(a) Prepare the Document
A SALE AGREEMENT
1. Mr Kenya of ID no 333333, residing in Nairobi Area male of sound mind herein referred to as the buyer, contracts with Mr Patel of ID no 99999, residing in Nairobi area, male sound mind herein referred to as the seller.
2. The buyer contracts to buy the model vehicle V 2007 from the seller as a consideration of 15,000,000 (fifteen million Kenya shillings only)
3. The seller hereby warrants to the buyer that the vehicle v 20077 model is fast, durable, new, modern and has a low fuel consumption rate.
4. The buyer relies on the sellers skill and judgement as to the quality and fitness for purpose of the 2007 model vehicle V
5. Delivery of the vehicle model V 2007 shall be done on 30th June 2008 at Nairobi Medical Plaza which is the buyers office
6. The requirements as to the delivery date, fast nature, durability, low fuel consumption rate and modern and new qualities of the vehicle are conditions.
7. If a condition is breached the buyer is free to treat the contract as repudiated
8. If a dispute should arise it should first be directed to arbitration as per the Arbitration Act
9. This contract is governed by the Sale of Goods Act
10. Time is of the essence
11. Execution clause………………………………………
(b) Legal Opinions
- The failure to deliver the car on the stated date constitutes a breach of a condition or the buyer treat it as a breach of warranty and sue for damages. The Sale of Goods Act provides that when the time for delivery is not set the seller is bound to deliver them in reasonable time[1]. The delivery costs are borne by the seller[2]
-Whether 2 weeks constitutes as reasonable depends on the reason given. In a contract for sale of goods it is possible to plead force majeur (an unavoidable accident) as such the buyer in this instance may treat it as a breach of condition and repudiate the contract or treat it as a breach of warranty and claim damages
-Mr Kenya may sue for breach of warranty as he has treated the condition as a warranty. He may claim damages
-It is clear from the facts that the buyer during purchase laid emphasis on the seller’s skill and judgment as to the specifications of a car that he wanted as such when a buyer lays reliance on a seller’s skill and judgement then the final delivered product must meet this criteria. As such the vehicle did not meet the requisite specifications as specified by the buyer. It was not fast, durable, low consumption and unstable on the road. The buyer may treat this as a breach of condition and repudiate the contract.
-Mr Patel may claim that goods once sold can-not be refunded, that is company policy that may be interpreted into the contract. However, in law Mr Patel is liable, he entered into a contract and did not deliver what was required of him. The contract stated that he was to deliver a fast, durable, stable and low consumption vehicle he did not do so as such; he must refund the money and take the car or upgrade the car to standard based on whether the seller treats the breach as a breach of warranty or condition.
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