MODULE: BUSINESS LAW
LECTURER: MR MAHADEVAN LUKSHUMAYEH
Question: In early 2013, Beauty property developer negotiated with Stylish over a new house in the eastern sector of Singapore. Beauty and Stylish had various meetings about the cost and finish of the house. At one of their meetings, Stylish asked Beauty whether the price of the house included curtains, blinds and window coverings. Beauty explained that all window coverings were provided for in the contract. Several weeks later Stylish agreed to purchase the proposed house and signed a written contract. The contract however contained the following clause: Clause 3 – The contract price of the house excludes all window coverings. The provision of curtains, blinds or other window coverings is the responsibility of the purchaser and will not be provided pursuant to this contract. The house was completed in late 2013. Stylish was upset when after taking possession of the keys he realised that blinds, curtains and other window coverings were not provided in the new house. Advice Stylish of his contractual rights in relation to the window coverings Including a discussion of appropriate remedies.
This case is a valid contract because the law does not require contracts to be written in the text for it to be legal. The contract can be spoken, written, or partly oral and partly written or implied behavior. Therefore, Stylish can sue Beauty for the contract. In this case, Beauty has not complied with the contract as not equip curtains, blinds and window coverings as promised under contract with Stylish, as required in the pre-contractual statement was made by Beauty. The pre-contractual statement is part of the currency of the contract and it is made before signing the contract. Pre-contractual statement can push the other party to sign the contract. If Beauty does not make a statement before, Stylish probably will not sign a contract or will require a few changes in contract terms. This is a clear case of misrepresentation, as an untrue statement of fact was made by one party to a contract to the other, at or before the time the contract was made, which induces the other party to enter the contract. Factors misrepresentation helps us point out the existence of a misrepresentation and is applicable in this case: First, a misrepresentation is a statement of fact; it is not a statement of law, intention, or inflated opinion of an adviser. Second, the statement must be false.
Third, a party to the contract other reports, that on one side the other confusing. Finally, the representative shall be caused to the other party to the contract. It may be a case of Fraudulent Misrepresentation; Beauty knew and deliberately makes a false statement. So in this case, Beauty must take full responsibility for the false claim that. Then Stylish may cancel the contract to reclaim their rights and sue Beauty for the costs under the tort of deceit. Stylish can claim expenses due him as a result of the Misrepresentation of Beauty and go ahead with the contract. The cost is a form of financial compensation and measures to overcome the most common laws available to the plaintiff's rights. Stylish may request additional curtains, blinds and window coverings in the home as a form of compensation for the fraudulent acts of Beauty, the Stylish standing to receive from Beauty as well. If Beauty while making false claims without a reasonable basis for the statement is true, then it will be a case of Negligence Misunderstanding. Accordingly, Beauty not sure about the report and continue to do it anyway. In such a situation, the contract cancellation is a drastic step. Then Stylish should claim compensation from the negligent acts of Beauty. But Stylish is legally allowed to cancel the contract and make it effective. Beauty will become more alert and issued a statement before the contract, including the statement of curtains, blinds and window...
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