Business Law Essay Example | Topics and Well Written Essays - 2000 words - 4

Business Law - Essay Example informs the seller the particular objective or need for which the goods are being requisitioned , so as to show that the buyer places trust and faith on seller’s skill or judgment, and the goods are of a description which it is in the course of the seller’s business to supply (whether he is the manufacturer or not), there is an implied condition that the supplied product will serve this purpose...† (Modification of Act for Certain Contract: Implied Terms About Quality of Terms. 1979). It could be said that the clients had relied on the skill and expertise of the vendor company, Ace Computer Ltd., but unfortunately fourteen of the twenty computers supplied turned out to be defective. In such a situation, it is possible that by applying the Warranty clause that is in force, Ace Computers would need to replace the defective computers with good ones. It needs to be argued that under such circumstances, the question of taking back the defective computers and repaying the amount does not arise, since the contractual obligation between Ace Computers Ltd. and the clients, Stevens, Wiley and Company, does not consider refund of the purchase price. The contract does not enjoin that costs of defective goods would be refunded, but it is possibly that replacements of four defective computers could be made, and also the models supplied to Damien, could be replaced. It could be argued in this case, that the contractual obligations under the agreement signed between the parties are binding, and there being no clause that specifically provides for refund of purchase price, it may be not be enforceable under law. However, when considering arguments from point of view of the clients, their main allegations would be in terms of the fact that they are not in the regular business of buying computers, but Ace Computers are in the business of providing computer business solutions for years. They have placed the order on the basis of assurances provided by Gerald, the director,