The Principle of Law of Contracts in relation to Emma the Merchant.

Topic 

The Principle of Law of Contracts in relation to Emma the Merchant.

Assignment Description 

Erma, a merchant, receives a brochure from Ammco regarding some merchandise that is sold in Erma’s business.  Erma then sends in a purchase order ordering 25 units of merchandise (which exceeds $500.00 in value).  Ammco upon receipt of the order sends a letter of confirmation containing additional information which states that the price did not include shipping and insurance costs and that the shipping costs and insurance would be added to the total contract price.  Furthermore, Ammo delegates the obligation of shipping the merchandise to Ecco.  While the goods were in transit, the truck was hijacked and all the merchandise, including Erma’s order. Applying “common law contract principles” are there Party issues?  Formation issues? Proof issues? Performance issues? Breach and Discharge issues?  What are the available remedies?

Answer Preview 

As per the situation which is affecting these parties, the privity of the contract has been contravened. The rights provided to a party within a contract cannot be transferred to another party. In this case, the loss of the goods which Emma had ordered will have to be accounted for by Ammco. This is because, although a third party was contracted to transport the goods, the contract lies between Emma and Ammco, and hence the privity of the contract is between them. The rights that Emma has under the contract cannot be transferred to the organization provided with the responsibility of transporting the products.

Word Count; 550