Contract Essay Example | Topics and Well Written Essays - 2000 words - 1

Contract - Essay Example All three cases are of Contract. The basic principle of contract law is "[t]he purpose of the law is to put the plaintiff in as good a position as he would have been in had the defendant kept his contract." 1 Principle of Incorporation: Within this principle, specifically the concept of mutual understanding is applicable which is â€Å"derived from the conduct of the parties that the conduct of hire was to be based on one of the party’s usual conditions’. 3 The first issue in the first scenario is whether or not the words â€Å"excellent reputation for being reliable† constitutes a misrepresentation, due to the fact that LLL were unreliable by arriving late and sending a limousine that was not clean and up to the mark. This was a common understanding developed that the service will be of good quality and presentable. The above statement could be seen as a mere puff (sales talk) which is not considered to be a statement of fact as courts would treat such as idle boasts with no contractual significance as in Dimmock v Hallet where the statement â€Å"Fertile and Improvable† was considered to have insufficient substance to be classed as a representation. Also the statement could be seen as an opinion as in Economides v Commercial Union Assurance Co Plc (1997) where estimate of content given to the insurance was considered to be a statement of opinion as he was not an expert thus not a misrepresentation. On the other hand, the above statement could be considered as opinion of a person in a better position to know the facts in which case it is misrepresentation as in Smith v Land & House Property Corporation where it was held that a statement of opinion from someone who knows the fact best is a statement of fact as the knowledge of fact justify the opinion. Furthermore, the statement was made by one party to the other i.e. LLL to AAA and if Lynda relied and acted on the statement to make her decision to give the contract to LLL, although the