It Hardware?

Yes, this sign applies to Joan’s sale contract. When the parties sign in the agreement it turns out to become a valid contract. So, its duty of every signing authority to go through the terms and conditions prior before signing.

3. Can Joan argue promissory estoppel against Reginald?

Joan has agreement sent by Reginald without undersigned, further, she has a copy of the agreement which she customized and send, which is also not undersigned. Though she made a conversation and got his acceptance, there is no physical evidence such as audio recording of the conversation. So, if Joan argues promissory estoppel against Reginal the case judgment wouldn’t be favourable mostly for Joan.

4. Is the statement on the sticker binding on future clients?

Yes, the statement on the sticker would be valid provided if it is undersigned apart from customer undersigning the contract. Because, if it is stickered, in case there comes a situation, Joan can claim that the particular statement is stickered within the agreement and the statement is undersigned by the customer with his full awareness, further this action would be evidence that sticker is not stickered after the undersign is obtained from the customer.