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Megastorez.com placed an online advertisement, stating that Aces laptops (Model No. LP100) were ...available at S$999 each for customers who paid by PayPal, Next day
Megastorez.com placed an online advertisement, stating that Aces laptops (Model No. LP100) were \"...available at S$999 each for customers who paid by PayPal, Next day delivery guaranteed...\" at its online store. Adrian saw the advertisement and immediately placed an order for one silver-coloured laptop at its online store, making payment via his PayPal account. The laptop was delivered the next day. On opening the box and inspecting the laptop, Adrian realized that it was a different model in white and different specifications. The customer service officer at Megastorez.com informed Adrian that there was no more stock of the original Model No. LP100. Instead, the laptop which was delivered to him was actually of a higher retail value. The officer also noted that Megastorez.com's terms and conditions (as stated on its website) stated that the store \"reserves the right to substitute products\". Adrian argued that he did not read the online terms and conditions; he had simply clicked \"Agree\" during the payment process. He wanted a full refund but Megastorez.com refused. He has come to you for advice. Question (a) Explain to Adrian whether Megastorez.com is legally obliged to deliver one silver coloured laptop (Model No. LP100) or alternatively, offer him a full refund. In your analysis, you should determine whether the four (4) key elements of a valid contract were present. Where appropriate, cite case law and the relevant statutory provisions to support your analysis. Assume that the Sales of Goods Act, Chapter 393 of Singapore and the Unfair Contract Terms Act, Chapter 396 of Singapore do not apply. (b) In the event that Adrian is not able to resolve the matter with Megastorez.com, evaluate and describe one (1) recommended course of action that he could take. Support your recommendation with reasons. Discussion on Breach of Contract by Megastorez.Com on Sale of Laptop to Adrian Megastorez.com is legally obliged to deliver a silver colored laptop (Model No. LP100) or alternatively offer him a full refund as it breached a contract. The contract was valid as the four elements were all present. The four elements of a contract; offer, acceptance, consideration and mutually were all there to make the contract effective. The offer is this case was that Megastorez.com offered to and promised to deliver Aces laptops (Model No. LP100) on customers who paid via PayPal and stated delivery was guaranteed the following day as they were available. Consideration was delivery upon payment of S$999 through PayPal which Adrian did (Chad, 2006). This consideration was what induced the parties to enter into a contract. Acceptance, in this case, was when Adrian paid the agreed amount via PayPal. Mutuality refers to understanding and agreeing to the terms of the contract (Chad, 2006). In this case, the argument by Megastorez.com that they reserved the right to substitute products means there was no mutuality of obligation between Adrian and the company. In this case, we can conclude there was no contract and there lacked mutuality of obligation that was brought about by Adrian not reading the company's terms and conditions and the company not displaying them as part of the agreement (William, 2011). The contract thus lacked substantive unconscionability and in this case, the court may declare the provision unenforceable and allow Adrian, the buyer, to pursue all available contract remedies such as damages or an action for specific performance (William, 2011). Megastorez.com may be obliged by the law to offer a full refund or deliver the laptop that Adrian had ordered for due to the online advertisement. In the event that Adrian is not able to resolve the matter with Megastorez.com, I would recommend that he sue the company in a court of law. The court of law may then compel the company to deliver the silver colored laptop as the terms of the sale contract dictated (JEC, 2016). I would recommend legal action as not only Adrian will get the necessary help but also other people who may have fallen into Megastorez.com trap. References Chad, A.J., (2006). Responding to a breach of purchase agreement. Hellmuth& Johnson. Retrieved from http://www.hjlawfirm.com/blog/54-responding-to-a-breach-of JEC, (2016).Elements of a contract. Institute of Public Law. Retrieved http://jec.unm.edu/education/online-training/contract-law-tutorial/contract-fundamentals-part-2 William, G.M., (2011). It's the law: A Contract is Unenforceable without Mutual Obligation. Marco Island Law Blog. Retrieved from http://www.wgmorrislaw.com/Marco-IslandLaw-Blog/2011/December/Its-the-Law-A-Contract-is-Unenforceable-Without-.aspx
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