Business Law Assignment

Assignment 2

However,

there is one important qualification to this; except in Queensland, if the contract is

for the sale of goods over the value of $20, the contract will not be enforceable

unless:

• some memorandum in writing of the contract is made and signed by the party

to be charged; or

• the buyer accepts some of the goods in part performance of the contract; or

• the buyer gives something in earnest to bind the contract or in part payment

(such as the payment of a deposit): Sale of Goods Act, s. 9.

It must be emphasised that this relates only to the sale of goods, not services.

Further, it does not affect the validity of the contract, merely its enforceability. If a

collector attends an exhibition, singles out a work and says to the artist, ``I'll have

that one! I'll drop in on Friday with my cheque for $1,200'', the artist cannot enforce

that contract of sale unless the collector signs a memorandum, takes a work away,

or leaves a deposit. An example of the importance of this occurred at the now

defunct David Reid Gallery in Sydney. On one occasion a client told the gallery

owner that he would buy all of the works in a Suzanne Archer exhibition. Shortly

before the close of this apparently sell-out show the client changed his mind.

Although there was a valid contract to purchase the works, the contract was

unenforceable because the dealer had neglected to get anything signed by the

client or even take a deposit. The potential personal and professional cost of such

an omission is obvious. Thus the rule is simple; when selling goods valued at over

$20 outside Queensland, one must obtain either the agreement in writing signed

by the buyer, or a deposit. But remember to keep a receipt.

At common law a number of factors may vitiate a contract. They include duress,

mistake, legal incapacity, deceit, misrepresentation, illegality and undue influence.

As one author explains, these are consistent with the consensual theory of freedom

of...