Contract Law Essay Example | Topics and Well Written Essays - 2000 words - 8

Contract Law - Essay Example Moreover, section 29(5) of the SGA states that delivery should be made within a reasonable period of time, and that such reasonableness depends on the circumstances of each case. As such, a clear illustration of the principles on which damages are awarded for breach of contract was provided in Hadley v Baxendale. The court held that damages for breach of contract should be such that they had naturally followed from the breach, or which could reasonably be assumed to have been envisaged by the parties to the contract. If the contract had been formed under special circumstances that had been intimated by one party to the other, then the damages for contractual breach would be what these parties could have realistically expected from such breach3. As such, the rule in Hadley v Baxendale provides a rationale for restricting damages relating to infringement of contractual terms. In addition to being a tenet of remoteness, it also provides the dividing line of recovery4. Consequently, the NGC’s expression of inability to supply the ornamental plant pots to Gerda, within the time specified by her in the normal course of events. . Thus, the NGC is justified in demanding additional payment for speedy delivery. However, if the NGC fails to deliver the ornamental pots, within the stipulated time; Gerda can repudiate the contract or claim damages, under the provisions of the SGA 1979. The greenhouse delivered to Hari was too small, broken and not delivered on time. Under the provisions of the sale of goods act, a retailer cannot exclude statutory implied terms. Any such act would make him liable for criminal prosecution. In addition, a retailer cannot attempt to restrict liability for breach of statutory implied terms. In goods sold to a buyer, an implied term exists, which requires that these goods should be appropriate for any purpose that has been made known to the seller.5 Applicability extends to