University Assignment Of Analysis Of Contract Breach

$ 80.00 — 240.00 HKD

David is the proprietor of shop A which sells toys. He sustains business losses since a year ago as few customers buy toys from him. On 1st February, he visited company B (a major supplier that supplies different toys and it is a successful business). David had visited company B and purchased some toys from it for shop A on an occasion four years ago. He told Batty, a manager of company B, that he would like to know the prices of toy X and toy Y (toy X and toy Y were displayed in the premises of company B). Batty told him the prices of the two toys accordingly and assured him that toy X could produce music (she mentioned the melody). Being satisfied with the prices and having been assured that toy X could produce the specified music, David told Batty that he would purchase ten items of toy X for shop A (he planned to sell toy X to his customers) and an item of toy Y for himself (he would like to give toy Y to Olivia, his daughter, as a gift). He also walked to the cashier to make payment.

There was a notice fixed at the cashier. The notice stated, in a large font size and in Chinese (David can understand Chinese), “we have an exemption clause, and you can ask us to show you the clause in our handbook for customers”. As David was busy talking over the phone, he did not notice the said statement. David then made payment for the ten items of toy X and one item of toy Y separately. Company B subsequently arranged for delivering the ten items of toy X and one item of toy Y to shop A and his home respectively on 3rd February as agreed between him and Batty. He found that while the ten items of toy X could produce sounds but not the music mentioned by Batty earlier (Batty made a mistake about toy X – she mixed up toy X with toy Z which could produce music), toy Y could not be played at all. David visited company B again on 4th February and demanded for refund. Batty showed him a handbook for customers in which there was a statement, “there is refund of a half of the purchase price to our customers due to any problem of our product(s)”. She also refused to arrange for full refund to him.

Analyze whether David can demand for full refund from company B. (1000 words+)

AccountingContractsContract Management

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