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Business Law - Sophia's Social Life Issue While Working

Essay by   •  August 20, 2011  •  Case Study  •  925 Words (4 Pages)  •  1,958 Views

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In this case Sophia received a free sample of bath salts in her letterbox from Warm Glow Bath Products Ltd. After following the instructions on the packet, Sophia immersed herself. While in the bath Sophia noticed her skin tingling. When she emerged she found that her face and other parts of her body had become very red. The redness continued and spread and an itch developed which was very troublesome and lasted for six months.

The main issue in this case is that during this period Sophia's social life was negatively affected and she was unable to play her favourite sport of Netball. Also while off work for three months, Sophia failed to share in a lotto win by the office syndicate of which she was usually a member. Due to this Sophia now wants to sue Warm Glow Bath Products Ltd.

Sophia can sue Warm Bath Products Ltd. in contract. A contract is an agreement between two or more parties, which creates rights and obligations that can be enforced by law. Three essential elements need to be present, for a valid contract to be formed. First, the parties must intend to create legal relations; second, the parties need to reach an agreement; and finally, their promises must be supported by consideration. In deciding whether the parties to an agreement intend that agreement to be legally binding there are numerous presumptions which are applied by courts. It is presumed that parties intend to create legal relations in commercial or business circumstances. Consideration is the 'price' that one party pays for the promise of the other party. Consideration can be in the form of a money price or a service rendered. Consideration may be executed (provided at the time the contract was made) or executory (provided at some time after the contract is made). Consideration cannot be past.

Promissory estopel...

The terms of a contract need not be expressed they can also be implied. Where a term in a contract is broken, it will, apart from if there is any exclusion clause, probably give rise to a claim for damages for breach of the relevant contract. The promisor will be strictly liable in the law of contract for failure to perform what they promised to perform, unless their promise is impossible to perform or is illegal. In order for the contract to remain valid all terms and conditions contained in the contract need to be precisely followed.

There are many different forms of breach of contract. There could be a complete breach, or in other situations, a person might just neglect to do a small part of the contract. Clauses that decide what will happen if there is a breach of contract are legal and will bind both parties. Another significant aspect is that each party has a responsibility to attempt to alleviate their loses. That means that even if one party is not fulfilling their part of the contract, the other party should still try to keep their loses at a minimum. This can be done



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