Contract Law and Consumer Protection Act

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A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. Contract law is based on the Latin phrase pacta sunt servanda (pacts must be kept). Breach of contract is a legal concept in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other partys performance.

In economics, a business is a legally recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers or other businesses, usually in an effort to generate profit.

Contractual terms

Stipulations about time

  1. Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not of the essence of a contract of sale.
  2. Whether any other stipulation as to time is or is not of the essence of the contract depends on the terms of the contract.
  3. In a contract of sale month prima facie means calendar month.

Specific performance

  1. If any action for breach of contract to deliver specific or ascertained goods the court may, if it thinks fit, on the plaintiffs application, by its judgment or decree direct that the contract shall be performed specifically, without giving the defendant the option of retaining the goods on payment of damages.
  2. The plaintiffs application may be made at any time before judgment or decree.
  3. The judgment or decree may be unconditional, or on such terms and conditions as to damages, payment of the price and otherwise as seem just to the court.
  4. The provisions of this section shall be deemed to be supplementary to, and not in derogation of, the right of specific implement in Scotland.

Modification of remedies for breach of condition in non-consumer cases

Where in the case of a contract of sale

  • the buyer would, apart from this subsection, have the right to reject goods by reason of a breach on the part of the seller of a term implied by section 13, 14 or 15 above, but
  • the breach is so slight that it would be unreasonable for him to reject them, then, if the buyer does not deal as consumer, the breach is not to be treated as a breach of condition but may be treated as a breach of warranty.
  • This section applies unless a contrary intention appears in, or is to be implied from, the contract.
  • It is for the seller to show that a breach fell within subsection (1)(b) above.
  • This section does not apply to Scotland.

The buyer must not require the seller to repair or, as the case may be, replace the goods if that remedy is

  1. impossible, or
  2. disproportionate in comparison to the other of those remedies, or
  3. disproportionate in comparison to an appropriate reduction in the purchase price.

Termination

If an agency agreement is concluded for an indefinite period (which includes a fixed term contract which continues after the end of the fixed term) either party may terminate by giving appropriate notice. The minimum period of notice required for termination of an agency contract for which no fixed period is agreed is one month for the first year of the contract, two months for the second, and three months for the third year commenced and subsequent years.

These are minimum periods which cannot be reduced by the parties. The parties are free to agree on longer periods of notice but the period of notice which the agent must give to the principal must be no longer that than which the principal must give to the agent. This notice period obligation does not apply if the contract is one for a fixed term unless the agency contract continues to be performed by both parties after the fixed period has expired.

Termination without notice

Under existing Irish law, parties to an agency contract are free to stipulate certain events or actions which will result in immediate termination of the contract without notice. If such events were not expressly stipulated, a court might find that such event would not justify termination without notice but that the partys remedy should be in damages. The Directive provides that it shall not affect the application of the law of Member States where it provides for immediate termination of agency contracts because of the failure of one party to carry out all or part of his obligations or where exceptional circumstances arise.

This provision is ambiguous and one interpretation of the wording of the Directive is to restrict the right of termination without notice to situations where Irish law provides for it. This could possibly mean that immediate termination is only possible where a court would find that an event justifies immediate termination rather than pecuniary damages. The new law is not clear. However, notwithstanding the uncertainty raised under this Article, it would be still advisable to list in a contract those matters the breach of which would be grounds for immediate termination, which have traditionally been respected by the courts here.

Advice

Dear simeon, as you have violated a rule you must be very cautious in every forward step you take. Firstly you need to apologize on your misrepresentation saying that it was printed by mistake or something like that. Hire a lawyer and he will guide you accordingly. You should also tell your customers that all of them are precious to you and you will never think of their worse. As its your call, you need to assure them that you will be recalling your product from market and all of them will go to reprocessing.

As far as the compensation is demanded, you should try to convince them and give a better, improved product of yours only if the compensation price demanded is more than your products value. You must also request to your unsatisfied and complaining customers to ask queries on your website as it is much easier to access crowd via internet. Also write an apology letter to the Department of Transport stating your mistake.

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