Task 3 1095 Service Co service a boiler for Buildem Ltd. The contract is made on Service Co’s new
written standard terms. One term of the contract states that: ‘Neither Service Co nor any of
its employees can be liable in any way for any loss, injury or damage caused by faulty work-
manship.’ The Service Co employee who services the boiler forgets to fasten a plate securely.
This problem causes the boiler to explode. The explosion badly burns the managing director
of Buildem Ltd, completely destroys the boiler and causes extensive damage to Buildem
Ltd’s factory. Advise Buildem Ltd of their legal position.
6 Satvinder is a keen ballroom dancer and often stays at the Dance Hotel. A prominently
displayed notice at the entrance to the Dance Hotel states that: ‘All hotel guests are warned
that the management cannot be held responsible for the loss of items left in hotel rooms.’
Satvinder leaves her handbag in her room while she goes dancing. When she returns she
finds that her handbag has been stolen. A chambermaid opened Satvinder’s room but then
forgot to lock it. An opportunistic thief then slipped into the room and stole the handbag.
Advise Satvinder of her legal position. Explain the protection which the requirement of
satisfactory quality, set out in Sale of Goods Act 1979 s. 14(2), gives to buyers of goods.
Explain also the remedies available to a buyer of goods if s. 14(2) is breached.
Task 3
A friend of yours who is visiting the country from abroad is thinking of setting up a trading
company in the United Kingdom. Your friend is keen to understand English law as it relates to
contractual terms, and has asked you to draft a report explaining the following matters:
(a) How the express terms of a contract come to be included in the contract.
(b) The circumstances in which a court will imply terms into a contract.
(c) The terms which are implied into contracts of sale of goods by the Sale of Goods Act 1979.
(d) Other types of contracts into which statutes imply terms similar to those implied by the Sale
of Goods Act 1979.
(e) The terms which are implied into a contract to provide services by the Supply of Goods and
Services Act 1982.
(f ) The effect of the Unfair Contract Terms Act 1977.
(g) The effect of the Unfair Terms in Consumer Contracts Regulations 1999.
Visit http://www.mylawchamber.co.uk /macintyreessentialsfor:Access to the accompanying Pearson eText– an eBook
version linked to all of the resources below which you can
personalise with your own notes.Multiple choice questions, flashcards and practice exam questions, to test
yourself on this chapter.Use Case Navigatorto read in full some of the key cases referenced in
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