Business Law

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Naheed a 5 years old girl goes to her local corner shop where she is supplied a

month’s crisps quota on credit. On her way back she meets her father Mr.Arif, who is on
his way to sell his scooter. On meeting the perspective buyer, Mr.Arif tells a few facts
about the scooter to the buyer. Mr.Arif mentions that it is a Vespa model 1967scooter
{while the registration papers have been misplaced since many months} and can go as
fast as bullet. The buyer not though impressed by the bullet example is still lured into the
sale by the Vespa 1967 vintage model. Mr.Arif also mentions that he was sure that the
paint was original. The engine seemed alright and the general condition of the scooter
was reasonable considering that Mr. Arif was the fourth owner.
On their way back Naheed and Mr.Arif met the local market merchant who was
supposed to receive certain merchandise from Mr.Arif. Mr.Arif not happy with the
merchants previous dealings refused to honour the promise. The merchant reminded him
of the coming Sunday which was the date of honouring the promise.Mr.Arif shrugged his
shoulders and drove off.

Questions
1. Against Naheed for unpaid price of crisps?
2. Against Mr.Arif for statements as to: model, speed, paint {scooter scale}?
3. Against Mr.Arif for informing the local merchant about not honoring the
contract?

Against Naheed for unpaid price of crisps?

According to business law a minor is a person who has not completed


eighteen {18} years of age. According to majority act 1875, where a guardian of minor’s
person or property has been appointed or court of wards has taken charge of minor’s
property, a minor will reach the age of majority after 21 years. Since law says that an
agreement with minor is void because he/ she do not possess the capacity to judge what is
good and what is bad for him/her. Hence Naheed is 5 years old girls, so she is a
minor.Therfore claims can not be made successfully against her.
According to the law a person who supplies necessaries to a minor or anyone
whom the minor is bound to support, the supplier can recover reasonable value of such
goods from the property of a minor. If a minor owns no property, the supplier cannot
recover the price of necessaries. Hence the shop owner supplied crisps for a whole month
which is not said as necessary for Naheed, A claim cannot be successfully made because
contract with minor for non necessaries is absolutely void.
Against Mr.Arif for statements as to: model, speed, paint {scooter
scale}?
Misrepresentation which means innocent misstatement of fact about the contract, made
by one party to induce the other party to enter into a contract. So in above case claim can
not be made successfully against Mr. Arif for statement as to model, speed and paint of
scooter because the statement which occurs false is one of the fact that Mr.Arif give to
the buyer and there is no intention to deceive the buyer. If the perspective buyer is
addressed by he Mr.Arif mislead, he was induced by the model name and he entered into
a contact.
Due to misrepresentation the following remedies are available to the
aggrieved party.

• He can avoid the contract.


• He can accept the contract and ask the other party for restoration.

Against Mr.Arif for informing the local merchant about not


honoring the contract?

Breach of contract means the failure of party to perform his obligations.


When a party fails to perform the contract, there is a breach of contract.
There are two types.
• Actual breach
• Anticipatory breach
In implied breach a party to the contract does an act, which makes the
performance of the contract impossible while in express breach a party to the contract
communicates to the other party, his intention not to perform the contract, before the due
date of performance has arrived.

The above question is the case of express breach in which Mr.Arif showed
his intention not to perform the contract before the due date of the promise arrived. In this
case the local merchant can sue Mr.Arif for not performing the contract and also for the
damages given to him.

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